Port of Corpus Christi Tariff Review A presentation to the Port of Corpus Christi Authority August 15, 2017 Purpose

• To better understand how tariff rates at Corpus Christi compare to those at other Gulf Coast Ports • This effort specifically focuses on liquid bulk tariff rates, which accounted for over 85 percent of the total tonnage handled at the Port of Corpus Christi in 2016 Methodology: Collected data from 15 Gulf Coast ports Methodology: Collected data from 15 Gulf Coast ports

• Wharfage rates • Facility attributes • Dockage rates • Terminal assets • Fees and surcharges • Cargo handling assets • Cargo volumes by • Storage assets commodity • Multimodal access Total Tonnage Handled: All Commodities, 2014

) 250 s

n o T

t r o

h 200 Port of Corpus Christi S

n Port of New Orleans o i l l i Port of Baton Rouge M (

d 150 Port of Mobile e l

d Port of Lake Charles n a

H Port of City

e

g a 100 n

n Port of Tampa Bay o T

l Port Everglades a t

o Port of Freeport

T 50 0 Port of Gulfport All Commodities Total Tonnage Handled: and Chemical Products

) 160 s n Port of Houston o T

140 t Port of Beaumont r o

h Port of Corpus Christi S 120 n Port of Lake Charles o i l l

i

M 100 (

Port of Port Arthur d e l Port of New Orleans d 80 n

a Port of Baton Rouge H

e 60 Port of Freeport g a Port of Tampa Bay n n o 40 Port Everglades T l a Port of Mobile t o 20 T Port of Galveston Port of Brownsville 0 20 Petroleum and Petroleum 30 Chemicals and Related Products Port of Gulfport Products Petroleum and Chemical Product Tonnages by Commodity (million tons)

Corpus Baton Commodity Houston Beaumont Lake Charles Texas City Christi Rouge Crude Petroleum 49.74 52.62 37.04 27.76 17.86 5.88 Distillate Fuel Oil 31.64 7.21 10.75 8.35 9.66 8.01 11.95 5.81 7.88 6.12 4.27 3.51 Other Hydrocarbons 5.25 0.93 3.64 1.04 1.83 1.86 Residual Fuel Oil 13.85 2.36 3.22 1.16 2.65 3.98 Naphtha & Solvents 12.61 3.85 2.58 1.79 3.52 0.94 Asphalt, Tar & Pitch 2.34 1.56 1.53 0.22 0.15 1.31 Petroleum Coke 7.09 1.74 1.48 3.19 1.42 1.92 Sodium Hydroxide 1.12 0.15 1.10 1.22 0.04 2.97 Hydrocarbon & Petrol 14.00 0.11 0.99 0.06 1.33 0.45 Gasses Benzene & Toluene 5.78 1.01 0.88 0.24 0.70 2.53 Alcohols 6.87 0.54 0.45 0.01 1.60 1.30 Petroleum and Chemical Product Tonnages by Commodity (million tons)

160 Hydrocarbon & Petrol Gases

140 Sodium Hydroxide

120 Petroleum Coke ) 4 1 0 2

( Asphalt, Tar & Pitch 100 d e l e d

n Naphtha & Solvents a 80 H

s n

o Residual Fuel Oil T

n 60 o i l l i Other Hydrocarbons M 40 Gasoline

20 Distillate Fuel Oil

0 Houston Beaumont Corpus Lake Charles Texas City Baton Rouge New Orleans Crude Petroleum Christi Wharfage Rate for Liquid Bulk NOS by Port ($ per Barrel) Fully Loaded Wharfage Rates for Petroleum Liquid Bulk (Per Barrel)

Port Base Wharfage Rate Surcharges & Fees Full Burden

Port Arthur 0.3910 0.0450 0.4360 Beaumont 0.1880 0.0450 0.2330 Houston 0.2000 0.0064 0.2064 New Orleans 0.1579 0.0380 0.1959 Lake Charles 0.1775 0.0068 0.1842 Texas City 0.0892 0.0600 0.1492 Freeport 0.1098 0.0105 0.1203 Baton Rouge 0.1128 0.1128 Corpus Christi 0.1005 0.0008 0.1013 Tampa 0.0820 0.0820 Fully Loaded Wharfage Rates for Petroleum Liquid Bulk (Per Barrel)

0.50

0.45

0.40 l e r r

a 0.35 B

r e p 0.30 n e d r

u 0.25 B

e g a

f 0.20 r a h W

l 0.15 l u F 0.10

0.05

0.00 Port Arthur Beaumont Houston New Orleans Lake Texas City Freeport Baton Corpus Tampa Charles Rouge Christi

Base Wharfage Rate Surcharges & Fees Fully Loaded Burden Example: Average Petroleum Tanker

Base Dockage: Base Wharfage: Surcharges & Port Full Burden 800ft Vessel 550,000 Barrels Fees Port Arthur 10,840 215,048 4,725 230,613 Houston 8,880 110,005 4,292 123,178 Beaumont 9,904 103,389 4,638 117,931 Lake Charles 9,728 97,599 4,622 111,949 New Orleans 7,000 86,846 3,143 96,989 Texas City 6,376 49,060 33,000 88,436 Freeport 9,512 60,379 6,598 76,489 Baton Rouge 9,728 62,033 575 72,336 Corpus Christi 10,152 55,275 6,060 71,487 Tampa 9,728 45,100 600 55,428 Commodity Value Based Wharfage Adjustments

Adjusted Value Weight Value Per Ton Adjustment Commodity Category Wharfage ($ million) (million tons) ($) Factor (per Barrel) Basic chemicals 35,923 27.64 1,230 1.55 0.1559 Chemical products 17,355 5.12 3,387 4.04 0.4063 Fuel oils 10,016 12.47 803 0.96 0.0963 Gasoline 13,991 16.70 838 1.0 0.1005 Wharfage Rate for Iron and Steel Articles by Port (per ton)

4.00

Everglades 3.50 Mobile

) Freeport n 3.00 o T

Gulfport t r

o Corpus Christi h 2.50 S

r Houston e p

Port Arthur $

( 2.00

e Beaumont t a R

Tampa

e 1.50 g

a Baton Rouge f r a

h Galveston 1.00 W Lake Charles New Orleans 0.50 Brownsville Texas City 0.00 Iron and Steel Articles Wharfage Rate for Dry Bulk by Port (per ton)

2.50

Texas City Lake Charles 2.00 ) Port Arthur n o

T Corpus Christi

t r

o Gulfport h S

r 1.50 Beaumont e p Galveston $ (

e

t Tampa a R 1.00 Everglades e g

a New Orleans f r a

h Freeport W 0.50 Mobile Baton Rouge Brownsville Houston 0.00 Dry Bulk Wharfage Rate for Machinery and Machinery Parts by Port (per ton)

8.00 Houston 7.00 Everglades

) Gulfport n

o 6.00 T

Corpus Christi t r o

h Mobile 5.00 S

r Beaumont e p Lake Charles $ 4.00 (

e

t Tampa a R

3.00 Brownsville e g

a Freeport f r

a 2.00

h Galveston

W New Orleans 1.00 Baton Rouge Texas City 0.00 Machinery & Machinery Parts Port Arthur Thank you!

Michelle Humphrey is a Project Consultant for Northern Economics, Inc. Additional Wharfage and Dockage Surcharges by Port

Security Surcharge— Port Security Surcharge—Wharfage (per ton) Other Fees Dockage Corpus Christi 7.50% total dockage 7.50% total wharfage $1,153 per voyage Harbor Safety Fee $425 per voyage harbor fee to all ocean-going vessels Baton Rouge $150 per Vessel engaged in foreign or coastwise trade breakbulk $0.195, dry bulk $0.045, liquid bulk Beaumont 9.25% total dockage $0.045

breakbulk $0.0363, bulk (dry or liquid) Brownsville 8.75% total dockage $0.0363, NOS $0.1179

breakbulk $0.173, dry bulk $0.035, liquid bulk Fire Protection Service Fee of $0.0269/barrel on petroleum Everglades $0.158 per GRT (Cargo vessels) $0.034 products

Freeport 8.50% total dockage breakbulk $0.20, bulk (dry or liquid) $0.07

Galveston 8.75% total dockage breakbulk $0.19, bulk $0.04, liquid bulk $0.04

breakbulk: $0.16, dry bulk: $0.05, liquid bulk: Gulfport 7.50% total dockage $0.05 Houston 8.75% total dockage breakbulk $0.19, bulk (dry or liquid) $0.0425

breakbulk $0.195, bulk $0.045, liquid bulk Lake Charles 9.25% total dockage $0.045 breakbulk $0.19, dry bulk $0.04, liquid bulk Mobile 9.00% total dockage $0.04 breakbulk $0.16, bulk $0.038, liquid bulk New Orleans $0.038 Breakbulk $0.195, dry bulk $0.045, liquid bulk Port Arthur 9.25% total dockage $0.045 Tampa $0.75 per foot Harbor Master Fee

Texas City Wharfage surcharges on crude oil: $0.06/barrel.