Marine Terminal Design and Container Handling Systems M

MarineMarine TerminalTerminal ManagementManagement TrainingTraining ProgramProgram

JanuaryJanuary 24,24, 20052005 TopicTopic II MARINE TERMINAL DESIGN AND CONTAINER HANDLING SYSTEMS M. John Vickerman Principal Norfolk, Virginia

CopyrightCopyright © 2005 Today’sToday’s AgendaAgenda •• OverviewOverview ofof thethe PlanningPlanning GuidebookGuidebook HandoutHandout •• NorthNorth AmericanAmerican MaritimeMaritime && IntermodalIntermodal IndustryIndustry PressuresPressures •• InternationalInternational MaritimeMaritime CargoCargo ForecastForecast TrendsTrends •• MaritimeMaritime VesselVessel TechnologyTechnology TrendsTrends && PortPort ProductivityProductivity •• FastFast ShipShip TechnologiesTechnologies •• NorthNorth AmericanAmerican DomesticDomestic TruckTruck GrowthGrowth •• USUS ClassClass II RailroadRailroad && IntermodalIntermodal GrowthGrowth •• EmergingEmerging InformationInformation TechnologiesTechnologies (IT)(IT) OpportunitiesOpportunities •• TerminalTerminal PlanningPlanning ToolsTools CopyrightCopyright ©© 20052005 OverviewOverview ofof thethe MaritimeMaritime && IntermodalIntermodal PlanningPlanning GuidebookGuidebook HandoutHandout

SectionSection 1:1: IntroductionIntroduction 1.11.1 •• ContainerizedContainerized CargoCargo 1.1 1.1 •• Next-GenerationNext-Generation VesselsVessels andand MarketMarket PenetrationPenetration 1.2 1.2 •• ContainershipContainership SizeSize LimitsLimits 1.4 1.4 •• NavigationNavigation andand VesselVessel TypesTypes 1.5 1.5 •• TerminalTerminal Equipment,Equipment, DeDesignsign andand OperationOperationnn 1.9 1.9 )) ttioio tteded •• LandsideLandside AccessAccessttaa dda 1.12a 1.12 •• VesselVessel Logistics,Logistics, EmergenceEmergence ofof HubHub PortsPortsenen upp resres ((u •• andand VesselVessel DeploymentDeployment StrategiesStrategiesgg PP 1.14 1.14 •• AdvancedAdvanced TechnologiesTechnologies inandinand LaborLabornsns PracticesPractices 11 && 99 1.14 1.14 •• ConclusionConclusionlowlow tioio 1.17 1.17 olol ecect he FF SS Section TT2:he Planningeww Process/Inventory 2.1 SectionSection 2:2: PlanningPlanningrvivie Process/InventoryProcess/Inventory2.1 2.1 •• ProcessProcesseer 2.1 2.1 OOvv •• FacilityFacilityillill DataData 2.2 2.2 •• TheTheww PlanningPlanning ProcessProcess 2.6 2.6

CopyrightCopyright ©© 20052005 MarineMarine andand IntermodalIntermodal PlanningPlanning GuidebookGuidebook SectionSection 3:3: DefinitionDefinition ofof IssuesIssues3.1 •• GeneralGeneral 3.1 3.1 •• SITESITE MeetingsMeetings 3.1 3.1 •• ProjectProject CritiqueCritique 3.1 3.1 •• ScopeScope 3.1 3.1 •• ProjectProject PlanningPlanning ScheduleSchedule 3.3 3.3 •• TerminalTerminal OperationalOperationalPage CharacteristicsCharacteristics 4.23 Berth Utilization AnalysisAnalysis 3.3 3.3 •• TerminalTerminal StaffingStaffing RequirementsRequirements 3.5 3.5

SectionSection 4:4: AnalysisAnalysis ofof KeyKey FactorsFactors 4.1 4.1 •• GeneralGeneral 4.1 4.1 •• CargoCargo ForecastsForecasts 4.1 4.1 •• CargoCargo ThroughputThroughput andand ProductivityProductivity StandardsStandards 4.1 4.1 •• TerminalTerminal ThroughputThroughput CapacityCapacity AnalysisAnalysis 4.14 4.14 FacilityFacility NeedsNeeds AssessmentAssessment 4.20 4.20 •• BerthBerth OccupancyOccupancy AnalysisAnalysis 4.21 4.21 •• CraneCrane UtilizationUtilization AnalysisAnalysis 4.24 4.24 •• ContainerContainer GantryGantry CraneCrane ProcessProcess TimesTimes 4.25 4.25 •• ProcessProcess FlowFlow AnalysisAnalysis 4.26 4.26

175% DAILY BERTH UTILIZATION 7 DAY RUNNING AVERAGE 150% 31 DAY RUNNING AVERAGE MPBO 125%

100%

75%

50%

Occupation/Utilization Percentage Occupation/Utilization 25%

0% 1/1 2/1 3/1 4/1 5/1 6/1 7/1 8/1 9/1 10/1 11/1 12/1 Day of the Year

SectionSection 6:6: SelectionSelection ofof OptimalOptimal SolutionSolution6.1 6.1 •• AlternativeAlternative OperationsOperations anandd FacilitiesFacilities AnalysisAnalysis 6.3 6.3 •• SimulationSimulation 6.5 6.5

SectionSection 7:7: MarineMarine TerminalTerminal LayoutLayout7.1 7.1 •• WharfWharf LayoutLayout 7.1 7.1 •• YardYard LayoutLayout 7.4 7.4 •• IntermodalIntermodal YardYard StorageStorage LayoutLayout ConsiderationsConsiderations 7.12 7.12 •• BuildingBuilding LayoutLayout 7.21 7.21 •• GateGate LayoutLayout 7.27 7.27 •• MiscellaneousMiscellaneous FacilityFacility 7.32 7.32 Page 7.17 TEU Per Acre Page 7.18 Diagonal Parking

SectionSection 8:8: ImplementationImplementation PlanPlan 8.1 8.1 •• IntroductionIntroduction 8.1 8.1 •• ProjectProject ScheduleSchedule (CPM)(CPM) 8.1 8.1 •• ConstructionConstruction PhasingPhasingNew Section 8.1 8.1 •• ProjectProject TimelineTimeline 8.2 8.2 •• ConstructionConstruction BudgetBudget EstimateEstimate 8.6 8.6 •• BudgetBudget EstimateEstimate ExplanatoryExplanatory NotesNotes 8.6 8.6 •• BudgetBudget SummarySummary 8.12 8.12

SectionSection 9:9: WorldWorld MaritimeMaritime IndustryIndustry RecentRecent Developments/FutureDevelopments/Future Outlook Outlook 9.19.1 •• EmergingEmerging ConceptsConcepts 9.1 9.1 •• EmergingEmerging Technologies/SystemsTechnologies/Systems 9.7 9.7 •• InlandInland Waterways:Waterways: BargeBarge OperationsOperations 9.21 9.21 •• HighHigh SpeedSpeed FerryFerry BestBest PracticesPractices 9.23 9.23

CopyrightCopyright ©© 20052005 MarineMarine andand IntermodalIntermodal PlanningPlanning GuidebookGuidebook AppendixAppendix A:A: Questionnaires, Checklists and GlossaryGlossary •• ContainerContainer TerminalTerminal DataData QuestionnaireQuestionnaire •• DryDry BulkBulk TerminalTerminal DataData QuestionnaireQuestionnaire •• LiquidLiquid BulkBulk TerminalTerminal DataData QuestionnaireQuestionnaire •• BreakbulkBreakbulk TerminalTerminal DataData QuestionnaireQuestionnaire •• IntermodalIntermodal RailRail FacilitFacilityy DataData QuestionnaireQuestionnaire •• WarehouseWarehouse TerminalTerminal DataData QuestionnaireQuestionnaire •• Automobile/Ro-RoAutomobile/Ro-Ro TerminalTerminal DataData QuestionnaireQuestionnaire •• PassengerPassenger CruiseCruise TerminTerminalal DataData QuestionnaireQuestionnaire •• ContainerContainer TerminalTerminal ChecklistChecklist •• IntermodalIntermodal RailRail FacilityFacility ChecklistChecklist •• ContainerContainer TerminalTerminal GateGate DesignDesign andand EvaluationEvaluation ChecklistChecklist •• GlossaryGlossary ofof IntermodalIntermodal andand MaritimeMaritime TermsTerms

AppendixAppendix B:B: VesselVessel DataData AppendixAppendix C:C: GeneralGeneral ChannelChannel GuidelinesGuidelines AppendixAppendix D:D: TypicalTypical DetailsDetails

CargoCargo Demands,Demands, Capacity,Capacity, Funding,Funding, && ProductivityProductivity ConcernsConcerns

NorthNorth AmericanAmerican PortsPorts

CopyrightCopyright ©© 20052005 TheThe “Port”“Port” OneOne ofof thethe ManyMany DiverseDiverse ConstituenciesConstituencies inin thethe CargoCargo TransportationTransportation LogisticsLogistics ChainChain Port RailroadsRailroads Shipping Agents Motor Carriers/ Truckers Shippers Objective: Freight Forwarders/ A multimodal Carriers/Carriers/ BrokersBrokers “Seamless” integrated NVOCCsNVOCCs world wide cargo conveyance system. Customs Agencies Stevedores/ Terminal Operators Warehousing/ CFS Operators Longshore Labor Pilotage/Tuggage Governmental Regulation/ Compliance

CopyrightCopyright ©© 20052005 U.S.U.S. IntermodalIntermodal FreightFreight TransportationTransportation SystemSystem isis anan essentialessential componentcomponent ofof ourour nationalnational commercialcommercial economyeconomy ThisThis systemsystem isis atat risk…risk…

CopyrightCopyright ©© 20052005 WhatWhat WeWe KnowKnow Today...Today... WillWill BeBe SurelySurely BeBe DifferentDifferent Tomorrow…Tomorrow… OurOur TerminalTerminal PlanningPlanning MustMust BeBe FlexibleFlexible

CopyrightCopyright ©© 20052005 ToTo BeBe CompetitiveCompetitive Today...Today...Marine/Intermodal Marine/Intermodal TerminalsTerminals MustMust ReduceReduce ThroughputThroughput CostCost && IncreaseIncrease CargoCargo Velocity…Velocity… SecurelySecurely

CopyrightCopyright ©© 20052005 We do not have an “Maritime/Intermodal System” as such. Rather we have an aggregation of multiple, private and public modes, each of which are “stove-piped” within their own individual areas of interest with little or no true cross communication and collaboration.

CopyrightCopyright ©© 20052005 The North American Freight Paradox: The Nation’s Ports and Their Intermodal Linkages are Experiencing the “Best of Times and the Worst of Times” in Terms of Growth and Demands on Capacity

NewportNewport NewsNews MarineMarine TerminalTerminal

VPA’sVPA’s CraneyCraney IslandIsland NorfolkNorfolk InternationalInternational MarineMarine TerminalTerminal DevelopmentDevelopment TerminalsTerminals

Maersk-SeaLand Cox Property

MAERSK/SEALANDMAERSK/SEALAND PrivatePrivate TerminalTerminal PortsmouthPortsmouth MarineMarine TerminalTerminal

TransportationTransportation Deregulation

ServiceService GrowthGrowth CarrierCarrier IntegrationIntegration InventionInvention andand RegulationRegulation andand DiversificationDiversification OptimizationOptimization

ModallyModally ModalModal GovernmentalGovernmental OptimizationOptimization OrientedOriented RefinementRefinement LimitsLimits onon ofof EndEnd toto EndEnd ServicesSServicesServiceservices DominatedDominated byby DestructiveDestructive DistributionDistribution EquipmentEquipment CompetitionCompetition andand CostCost inin TypesTypes andand andand ShelteringSheltering thethe OverallOverall InfrastructureInfrastructure ofof EmergingEmerging LogisticsLogistics DevelopmentDevelopment ChainChain MMooddeses

43%43% 38%38% ScheduleSchedule FreightFreight RateRate ReliabilityReliability

12%12% TransitTransit TimeTime

CopyrightCopyright ©© 20052005 Today’sToday’s LogisticsLogistics TruthsTruths “Inland“Inland costscosts representrepresent 75%75%of of anan oceanocean containercontainer shippingshipping line’sline’s totaltotal cost.”cost.”

Source:Source: GuntherGunther Casjens Casjens CEOCEO Hapag-LloydHapag-Lloyd

U.S.U.S. IntermodalIntermodal RailRail FlowFlow

WesternWestern CentroidCentroid Shift Shift

Eastbound:Eastbound:All All WaterWater FlowFlow Eastbound:Eastbound:US US IntermodalIntermodal RailRail FlowFlow

CopyrightCopyright ©© 20052005 SoutheastSoutheast AsianAsian ManufacturingManufacturing CentroidCentroid Shift Shift CurrentCurrent InboundInbound U.S.U.S. CargoCargo FlowFlow WesternWesternWesternWestern CentroidCentroidCentroidCentroid ShiftShiftShiftShift

UU.S.UU.S..S..S. IntermodalIntermodalIntermodalIntermodal RRailRRailailail FlowFlowFlowFlow

WestboundWestboundWestboundWestbound AllAllAllAll Water/SuezWater/SuezWater/SuezWater/Suez FlowFlowFlowFlow WestboundWestboundWestboundWestbound IntermodalIntermodal IntermodalIntermodal U.S.U.S.U.S.U.S. FlowFlowFlowFlow

CopyrightCopyright ©© 20052005 InternationalInternational MaritimeMaritime CargoCargo ForecastForecast TrendsTrends FunctionalFunctional ClassificationClassification ofof MaritimeMaritime CargoesCargoes

All Maritime Cargo

General Cargo Bulk Cargo

BreakBreak BulkBulk Neo-Bulk Neo-Bulk Containerized Containerized Liquid Bulk Dry Dry BulkBulk

Sacks, Cartons, Lumber, Paper,Paper, Containers,Containers, LNG, Petroleum,Petroleum, Grain, SandSand && Crates, Drums, Steel, Autos LiftLift On/LiftOn/Lift OffOff Molasses, Gravel, Scrap Pallets, Bags (Lo/Lo),(Lo/Lo), Chemicals, Metal, Coal/Coke,Coal/Coke, RollRoll On/RollOn/Roll OffOff Vegetable Oil Clinker, Fertilizer (Ro/Ro)(Ro/Ro)

4040

$$ 4040 TrillionTrillion s

s 3030

l l l $ 30 Trillion

i $ 30 Trillion

i 2020

T T 1010 0 20002000 20102010

CopyrightCopyright ©© 20052005 20013131 MM World Container Gateways TEUsTEUs byby “The World’s Top 12 Gateways” 2011201118.118.1 18 17.117.1 Hong Kong Alone is Equal to the 15 Top Seven US Container Ports

12 US Ports POLA + POLB 8.28.2 9 7.07.0 6.46.4 6.3 6.3 NY/NJ 6 4.24.2 3.73.7 3.63.6 TEUs in Millions TEUs in Millions 2.8 2.8 2.7 iung 2.8 2.8 2.7 rdam burg

3 e hs gapore ng Kong t m n ao Ho Si Manila Shanghai Antwerp K Rot Busan Ha Dubai 0 Rank 121234567891011123 4567891011 12

Source:Source: AAPA,AAPA, ContainerisContainerisationation Internatio Internationalnal YearbookYearbook CopyrightCopyright ©© 20052005 TheThe ContainerContainer IndustryIndustry ContinuesContinues toto Consolidate…Consolidate…

8,180 TotalTotal numbernumber ofof slotsslots 8,180 9,0009,000 SlotsSlots controlledcontrolled byby toptop 2020 carrierscarriers 8,0008,000 SlotsSlots controlledcontrolled byby 44 globalglobal alliancesalliances 7,0007,000 5,0535,053 4,8504,850 6,0006,000 5,0005,000 59.2% 2,6742,674 4,0004,000 2,2442,244 1,976 Operation and on Order Operation and on Operation and on Order Operation and on 3,0003,000 1,976 1,4791,479 Thousands of TEU Thousands of TEU Slots in Thousands of TEU Thousands of TEU Slots in 2,0002,000 744744 44.4% 1,0001,000 37.7% 00 19841984 1995 1995 2000 2000

ForecastForecastIn 2040 TransitsTransits ContainerContainer ShipsShips WillWillContainer DominateDominate CanalCanal TransitsTransits 000000 #1 5,5,0005,5,000 In 1980 BulkBulk Container BulkContainerBulkContainer s s s s 4,000 t t 4,0004,000 t

t 4,000 i i Container i i #4 GeneralContainerGeneral CarCar GeneralGeneralggoo rans rans rans rans CarCar T T T T 3,000

3,000

TankerTanker f Tanker f f f Ro-RoRo-Ro er o er er o er er o er er o er b b b b 2,0002,000 ReeferReefer um um um um N N N N VVehicleehicle 1,0001,000

00 198019801980 1990 1990 1990 2000 2000 2000 2010 2010 2010 2020 2020 2020 2030 2030 2030 2040 2040 2040

Source:Source:Source:Source: PanamaPanama PanamaPanama Canal Canal Canal Canal Commission Commission Commission Commission//ICFICF Kaiser,Kaiser Kaiser,Kaiser,, JuneJune JuneJune 1997 1997 1997 1997 CopyrightCopyright ©© 20052005 WorldWorld ContainerizationContainerization ofof thethe GeneralGeneral CargoCargo TradesTrades

1,000 900 800 s s

n o n 700 o argg o o General C

T 600 T 600 Approximately 75% of All

f f 500 o o General Cargo is Containerized70% s s 400 n n 300 rgo o 300 r o a 55% i i d CC l d l e

l z l 200 erriz i 200 e i inn Contaa 40%40% % Containerized M M 100 31%31% 23% 00 23% 19801980 1985 1985 1990 1990 1995 1995 2000 2000 2005 2005 2010 2010

TonnageTonnage ForecastForecast CAGR TotalTotal 79.2 79.2 119.5 119.5 188.7 188.7 236.6 236.6 355.6 355.6 7.8% 7.8% NENE (Maine(Maine toto Virginia)Virginia) 6.3%6.3% CAGR SESE (NC(NC toto Tampa)Tampa) GulfGulf (Mobile(Mobile toto ElEl Paso)Paso) 100100 SWSW (San(San DiegoDiego toto OaklandOakland 6.6%6.6% NWNW (Oregon(Oregon toto Alaska)Alaska) 8080 7.6%7.6% By 2020 Most US Container Port Gateways7.2%7.2% ons ons 6060 T T

0 Will Double or Triple in Volume 0 0 0 0 4040 , , 0 0 0 0 0 0 , , 20

1 20 1

00 19901990 1995 1995 2000 2000 20052005 20102010 Source:Source DRI/McGraw: DRI/McGraw HillHill CopyrightCopyright ©© 20052005 North American Maritime Trade: Constant Bearing-Decreasing Range “The Perfect Storm”: China Imports

25.9 %

27.3 %

35.4 % 17.1 % 30.1 %

5 Yr Average = 27.2%

•• GlobalGlobal manufacturingmanufacturing isis nownow centeredcentered inin China.China. •• ChinaChina willwill doubledouble itsits GDPGDPby by 20102010 andand quadruplequadrupleit it byby 2020.2020. •• ByBy 20082008 ChinaChina willwill bebe thethe secondsecond largestlargest globalglobal tradingtrading country.country. •• China’sChina’s cargo,cargo, includingincluding HongHong KongKong loadingsloadings accountsaccounts forfor 70%70% ofof thethe totaltotal PacificPacific cargocargo flowsflows.. •• China’sChina’s containercontainer volumesvolumes willwill increaseincrease fromfrom 6060 millionmillion TEUsTEUs toto overover 100100 millionmillion TEUsTEUs byby 20102010..

CopyrightCopyright ©© 20052005 China’sChina’s MinistryMinistry ofof RailwaysRailways SignedSigned aa 55 yearyear CooperationCooperation AgreementAgreement withwith thethe USUS BNSFBNSF RailroadRailroad forfor IntermodalIntermodal RailRail DevelopmentDevelopment •• Develop Develop China’sChina’s highhigh volumevolume efficientefficient intermodalintermodal networknetwork •• $242 $242 billionbillion programprogram toto 20202020 •• High High volumevolume intermodalintermodal freightfreight corridorscorridors toto majormajor portsports •• On-dock On-dock && near-docknear-dock intermodalintermodal transfertransfer yardsyards atat portsports •• Ministry Ministry toto buildbuild 1818 mega-terminalsmega-terminals withwith 77 atat seaportsseaports

75% of the 16 Ports Studied will have Significant Capacity Problems by 2010

Predicts that Port and Intermodal Systems for the 13 Southern US States Will Reach Capacity in 2008 - 2012

15,00015,000 LowLow (40'(40' Channels)Channels) 12,00012,000 BaseBase (45'(45' Channels)Channels) HighHigh (50'(50' Channels)Channels) s s U U E E 9,0009,000 4X4X T T

6,0006,000

3,0003,000 CurrentCurrent 0 CapacityCapacity 19951995 2000 2000 2010 2020 2020 2030 2030 2040 PlanningPlanning YearYear Source:Source: PANY/NJPANY/NJ CopyrightCopyright ©© 20052005 PortPort AuthorityAuthority ofof NewNew York/NewYork/New JerseyJersey PPortort IInlandnland DDistributionistribution NNetworketwork (PIDN)(PIDN)

CA ME

c o i i VT t r NY NH n a n t a n a e 400 Miles l 400 Miles O c e t k O a A L Albany Brockton Syracuse MA Rochester Fall CT R River Legend Buffalo New e I Quonset ri Have Barge Route E Point ke n a Rail RouteL Port of Bridgeport Inland Truck Route PA Port of Reading Port of NJ New York/ Camden New Jersey Port of Pittsburg Philadelphia Camden 7575 MilesMiles

Hanover Port of Wilmington

Virginia Inland Port (VIP) Front Royal Virginia (Norfolk Southern Rail Ramp)

The Largest US Intermodal Rail Facility

1996 - 2000 = 4.8% CAGR 2000 - 2020 = 6.2% CAGR ) ) 25 “Cargo will quadruple, a 320% change” y 51% t pty p Intermodall m m 51% E E

20 Split Intermoda

& 57% Imports

d d e e 2X2X d d Container

oa 15 Loa L ( (

) ) s s 0 0 0 0 10 0 0 ( ( s s Current U

U Current E E T T 5 Intermodal RailCapacityCapacity

0 19961996 2000 20002005 20052010 20102015 20152020 2020 (Worse(Worse Case:Case: AsianAsian CrisisCrisis Steady-State)Steady-State)

“At“At currentcurrent growthgrowth andand perper acreacre productivity,productivity, inin 1818 yearsyears thethe twotwo PortsPorts willwill requirerequire3,624 3,624 newnew acresacres ofof containercontainer terminal”terminal”**

** Source:Source: PortPort ofof LongLong BeachBeach

North American Ports Are Not As Productive As The Most Productive International Ports By a Factor Of More Than 4 To 1

CopyrightCopyright ©© 20052005 GlobalGlobal MarineMarine TerminalTerminal ProductivityProductivity GrowthGrowth (Circa(Circa 19951995 toto 2003)2003) (Throughput(Throughput measuredmeasured inin TEUs/Acre/Year)TEUs/Acre/Year) 19951995 20032003 5YR5YR CAGRCAGR AsianAsianAsian PortsPortsPorts 8,8348,834 18,50018,500 19.9%19.9% EuropeanEuropeanEuropean PortsPortsPorts 2,9742,974 6,8006,800 9.2%9.2% UnitedUnitedUnited StatesStatesStates PortsPortsPorts 2,1442,144 3,9003,900 9.0%9.0%

USUS WestWest CoastCoast PortsPorts 3,5673,5673,567 4,3004,300 10.9%10.9% USUS GulfGulf CoastCoast PortsPorts 2,8162,816 4,0004,000 3.7%3.7% USUS EastEast CoastCoast PortsPorts 1,2811,281 3,3003,300 10.3%10.3%

Source:Source: 19951995 && 20032003 CICI Yearbooks,Yearbooks, SeaporSeaportsts ofof thethe Americas,Americas, PortPort Data Data CopyrightCopyright ©© 20052005 20032003 InternationalInternational PortPort ProductivityProductivity TopTop 1010 PortsPorts inin MillionsMillions ofof TEUTEU ThroughputThroughput

Source: Computed from Seaports of the Americas – 2003, Containerization International Yearbook - 2003 and port-provided data bases/interviews CopyrightCopyright ©© 20052005 20032003 USUS PortPort ProductivityProductivity TopTop 1010 PortsPorts inin TEUsTEUs ofof ThroughputThroughput

Source: Computed from Seaports of the Americas – 2003, Containerization International Yearbook - 2003 and port-provided data bases/interviews CopyrightCopyright ©© 20052005 20032003 PotentialPotential USUS PortPort ProductivityProductivity TopTop 1010 PortsPorts inin TEUTEU ThroughputThroughput

Source: Computed from Seaports of the Americas – 2003, Containerization International Yearbook - 2003 and port-provided data bases/interviews CopyrightCopyright ©© 20052005 20032003 USUS PortPort ContainerContainer ThroughputThroughput byby CoastCoast

Source: Computed from Seaports of the Americas – 2003, Containerization International Yearbook - 2003 and port-provided data bases/interviews CopyrightCopyright ©© 20052005 FreeportFreeport ContainerContainer PortPort (FCP),(FCP), Freeport,Freeport, BahamasBahamas NorthNorth AmericanAmerican TransshipmentTransshipment CenterCenter

ConventionalConventional TransshipmentTransshipment ContainerContainer MovementMovement ContainerContainer MovementMovement

Throughput Throughput Movement Movement +

Throughput Movement

Throughput = Moves

1,285,821

1,400,000

1,200,000

1,000,000

s s

U U 800,000

TE TE 600,000 210,826 201,448 400,000 116,724 47,480 48,726 47,480 37,000 14,892 13,396 200,000

0 rea a o e a an iin ny c KK p n p e land a oW h Ch ma land h R Ja Ch r re o h R ut enmark P G o G S Ge D

TEUTEU CapacityCapacity

1,7001,700 TEUTEU 1st Generation ( Pre-1960 (Pre-1960 - 1970 - 1970))

2,3052,305 TEUTEU 2nd Generation (1970(1970 -- 1980)1980)

3,2203,220 TEUTEU 3rd Generation ( 1985 (1985))

4,8484,848 TEUTEU

4th Generation ( 1986 (1986 - 2000 - 2000))

7,5987,598 TEUTEU

5th5th GenerationGeneration (2000(2000 -- 2005) 2005)

Eiffel Tower – 990 feet

Reginia Maersk – 1043 Ft, 140 Ft wide, 6000+ TEUs

63% “Mega Ships” 5,000+5,000+ TEUsTEUs

4,0004,000 –– 4,999 4,999 TEUsTEUs

3,0003,000 –– 3,999 3,999 TEUsTEUs

2,0002,000 –– 2,999 2,999 TEUsTEUs

1,0001,000 –– 1,999 1,999 TEUsTEUs

<1,000<1,000 TEUsTEUs

0 50 100 150 200 Number of Orders

Source: 2004 Containerisation International Yearbook CopyrightCopyright ©© 20052005 APAP MollerMoller Odense Odense Shipyard Shipyard UltraUltra PostPost PanamaxPanamax VesselsVessels KNUDKNUD MAERSKMAERSK InIn thethe SuezSuez (Regina(Regina Class:Class: 6,0006,000 TEU)TEU) (Sovereign(Sovereign (S)(S) Class:Class: 6,6006,600 TEUs)TEUs)

TotalTotal SS ClassClass FleetFleet == 3131 vesselsvessels (Delivery(Delivery 2004)2004) CouldCould thethe lastlast vesselsvessels bebe super-sizedsuper-sized toto 10,50010,500 TEUsTEUs ????

19701970 IndustryIndustry Prediction:Prediction: “3,250“3,250 TEUTEU”” TheThe Reality:Reality: ReginaRegina MaerskMaersk 6,000 6,000 TEUTEU SovereignSovereign MaerskMaersk 6,600 6,600 TEUTEU 20-Wide20-Wide PlannedPlanned 8,000 8,000 TEUTEU Near Term Possible: 10,000 – 15,000 TEU (Suez-Class)

CopyrightCopyright ©© 20052005 January 7, 2004… Hapag-Lloyd’s new class of 8,600-TEU containerships by Hyundai Heavy Industries. Three 8,600-TEU "mega container ships," with the first to be delivered in 2007 and the remaining two in 2008. The 100,000 dwt ships will be 335 meters (1,099 feet) long, 43 meters (141 feet) wide, and a maximum speed of 25.2 knots

Per P&O Nedlloyd •15% Faster Port Productivity •84% Less Re-Stows •Less Damaged Boxes

AzipodAzipod SSPSSP PropulsorPropulsor EagleEagle ClassClass CruiseCruise SchottelSchottel / / SiemensSiemens VesselVessel CopyrightCopyright ©© 20052005 TheThe 15,00015,000 TEUTEU ContainershipContainership “…the“…the shipship isis aa flightflight ofof fancy…fancy… butbut suchsuch aa shipship isis withinwithin thethe currentcurrent statestate ofof thethe shipbuilder’sshipbuilder’s art…”art…”

R.R. G.G. McLellan,McLellan, P&OP&O ContainersContainers

LOA.LOA. == 400400 mm (1,312(1,312 ft.)ft.) DraftDraft == 1414 mm (46(46 ft.)ft.) BEAMBEAM == 6969 mm (226(226 ft.)ft.)

6-76-7 aboveabove deckdeck 10-1110-11 belowbelow deckdeck

28 Wide 28 Wide 1313 WideWide

2828 AcrossAcross PanamaxPanamax DimensionsDimensions

28-Wide28-Wide VesselVessel

•• ByBy 20102010 onon Asia-EuropeAsia-Europe TradeTrade RouteRoute •• 30%30% CheaperCheaperthan than 48004800 TEUTEU PanamaxPanamax Vessel,Vessel, primarilyprimarily duedue toto “Economies“Economies ofof Scale”Scale” •• US$40/TEUUS$40/TEU SavingsSavings

Source:Source: DynamarDynamar Consultancy, Consultancy, RotterdamRotterdam CopyrightCopyright ©© 20052005 EmergenceEmergence ofof NorthNorth AmericanAmerican FastFast FeederFeeder Short-SeaShort-Sea CoastalCoastal VesselsVessels

r: s ntie ort Fro er P ew all e N Sm Th Tier cond Se For

3,000 TEU Feeder Ship

10,000 to 15,000 TEU Mega Ship CopyrightCopyright ©© 20052005 EmergingEmerging ViableViable ContainerContainer OnOn BargeBarge CoastalCoastal ShippingShipping ConceptsConcepts && InlandInland IntermodalIntermodal PortPort PotentialPotential

Roads ed est Cong f of t of igh Fre ng Taki

CopyrightCopyright ©© 20052005 CopyrightCopyright ©© 20052005 CopyrightCopyright ©© 20052005 OneOne ofof thethe World’sWorld’s MostMost EfficientEfficient ContainerContainer PortPort -- Port Port ofof SingaporeSingapore

First Container Crane, Alameda, California

70' - 115' 70' - 115' 106' - 130' 61' - 65' - 61' 61' - 65' - 61' 82' 82'

50' 100' First Generation (1960s) Second Generation(1970s) (Cost $750,000) (Cost $2,400,000)

145' - 156' 120' 145' - 156' 170' 120' 100' 100'

100' 100' Third Generation Post Panamax (1986) Fourth Generation (Cost in 1986 - $3,600,000-6,000,000) Post Panamax Plus (2000 - ?) (Current(Current Cost - $5,000,000-8,000,000$5,000,000-8,000,000)) (Cost > $8,000,000)

12001200

10001000 33 XX 800800 Case I 600600 Case II 400400

200200 Number of Cranes Number of Number of Cranes Number of 00 20002000 2000-20042000-2004 2004-20082004-2008 2008-20122008-2012

Source:Source: OceanOcean ShippingShipping Consultants,Consultants, Dec.Dec. 19991999

22 - 24 Container Outreach

Longer Post-PanamaxPost-Panamax Longer Backreach OutreachOutreach Trolley Backreach Load: 50-65 LT “Dual Hoist 800 “DualCapable” Hoist Ft./Min. Hoist Hoist

Capable” Containers High 6 on Ship Deck 6 High Containers 6 High on Ship Deck

100' 270 Ft./Min. AutomationAutomation Trends:Trends: DigitalDigital Controls;Controls; Anti-SwayAnti-Sway System;System; Anti-SnagAnti-Snag System;System; Anti-CollisionAnti-Collision SystemSystem

US Navy Fast Frigate Circa 2035

NimitzNimitz Class Class CarrierCarrier

LOA:LOA:1040 1040 ft.ft. Beam:Beam:134 134 ft.ft. Speed:Speed: 30+ 30+ knotsknots (Classified)(Classified) Displacement:Displacement:91,487 91,487 tonstons PowerPower Plant:Plant:2 2 NuclearNuclear ReactorsReactors (280,000(280,000 shaftshaft HP)HP)

CVN-74 in a 14 Degree Roll During Sea Trials

CopyrightCopyright ©© 20052005 NewNew HighHigh SpeedSpeed RO/RORO/RO FastFast FeederFeeder ServiceService 45004500 TonTon DisplacementDisplacement ElectricElectric TrimaranTrimaran (DERA:(DERA: Britain’sBritain’s DefenseDefense EvaluationEvaluation andand ResearchResearch Agency)Agency)

The New Breed of Short Sea Shipping Vessels

(DERA(DERA RVRV Triton:Triton: $25$25 Million,Million, 135135 MM LOA,LOA, 3535 MM Beam,Beam, 4.54.5 MM Draft,Draft, 500500 NauticalNautical MileMile Source: DIMEX Navigation LLC Source: DIMEX Navigation LLC CopyrightCopyright ©© 20052005 HighHigh SpeedSpeed ShipsShips 40-6040-60 KnotsKnots FastShipFastShip IncorporatedIncorporated (FSI)(FSI)

CopyrightCopyright ©© 20052005 FastShipFastShip ServiceService CharacteristicsCharacteristics •• OceanOcean Speed:Speed:45 45 knotsknots(37 (37 operational)operational) •• Payload:Payload:10,000 10,000 Tons/2Tons/2 MillionMillion CubicCubic Ft.Ft. •• Design:Design:Monohull, Monohull, “Semi-Planing”“Semi-Planing” (SPMH)(SPMH) •• DWT:DWT:30,000 30,000 TonsTons •• Propulsion:Propulsion:8-GE 8-GE LM6000LM6000 MarineMarine GasGas TurbinesTurbines (CF6(CF6 AircraftAircraft EnginesEngines withwith MarineMarine DieselDiesel oror LNGLNG Fuel)Fuel) •• HighHigh SeakeepingSeakeeping Capabilities:Capabilities:40 40 Knots,Knots, 95%95% NorthNorth AtlanticAtlantic WeatherWeather withwith WavesWaves toto 2020 Ft.Ft.

SPM Hull Design Gas Turbine Water Jet

Source:Source: USDOTUSDOT FHWAFHWA FreiFreightght AnalysisAnalysis FrameworkFramework CopyrightCopyright ©© 20052005 20202020 TruckTruck FreightFreight FlowsFlows High-ValueHigh-Value && TimeTime SensitiveSensitive ProductsProducts (in(in Tons)Tons)

Source:Source: USDOTUSDOT FHWAFHWA FreiFreightght AnalysisAnalysis FrameworkFramework CopyrightCopyright ©© 20052005 20202020 NAFTANAFTA US/MexicoUS/Mexico TruckTruck TrafficTraffic USUS HighwayHighway NetworkNetwork (Tons)(Tons) 20202020 NAFTANAFTA US/CanadaUS/Canada TruckTruck TrafficTraffic USUS HighwayHighway NetworkNetwork (Tons)(Tons)

CopyrightCopyright ©© 20052005 TheThechemicalchemical RailroadRailroad Industry…Industry… traintrain SinceSince thethe StaggersStaggers Act:Act: goinggoing35% overover less trackaa bridgebridge 32%goesgoes fewer locomotives here.here. 27% fewer railcars 60% fewer employees But: well over 50% more freight! ************ 2020 Forecast of US Rail Traffic (By Origins in Millions of Tons)

3,0003,000 2,5002,500 48%48% IncreaseIncrease 2,0002,000 1,5001,500 1,0001,000 500500 00 19801980 19851985 19901990 19951995 19991999 20102010 20202020

Source:Source: FHWAFHWA Multi-MoMulti-Modaldal FreightFreight Analysis,Analysis, FrameworkFramework ProjectProject usingusing RReebieeebie AssociatesAssociates 19981998 datadata

3%3% DomesticDomestic WaterWater 3%3% PipelinePipeline SmallSmall PackagePackage 12%12% 61%61% Surface/AirSurface/Air TruckloadTruckload

11%11% RailRail CarloadCarload

Intermodal 3% Intermodal 7%7% 3% LTLLTL TruckingTrucking

Source:Source: TransportationTransportation inin AmericaAmerica 19981998 CopyrightCopyright ©© 20052005 WeeklyWeekly EastboundEastbound Double-StackDouble-Stack ServicesServices —— April April 19841984 (1(1 Set)Set)

ChicagoChicago 11

LA/LongLA/Long BeachBeach

Source:Source: Mercer MercerMercerMercer ManagementManagement ConsultingConsulting

Seattle/Tacoma/ Portland Seattle/Tacoma/ Portland 51 New Montreal Englan Newd England Toronto Chicago New York Salt34 Lake City Detroit New York Chicago Oakland Salt Lake City Columbus Oakland 6262 Cincinnati St Lo is Baltimore Kansas City uCincinnatis Columbus LA/Long Beach St. Loui HamptonHampton Kansas City RoadsRoads 4545 Charlotte LA/Long Beach Memphis Atlantatlanta Charleston 4444 Dallas Memphis Dallas 55 New Savannah Orleans Jacksonville New Houston Orleans Houston Miami Mexico Cit Mexico Cityy

Source:Source: Mercer MercerMercerMercer ManagementManagement ConsultingConsulting

Boston0.1 Omaha Chicago Boston Salt SaltLake Lake City City Omaha Chicago New York/ 1.4 New York/2.1 Oakland St. Louis Baltimore Oakland St. Louis Baltimore KansasKansas City City Hampton Hampton Roads 0.9 Los4.1 Angeles/Los Angeles/ MemphisMemphis Roads LongLong Beach Beach Atlanta Charleston/ Dallas/Dallas/ CN/ICCN/IC Atlanta Charleston/Savannah Ft.Ft. WorthWorth Savannah0.8 Existing Port Intermodal Volumes Miami/ NewNew Miami/Everglades Houston Orleans 4.1 Millions of TEUs Everglades0.3 0.4* Existing Rail Flow NS/CSX/CONRAILNNS/CSX/CONRAILN S/CSS/CSXX/CO/CONRAINRAILL

* for the region Source:Source: Double-StackDouble-Stack ContainerContainer Systems:Systems: ImplicationsImplications forfor U.S.U.S. RailroadsRailroads andand Ports,Ports, U.S.U.S. DOT/VZM/TranSystemsDOT/VZM/TranSystems CopyrightCopyright ©© 20052005 U.S.U.S. Double-StackedDouble-Stacked TrainTrain SystemSystem

East-West 10,000 ft Train Bypass

CopyrightCopyright ©© 20052005 CopyrightCopyright ©© 20052005 AA 10,000 TEUTEUMega-Container VesselVessel CanCan ProduceProduce HighHigh IntermodalIntermodal RailRail VolumesVolumes (One(One WeeklyWeekly VesselVessel Call)Call)

IMPORTIMPORT EXPORTEXPORT

10,00010,000 TEUTEU VesselVessel Vessel Capacity 10,000 TEU (5,892(5,892 Units)Units) 13.4 Double Stacked Trains

13.4 DoubleDouble StackedStacked TrainsTrains 75% Intermodal Split

CopyrightCopyright ©© 20052005 ContainerContainer Dwell:Dwell: The Average Length of Time an Average Container Remains on the Terminal U.S.U.S. MarineMarine ContainerContainer TerminalTerminal Dwell:Dwell: 6 to 8 Days (Average) U.S.U.S. IntermodalIntermodal RailRail TerminalTerminal Dwell:Dwell:

1 1 /2 - 2 Day (Average)

WhenWhen YouYou ReduceReduce TerminalTerminal DwellDwell byby OneOne HalfHalf You Double the Terminal Throughput…without Building! DomesticDomestic IntermodalIntermodal ContainerizationContainerization Domestic Double Stack Train 53’ 48’ 53’

“Loading“Loading andand dischargingdischarging aa 5,0005,000 TEUTEU shipship involvesinvolves closeclose toto 40,00040,000 documentsdocumentsand and somesome 6,0006,000 toto 7,0007,000 customscustoms transactions…”transactions…” “The“The averageaverage F.O.B.F.O.B. valuevalue isis U.S.U.S. $60,000$60,000 perper TEU”TEU”

C.C. C.C. TungTung ChairmanChairman andand CEOCEO OrientOrient OverseasOverseas Ltd.Ltd. (OOCL)(OOCL)

CopyrightCopyright ©© 20052005 InformationInformation TechnologyTechnology (IT)(IT) AdvancesAdvances && ImpactsImpacts InformationInformation TechnologiesTechnologies (IT)(IT) andand BB ToTo BB (business(business toto business)business) EE CommerceCommerce (internet)(internet) advancesadvances willwill forceforce dramaticdramatic fundamentalfundamental changeschanges inin thethe shippingshipping industry.industry. a)a) 24hr24hr -- 7day 7day OperationsOperations willwill bebe thethe normnorm b)b) ServiceService Redesign:Redesign: frequent,frequent, fasterfaster cargocargo delivery,delivery, whenwhen thethe customercustomer placesplaces anan orderorder

NaturalNatural SpeechSpeech InputInput t t t t n n n n RealReal TimeTime GraphicsGraphics e e e e m m m m t t t t DecisionDecision SupportSupport SystemSystem s s s s e e e e ComputerComputer DirectedDirected OperationsOperations v v v v n n n n I I I I InteractiveInteractive ColorColor GraphicsGraphics n n n n o o o o RealReal TimeTime TrackingTracking n n n n r r r r ElectronicElectronic DataData InterchangeInterchange

u Electronic Data Interchange u u u t t t t e e e e BaseBase LineLine T.O.S.T.O.S. R R R R DataData ManagementManagement SystemsSystems

AA leaderleader inin MarineMarine TerminalTerminal SystemsSystems IntegrationIntegration

OASISOASIS isis thethe leadingleading intermodalintermodal terminalterminal controlcontrol systemsystem inin thethe world.world. InstalledInstalled base:base: 8383 intermodalintermodal terminalsterminals 1414 millionmillion liftslifts perper yearyear 2525 millionmillion gategate movesmoves perper yearyear

DriverDriver AutomatedAutomated GateGate (DAG)(DAG) Source:Source: OptimizationOptimization AlternativesAlternatives Limited,Limited, Inc.Inc. CopyrightCopyright ©© 20052005 EvolvingEvolving InformationInformation Concepts…Concepts… VirginiaVirginia PortPort AuthorityAuthority (VPA)(VPA) NorfolkNorfolk InternationalInternational TerminalTerminal (NIT)(NIT)

“Live Gate” Just-In-Time Scheduling of Truck Pick Ups CopyrightCopyright ©© 20052005 USDODUSDOD AgileAgile PortPort InformationInformation TechnologyTechnology (IT)(IT) DevelopmentsDevelopments TheThe AgileAgile PortPort ConceptConcept isis notnot aa newnew technologytechnology……

…It…It isis aa wayway ofof managingmanaging andand organizingorganizing informationinformation toto reducereduce containercontainer portport terminalterminal dwelldwell timetime && increaseincrease terminalterminal capacity.capacity.

CopyrightCopyright ©© 20052005 BetterBetter organized,organized, accurateaccurate andand timelytimely informationinformation betweenbetween shipship andand railrail cancan increaseincrease thethe “velocity”“velocity” ofof aa containercontainer throughthrough aa terminalterminal withoutwithout changingchanging equipment,equipment, managementmanagement oror labor.labor.

ConsistConsist DataData ConsistConsist DataData

Data/InfoData/Info DoubleDouble StackedStacked Container Container ManagementManagement TrainTrain VesselVessel

MajorMajor TerminalTerminal && SystemsSystems BenefitsBenefits

ParticipantsParticipants CCDoTTCCDoTT USDOTUSDOT MARAD MARAD USDODUSDOD USTRANSCOMUSTRANSCOM ILWUILWU PortPort ofof TacomaTacoma HyundaiHyundai WashingtonWashington UnitedUnited TerminalsTerminals TranSystemsTranSystems AutomationAutomation AssociatesAssociates

Hyundai Terminal Washington United Terminals Port of Tacoma July 2003

Potential: Doubling the Terminal Capacity without Building Anything

CopyrightCopyright ©© 20052005 InIn MarchMarch 20032003 TheThe ILWUILWU PresidentPresident andand TheThe ILWUILWU CoastCoast CommitteeCommittee AgreedAgreed toto becomebecome aa keykey stakeholderstakeholder inin andand activeactive participantparticipant of:of: TheThe AgileAgile PortPort DemonstrationDemonstration ProjectProject PortPort ofof TacomaTacoma CopyrightCopyright ©© 20052005 MarineMarine TerminalTerminal ManagementManagement TrainingTraining ProgramProgram

JanuaryJanuary 24,24, 20052005 TopicTopic II MARINE TERMINAL DESIGN AND CONTAINER ThankThank YouYou HANDLING SYSTEMS M. John Vickerman Principal Norfolk, Virginia