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PLENTY OF ASSETS Philadelphia Permit us some Primed for alliteration. Growth PHILADELPHIA IS: PHILADELPHIA is a multimodal port in every sense of the word. It retains its mastery and market share in the perishables trades. PROXIMATE Container volumes moving through the Port of Philadelphia are on the rise and projected to continue to climb. Breakbulk and project PRODUCTIVE cargoes regularly appear on the port’s manifests. The River remains the vital entry point for refineries and other liquid bulk users. PRISTINE COMPETITORS BEWARE. While proud of its track record, PROLIFIC Philadelphia is most certainly focused on the future. Infrastructure improvements — including channel deepening, surface transportation enhancements and landside investments in PREPARED equipment and facilities — and a single-minded approach to business development among all port players are the key factors PROGRESSIVE in Philly’s growth equation. Factor in strategic location and experienced, eager labor, and the port has all the tools to convert PROACTIVE its projections to reality. n All articles written by John Powers.

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PROXIMATE Distribution Centers Drawn to Location, Infrastructure and Market Access

rom the earliest days of the what became the . exploration of the New World, This luck of geography places F vessels seeking the shortest route Philadelphia in the center of the action. between Europe and North America Tom Mutz, director – global business found their way to its north and mid- development, Penn Warehousing and Atlantic coastlines. Notwithstanding the Distribution, detailed this advantage.

THE JOURNAL OF COMMERCE SPECIAL ADVERTISING SUPPLEMENT OF THE JOURNAL subsequent westward migration across “Simply stated, there are many astute America, the Northeast was and has supply chain managers throughout the remained the largest population hub in world that recognize where the greatest

A DISTRIBUTION CENTER IN PHILADELPHIA CAN REACH MORE THAN 50 PERCENT OF THE U.S. POPULATION WITHIN TWO DAYS. proportion of their supply chain costs are, and that, more often than not, is within the inland distribution segment. Therefore, your port of entry or exit should provide an advantage to customers to or from the production location. Philadelphia is strategically located in the middle of the coastal populace, when considering the northeastern and mid-Atlantic regions. We have the ability to distribute products within 48 to 72 hours to almost 70 percent of the Canadian and U.S. population. We are a half mile to the interstate highway system and have two Class I rail carriers, each serving our terminal,” he said. The port’s location is a major driver in the commercial real estate endeavors of NAI Mertz, Vice President Roy Kardon said. “In the last two years, we have concluded more than 300 transactions as companies look to acquire or dispose of real estate. The greater Philadelphia marketplace is an excellent logistics corridor servicing the Northeast. Philadelphia has become

◀ Philadelphia’s Top Distribution Centers

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a major player in the port business due to one-day transit of the port, in by two Class I railroads — CSX and Norfolk the proximity to different logistics points, , , Maryland Southern. The availability of industrial land venues and infrastructure.” and Delaware. Beyond this immediate parcels and relatively cheaper real estate Regular shipments among Philadelphia region, Philadelphia enjoys rail-mileage compared to neighboring states offers a shippers define the Philadelphia Regional advantages to distribution hubs in major very attractive location to DC operators.” Port Authority’s extensive hinterland. “We metro areas such as Chicago, Columbus Cost benefits of a distribution center have a 10-hour or two-day delivery time by and St. Louis. Philly terminals have rapid, near Philadelphia extend beyond proximity truck to half of the United States markets. uncongested access to major highway to markets. “Due to expensive land costs, ... We regularly service a market extending arteries, including Interstate 95 and excessive labor rates and high taxes in west as far as Illinois, as far south as Interstate 76, and more than 300 motor other regions, we have seen in recent Kentucky, and as far north as Canada,” carriers provide comprehensive and years an effort to build distribution centers said PRPA Chairman Jerry Sweeney. competitive trucking. closer to the Port of Philadelphia. Big box Philadelphia’s extensive roster of Dr. Neha Mittal is an international retailers, online merchants, manufacturers breakbulk commodities also benefits from trade and transportation researcher at and others have been moving into southern location. “Regarding commodities such Temple University. Her studies reveal, New Jersey, the Lehigh Valley and as wood pulp, as well as steel, machinery “Philadelphia’s excellent central location Central Pennsylvania. In other words, they and projects, the region is close to key in the northeast corridor, coupled with a have been moving closer to the Port of manufacturers, distributors, processors good transportation network in the state, Philadelphia,” Sweeney said and end users. So given the entire nexus has provided businesses with a strategic Colliers International’s industrial of logistics, marine terminals in the advantage in distribution center operations. department leases and sells warehousing Greater Philadelphia region make sense,” A DC in Philadelphia can reach 25 percent and distribution facilities, and Senior Vice Stevedores President of the country’s population within a five- President Richard Gorodesky offered Robert Palaima said. hour drive and more than 50 percent of his observations: “Philadelphia works as Infrastructure and market access the nation’s population within a two-day a hub-and-spoke environment, with the make the city’s hinterland a prime site truck driving distance. Its international confluence of the major rail providers for distribution centers. More than airport connects to 87 domestic and 36 immediately adjacent to the ports. We 300 distribution facilities are within international destinations. Its port is served generally consider the New York-to-

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Washington, D.C./I-95 corridor and the lays claim to an even larger distribution Forest products are a core commodity east-west Pennsylvania Turnpike corridor network. “Much of the product we receive for the Port of Philadelphia, and CMS to be our bread and butter for same-day in Philadelphia is literally shipped all over Transportation has been helping its distribution points.” The vital signs for the country and Canada through our customers expedite shipments for more distribution center business are trending sister company Produce Sensation. This than 25 years. Clayton Manthorpe, positively, he said. “Philadelphia’s is facilitated by the excellent logistics company president, discussed how his warehouses have enjoyed low and facilities located near the port,” President clients rely on Philadelphia for timely decreasing vacancy rates over the last John Vena said. deliveries. “A large part of our ocean several years. Until very recently, new “Within 100 miles of the Port of business is pulp from South America. construction has been limited to build-to- Philadelphia, there are 40 to 50 million We have seen our pulp clients benefit suits. Recent demand has caused some square feet of distribution center by moving their cargo through our spec construction to begin, but certainly warehousing. Along the I-81 corridor, port versus other regional ports. The not excessively. We see continued there are 10 to 15 million square feet efficiencies at the Port of Philadelphia balance in our markets between landlord between Shippensburg and Carlisle help them keep costs down. From here, and tenant supply and demand,” he said. alone,” Keith Walborn, agent for Evans they are able to easily supply their Produce specialist John Vena Inc. Delivery, said. customers covering most of the eastern half of the United States. At our facility,

THE JOURNAL OF COMMERCE SPECIAL ADVERTISING SUPPLEMENT OF THE JOURNAL we are filling orders as far away as the Gulf states, Wisconsin and up into 40 TO 50 MILLION SQUARE FEET OF Canada,” he said. Port productivity and inland delivery INTERNATIONAL DC WAREHOUSING ARE velocity make Philadelphia the rational choice for DC operators, Mutz said. LOCATED WITHIN 100 MILES OF THE PORT. “There are many DCs out in the Carlisle, Harrisburg and Route 78/Route 80 corridors that serve all beneficial cargo owners quite well. That is whether they are using Baltimore, Port Elizabeth (New Jersey) or the Port of Philadelphia. However, the area that must be explored is which port will provide the efficiencies, and what are the underlying inland transportation costs to those respective DC zones? We believe the Port of Philadelphia is the best solution.” Distribution center operators in the Northeast can opt for a number of ports along the eastern seaboard. With increasing frequency, they opt to “Ship Philly First” because of:

— Uncongested access to key highway and rail arteries. — Unparalleled terminal and labor productivity. — Shorter terminal turn times. — More productive use of equipment. — Lower-cost proximity to freight destinations and origins. — A port community that understands what is needed and performs accordingly. n

6A www.philaport.com APRIL 18.2016 ORT OF PHILADELPHIA SPECIAL ADVERTISING SUPPLEMENT OF THE JOURNAL OF COMMERCE A LETTER FROM GOVERNOR TOM WOLF

As my administration works to improve the transportation infrastructure of Pennsylvania, we want the Commonwealth to become the keystone of your faster, more efficient supply chain. The improvements we are making to our roads, bridges, and ports will provide many benefits for cargo transportation. At the Port of Philadelphia, we are working to make the following substantial changes:

• We are deepening the Main Channel of the Delaware River to 45 feet. Through the work of Philadelphia Regional Port Authority staff and our partners at the U.S. Army Corps of Engineers, we have completed 85% of the project, and expect to finish the job in 2017. Channel deepening will allow larger vessels to come to the Port of Philadelphia, providing better opportunities for manufacturers and farmers in Pennsylvania, the Eastern USA and Canada to reach global markets. • Equally important is our 196-acre Southport Marine Terminal Complex. We have completed environmental remediation, finished initial engineering work, built a road through the complex, and are now seeking a private sector partner to complete and operate this unique set of facilities. Southport gives the Port of Philadelphia room to grow. • In addition to new infrastructure, PRPA, along with our marine terminal operators, have attracted new steamship lines to the Port. These include APL, NYK, SeaLand and Yang Ming, which came to our Packer Avenue Marine Terminal, and MSC, which significantly improved their European service. Fibria Celulose has also come to Philadelphia, bringing 360,000 tons of paper pulp to our Tioga Marine Terminal. • Finally, we are making significant progress with my administration’s strategic plan to ensure long-term stability at the Port of Philadelphia. We have launched a national search for a new executive director with a proven track record of successful port development. I have also directed PennDOT to conduct a study to determine the best use/economic feasibility of the port.

Our efforts of the past few years are bearing fruit in more cargo – and more jobs – for Pennsylvania workers. Important Pennsylvania exporters such as Cronimet in Aliquippa, East Penn Manufacturing in Topton, Hershey Foods in Hershey, JLG in McConnellsburg, Mack Trucks in Macungie, and PPG in Pittsburgh use the Port of Philadelphia to safely and efficiently ship their valuable cargos to global markets.

Please see the Philadelphia Regional Port Authority website at www.philaport.com to learn how Pennsylvania can be the keystone for your improved supply chain, and to learn of the improvements we are making to Pennsylvania’s international seaport.

Tom Wolf Governor of Pennsylvania

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PRODUCTIVE Commitment, Cooperation Set Port Apart

ongested, inflexible, combative, turnaround at all terminals equates to construction materials and forest products. expensive and unproductive optimal equipment usage. Care adjectives you do not hear COOPERATIVE. Logistics is the describing the Port of Philadelphia. In FLEXIBLE. The International ultimate multiplayer game. Shippers, fact, it is quite the contrary. Longshoremen’s Association Local 1291 terminal operators, labor, ocean and offers 19 daily start times versus four in surface carriers, government agencies, UNCONGESTED. No vessels competing ports. For port customers, third-party logistics providers, broker/ on the hook awaiting a berth. Ease this translates into lower transit costs. forwarders, beneficial cargo owners and of access for both rail and truck Beyond its capacity to expedite containers, governmental entities present a unified shipments in the form of on-dock Philadelphia boasts an imposing array of front in Philadelphia.

OF THE JOURNAL OF COMMERCE THE JOURNAL SPECIAL ADVERTISING SUPPLEMENT OF rail and easy ingress and egress to equipment and carefully honed handling “Labor understands you have to and from major interstates and other skills for a variety of niche cargoes come to the table to attract and maintain highways. Unparalleled speed of truck ranging from perishables and breakbulk to our business. As an example, we have

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not had a labor strike in 20 years. and our terminal operators,” PRPA In some competing ports, labor is Chairman Jerry Sweeney said. unresponsive to the trade business community. Simply stated, they have PHILLY FEATURES INCLUDE: too much work, and demand exceeds — Cost effective. supply, so labor enforces its will as to — Gross production as high as rates and what they will and won’t do. 40 container moves per hour. Fortunately for us, the opposite is the — Willing, capable labor. case in Philadelphia,” Holt Logistics’ — Aggressive pricing for terminal Director of Fruit Marketing Thomas tariffs and port services. Mastromarco said. — Higher cross-terminal velocity. The Philadelphia Regional — Shorter distances and fewer hours Port Authority lists a number of to inland destinations and origins willing partners that factor into its = lower delivered costs. growth equation. “Our port’s future — No container assessment is incredibly bright because of charge, which can be as much the alignment between labor, the as $100 per box at other ports. private sector, the public sector and — Six fewer holidays per year ourselves. Our labor is committed than in competing ports = fewer to growing the port, and they work premium-pay labor hours. cooperatively with management — No ILA pension withdrawal liability.

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Dependable Distribution Services ‘supersacks.’ Another may want to PRODUCTIVE. “Productivity is helps its cocoa customers control receive them loose in a special truck. definitely one of Philadelphia’s greatest transportation costs by transferring A third may want them by rail. We solve strengths. Our longshoremen are critical functions from consignee sites many of the costly, labor-intensive hard-working, conscientious and do to Dependable facilities adjacent to operations at the processors’ locations a great job of representing the Port of the port. “Our customized attention on by shifting these costs and creating Philadelphia. This can-do attitude also one product has allowed us to be the value at the port, reducing total costs extends to the inland value-add locations trusted partner for a large share of the through the supply chain,” President where good labor excels in getting market. We unload the beans, store Harvey Weiner said. their assignments done,” Fred Sorbello, them in our food-grade warehousing and inventory them with our technology. Equally important, we transfer the cocoa LABOR EDGE: to the format that is most convenient for the end user, based on the receptive 19 DAILY START TIMES VERSUS FOUR capabilities of their individual production sites. One customer may want to AT COMPETING PORTS. receive the beans in large, 2,000 pound, THE JOURNAL OF COMMERCE SPECIAL ADVERTISING SUPPLEMENT OF THE JOURNAL

Packer Avenue Marine Terminal (left) and Philadelphia Auto Processing Facility (right).

10A www.philaport.com APRIL 18.2016 CEO of Mullica Hill Group, said. Agro Merchants’ CEO Neal Rider added, “Philadelphia’s a very efficient port relative to its competitors in the area. We find it to be highly customer friendly and are very happy with the relationship we have forged with the PRPA.” In-port labor plays the singular, most pivotal role in the physical expediting of cargo between vessel and quay. Longshoremen clearly understand the importance of their efforts in expediting cargo to destination. “It’s about customer service. These big ships are expensive to operate, and so the steamship lines want them to be moving. Their goal — and our goal — is in and out SPECIAL ADVERTISING SUPPLEMENT OF THE JOURNAL OF COMMERCE of port fast,” Boise Butler, president, transloading volumes. I would be remiss

International Longshoremen’s if I didn’t mention the advantages of our OF PHILADELPHIA ORT Association Local 1291, said. “Our facility being adjacent to Packer Avenue Philadelphia labor is more flexible Marine Terminal and our ability to cost- with start times, weather conditions, effectively and timely dray overweight holidays and more. If we provide containers.” more start times, the ship gets For imports of perishables, the port worked quicker, and it can get on meets John Vena Inc.’s demand for the to the next port. That helps the fastest possible transit. Historically, steamship line stay on schedule. Vena has not found this to be the case We have fewer non-work holidays in other locales. “Clearing containers than our neighboring ports. We also in Philadelphia is an operational dream. are willing to work with the terminal Once our containers are released, we operators to extend gate hours can actually schedule the arrival at the if necessary to get the job done. intended destination. In other ports, we ILA labor is a major contributor to are at the mercy of variables over which Philadelphia’s high productivity.” we have no influence. In those locations, Penn Warehousing’s Tom wait times are intolerable and cost Mutz, director – global business money and time,” he said. development, concurred that Philadelphia’s lengthy experience in Philadelphia’s ability to out-produce its key commodity sectors results in a nearby competing ports is a major workforce particularly well-attuned to tactical advantage. “I believe that the handling demands of its particular each port has its unique advantages cargo mix. “The ILA does have and challenges. Port Elizabeth is experience, we do have specialization, really not a breakbulk port (aside especially in our major cargo categories from roll-on, roll-off), so the Delaware such as perishables, forest products, River and our terminal directly benefit ro-ro, steel and project cargos, and from that. We do not have congestion we know how to use the equipment. In in the Port of Philadelphia, and we addition, we have the right training, and have certainly capitalized on that. we have a ‘hungry’ attitude. We know Simply stated, this has positively we are not the biggest port, so we have impacted our container handling and to be the best,” Butler said. n

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boxes, compared to the 100 million boxes PRISTINE we currently handle. Originally, the main origin was Chile, and then imports from Argentina and Brazil commenced. Now, A Protected Cold Chain fruit comes in from 20-plus countries all around the world. The growth of this n the spectrum of commodities, terminal turnaround, commodity-specific business is reflected by the 20 to 30 no sector commands more experience, proximate cold storage facilities within 50 miles of the port. This O attention to detail than facilities, on-site federal inspections growth can be attributed to the vision of perishables. The consequences of and a roster of viable truckers and rail the people involved in the business since failures along the supply chain range from providers. Nowhere is this mix more the beginning, our steady growth and expensive to disastrous. Unfortunately, the apparent that the preeminent perishables infrastructure that grew around it,” he said. opportunities for in-transit glitches abound. handling port on the U.S. eastern Because days in transit are such a Delivery delays, rough handling and faulty seaboard, Philadelphia. critical component of the perishables temperature control contribute to product Thomas Mastromarco, director of fruit shipment cycle, a centralized distribution degradation, spoilage, costly disposal and marketing for Holt Logistics, detailed the location becomes even more critical. in the worst case, consumer illness. development of Philly’s perishables sector. “Philadelphia has become THE hub for Any port aspiring to participate in the “This business evolved over many years. distribution of perishables on the East perishables trade must meet and maintain Fruit imports began in the late 1970s and Coast with reaches into the South, the a strict set of operating standards. These early 1980s with fewer than 1,000 boxes Caribbean, the Midwest and Canada. This benchmarks comprise factors such as of fruit, and grew to a couple of thousand has been a steady evolution; early on

DELAWARE RIVER STEVEDORES, INC. Corporate Offices 441 North 5th Street, Suite 210 Philadelphia, PA 19123 215-440-4100 DRS www.d-r-s.com

Delaware River Stevedores, Inc. (DRS) is one of the largest and most capable cargo handling companies in the mid-Atlantic region of the United States. Operating at multiple locations in the ports of Camden, Philadelphia and Wilmington, DE, DRS offers a deep pool of experienced waterfront labor and maintains a wide array of specialized equipment and stevedoring gear for breakbulk, dry bulk, containerized and ro/ro cargoes. The company is a leader in steel, plywood, wood pulp, cocoa beans, projects, heavy lifts and automobiles. Our customers are at the core of everything we do. Facilities Port of Wilmington, DE Tioga Marine Terminal Joseph A. Balzano Marine Terminal 1 Hausel Rd. 3451 North Delaware Ave 101 Joseph A. Balzano Blvd. Wilmington, DE 19801 Philadelphia, PA 19134 Camden, NJ 08103 (302) 655-6315 (215) 790-4447 (856) 541-2773

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the agricultural base of apples, peaches, cranberries, vegetables, blueberries and mushrooms led to a strong base of APPROXIMATELY 90 PERCENT OF logistic services such as transportation, THE U.S. COCOA BEAN WAREHOUSING warehousing and repacking. The Philadelphia region is also ideally located IS LOCATED IN THE PHILLY AREA. with easy access to the massive consumer base residing from Virginia to Boston,” Tom Kovacevich, general manager, T. M. Kovacevich – Philadelphia, said. Tim Brown, president of Horizon Stevedoring, expanded on the port’s reach. “The entire Delaware River Basin is globally recognized for the handling of perishables. If there was one factor that drives our reputation it would be our ability to provide an inland distribution

THE JOURNAL OF COMMERCE SPECIAL ADVERTISING SUPPLEMENT OF THE JOURNAL process that is unrivaled in the United States. We are capable of providing distribution to over two-thirds of the Canadian and U.S. population within a 48 to 72-hour window. Certainly, the more than 6 million square feet of temperature- control warehousing in the immediate Port of Philadelphia area provides an additional value-added proposition for products that will not be distributed more timely after vessel discharging.” Meat imports comprise a significant capacity continues to be added, and there As an example, we recently initiated portion of vessel manifests arriving in is ample land available to do so. import shipments of clementines from Philadelphia. The shipments originate Agro Merchants is the parent Morocco. These were going to other primarily in Australia, New Zealand, company for Philadelphia-based Mullica ports, but we went to Morocco, made the Uruguay, Brazil and Chile. Testament to Hill Group and Lucca Freezer and Cold contacts and negotiated the relocation of the volumes moving in this trade are the Storage. CEO Neal Rider summarized the the business. These shipments arrived for 13 U.S. Department of Agriculture-certified company’s rationale for these acquisitions. the first time this year.” meat inspection houses in the immediate “Philadelphia is the gateway into one of Mullica Hill Group’s CEO Fred Philadelphia area. Vegetables, seafood and the largest metro markets in the country. Sorbello believes that the key to the artisan breads are additional examples We were attracted by the services already port’s success lies in its approach to of commodities benefiting from the established for the products we’re the perishables sector. “The advantage perishables infrastructure. interested in, specifically agriculturals and Philly has over competing ports is in the SeaLand’s new weekly services protein-based products. The existing flows value adds provided by our port services offering connections to Mexico, Colombia, for retail, wholesale, food services and entities. We view our job as making Guatemala, Honduras and Panama provide club business in the Northeast, Boston, products ready for retail consumption. evidence of the continued evolution of Philadelphia and New York were already in The days of merely handling and shipping these trades. The new rotations provide place. From a transportation perspective, on demand are antiquated. We see our mid-week arrivals for fresh fruit and we want to bring these products in as close job as fast tracking from receipt to final frozen products. Philadelphia augments as possible to these ultimate destinations. destination for all perishables.” its handling capacity for temperature- Philadelphia is a logical hub for us.” Imports from Chile remain a key sensitive goods with 1,800 reefer plugs Mastromarco provided a case study component of the Philadelphia perishables and 320,000 square feet of cold storage on how the port continues to expand its profile. Since 1988, the Chilean and space on terminal. Port interests are quick share of the perishables trade. “We are American Chamber of Commerce to point out that additional additional actively involved in outreach marketing. of Greater Philadelphia has fostered

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commercial and trade relations with Couple this with the wealth and depth of When it comes to the importation of Chile. The CACC facilitates connection of knowledge on handling the needs of this cocoa beans, to describe Philadelphia’s businesses, entrepreneurs and investors by industry and you have the enduring bond position as a niche would be woefully linking them with the appropriate individuals that exists today,” she said. inadequate. “In the cocoa segment, and organizations such as Pro Chile or the Philadelphia provides a growth Dependable Distribution Services Chilean Fresh Fruit Association. environment for firms of all sizes. “John has seen growth in the percentage of CACC Director Christina Lista is a firm Vena Inc. is a small company, and in cocoa beans entering the U.S. via the proponent of the port. “The Philly region order to be successful, we need to have ports of greater Philadelphia. We now is in its fourth decade of partnership responsive, reliable trading partners handle about 90 percent of all cocoa with the Chilean perishables export at the port. We have found them in the beans entering the United States,” DDS industry. During this time, the CACC cuss brokers and service providers in President Harvey Weiner said. and its members have forged enduring Philadelphia. In addition, we find it to be DDS operates Pier 84, the leading relationships with producers, exporters less expensive to handle our container cocoa terminal in the United States. That and shipping lines involved in this dynamic freight due to our proximity to the port location boasts 540,000 square feet of business, often serving as advocates and and cold storage facilities, and the relative on-dock storage served by dockside rail. representatives on issues affecting the lack of highway and port congestion in The firm is a true value-added provider trade. Philadelphia’s central location, with general. In reality, the Philadelphia area with comprehensive services comprising

THE JOURNAL OF COMMERCE SPECIAL ADVERTISING SUPPLEMENT OF THE JOURNAL the ability to reach over two-thirds of the is a transportation hub with access to stevedoring, warehousing, de-bagging, U.S. population within one to two days, is trucks going literally all over the country,” sampling and transportation services. The also a strong driver for a solid relationship. President John Vena said. company receives more than 150,000 tons of cocoa beans each year. It has more than 2 million square feet of certified cocoa warehousing space in the immediate area. Michael Lang, corporate logistics manager for Blommer Chocolate, provided a rationale for Philly’s pivotal role in the cocoa trades. “Philadelphia is the cocoa capital of North America with most of the major processors located within 80 miles. As a large cocoa processor it’s just logical to build an efficient supply chain in the Philadelphia area. Philadelphia is close to one of our major plants in East Greenville, Pennsylvania. In addition, it’s close from the countries of origin and affords the immediate-proximity warehouses and rail heads to resourcefully get our cargo to our other North American plants.” Most of the beans originate in the Ivory Coast, Ghana and Nigeria. Additionally, others arrive from Ecuador and the Dominican Republic, with smaller amounts from Central America. Beans transiting Philadelphia do move as far as the Midwest, Canada and along the U.S. East Coast. However, they are primarily earmarked for grinding facilities and chocolate factories located nearby. Asked why Philadelphia has become such an epicenter for cocoa beans, Weiner summarized, “We’ve made the

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right building and equipment investments at Pier 84, and we have the experience DAYS IN TRANSIT ARE A in handling the particular needs of cocoa beans. Also, about two-thirds of the cocoa CRITICAL COMPONENT OF THE grinding companies are located within a day’s drive of Philadelphia. In addition, PERISHABLES SHIPMENT CYCLE. about 90 percent of the cocoa bean warehousing in the United States is located in the Philadelphia area. Finally, we are part “The Philadelphia Wholesale Produce venture is a joint public-private partnership of the Intercontinental Exchange, which is Market, a 678,000-square-foot, state- facilitated by an infusion of $152 million in the largest global market for cocoa. ICE of-the-art behemoth in southwest Commonwealth of Pennsylvania funds. allows cocoa buyers and sellers to trade Philadelphia, houses the largest It is the world’s largest fully enclosed, product globally and virtually, using trusted, continuous cold chain in the world. The fully refrigerated wholesale produce certified transportation service providers. PRPA is the landlord of the property, terminal. The cold chain at PWPM is Philadelphia is an ICE-certified port, and the 2011 opening of which preserved preserved by 224 sealed dock doors Pier 84 is an ICE-certified facility, giving thousands of jobs in one of the great that surround the building’s perimeter, cocoa shippers added confidence.” Philadelphia legacies. The outcomes were allowing the entire loading dock and There is no greater single symbol of more than $1.5 billion in sales annually, sales floor to be continuously kept Philadelphia’s ascendancy in the global 25 produce firms and 1,500 employees,” at 50°F all day. Trailers are snugged perishables trades than the Philadelphia PRPA Director of Strategic Planning and against weather-tight loading dock seals, Wholesale Produce Market. Development Nicholas Walsh said. The protecting produce as it moves across the

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cool loading dock to or from refrigerated warehousing. Temperatures within PROLIFIC each merchant’s individual refrigerated warehouse are commodity adjusted. Merchants at the market carry a full Cargo Diversity Keeps line of fruits and vegetables and serve all types of food service and grocery Volume Projections High businesses. Additionally, the facility is open to the general public. Receiving and selling hundreds of truckloads of fresh produce on a weekly basis, PWPM boasts MORE THAN 6.6 MILLION TONS OF cumulative annual sales of $1 billion. Its proven operating philosophy CARGO MOVED THROUGH PRPA IN 2015. revolves around cradle-to-grave cold chain protection for fresh fruits and vegetables to maximize shelf life. As a result, PWPM boasts that it is unsurpassed from an Hyundais and Kias being discharged

OF THE JOURNAL OF COMMERCE THE JOURNAL SPECIAL ADVERTISING SUPPLEMENT OF international food safety standpoint. at the Port of Philadelphia. Kovacevich believes that PWPM is its own best marketing tool. “All anyone needs to want to do business through the Philadelphia ports and facilities is to visit. Our home, the Philadelphia Wholesale Produce Market, is a beautiful example of what makes this region a perfect distribution hub for the world’s produce. Vibrant yet uncongested, modern, clean and temperature-controlled, we are constantly showing off what is certainly one of the best produce distribution centers on earth. Visitors nearly always smile and say ‘Wow, this is how it’s supposed to be!’” Port interests are confident in their ability to protect and grow Philadelphia’s perishables niche. “Whenever the competition has tried to steal some of our business, they quickly find out it’s not something you decide to get into one day. You can’t just immediately put the port equipment, facilities and people in place. You can’t buy the expertise. The major importers and distributors know they can distribute to a 1,000-mile radius from Philadelphia to points from Florida to Canada. And we’re not stagnant. We’re still growing and expanding, and people are adding square feet, technology and most importantly, value, every year. The operations, facilities and know-how are in Philadelphia, and importers realize that,” Mastromarco said. n

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n 2015, marine facilities on the per year, with cargo projections calling allow for the pursuit of new business Delaware River worked more than for as many as 400,000 tons annually. opportunities. I50 million tons of cargo, transloaded In addition to more than $20 million Kinder Morgan is the largest energy to and from nearly 2,400 vessels. The in enhancements on the terminal, infrastructure company in North America. Philadelphia Regional Port Authority rail access was improved along the It owns an interest in, or operates, nearly accounted for more than 6.6 million tons of Port Richmond industrial track to 84,000 miles of pipelines and approximately the total and provides a microcosm of the region’s diverse cargo mix.

— CONTAINERS: 3.2 million tons or 430,000 TEUs. — BREAKBULK: 1.8 million tons. — STEEL: 466,631 tons. — FRUIT: 295,419 tons. — FOREST PRODUCTS: 857,598 tons. — COCOA BEANS: 113,538 tons. — AUTOMOBILES: 156,000 units. — LIQUID BULK: 1.5 million tons.

Forest products have long been a staple along the Delaware. The port boasts a 52-acre Philadelphia Forest Products Center and more than 1.7 million square feet of warehouse space. These facilities are fed from over 5,000 linear feet of berthing space. Penn Warehousing and Distribution is a major player in this trade, Director – Global Business Development Tom Mutz reported. “We handle the core forest products lumber, paper and pulp. Lumber has been steadily growing and certainly the housing recovery drives that. Pulp has been the hot commodity over the last few years, particularly with all the production in Brazil. The majority of our tonnage volumes are with northern Europe, Central and South America and Oceania. We are looking forward to the opportunities that our new Mexico service will provide. We operate a handful of piers within the Port of Philadelphia -- Piers 38, 40, 78, 80 and 82. Of course, the majority of the containers we handle are processed through Packer Avenue Marine Terminal,” he said. In September 2014, the Tioga Marine Terminal in the Port Richmond section of Philadelphia officially welcomed Fibria Cellulose, a major Brazilian pulp and paper company. This venture will initially comprise up to 20 ship calls

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THE DELAWARE’S TREMENDOUS REFINING CAPACITY HAS STRENGTHENED THE and Norfolk Southern railroads connect PETROCHEMICAL AND FUEL SUBSTITUTE NICHE with the terminal. “The Kinder Morgan terminal is an OF PHILLY’S FREIGHT PROFILE. integral part of the overall mix of vibrant business, industrial and industrial-support facilities in the Philadelphia area, driving regional economic health and development. 165 terminals. These pipelines transport We operate as a transportation ‘toll natural gas, gasoline, crude oil, carbon road’ and provide the key infrastructure dioxide and other products, and the necessary to add customer value to the terminals store petroleum products and movement of customers’ commodities chemicals, and handle bulk materials such by road, rail and vessels,” Operations as coal and petroleum coke. Superintendent Jay Costello said. The company’s Philadelphia terminal Petrochemicals and fuel substitutes is situated on 35 acres adjacent to the occupy a primary niche in the Delaware River and handles a variety of region’s freight profile, due to the commodities, primarily chemicals and tremendous refining capacity along refined products such as ethanol. The the Delaware. Recently, anti-pipeline facility has ready access to Interstate sentiment has generated interest in 95, the Pennsylvania Turnpike and major waterborne alternatives for moving such arterials and state roads to New Jersey products. Specifically, plans are under and Delaware. It has one ship dock, one consideration to institute barge service barge dock and approximately 1.2 million between liquid bulk receiving facilities Credit: Philadelphia Regional Port Authority barrels of storage capacity. Conrail, CSX and refineries. n

20A www.philaport.com APRIL 18.2016 The Manfredi Companies

NATIONAL REFRIGERATED FREIGHT

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QUALITY PRODUCE PACKING SERVICES SERVICIOS DE EMPAQUE DE CALIDAD PARA PRODUCTOS AGRICOLAS • State of the art automated weighing and packing equipment • Equipo automatizado de empaque y peso. • Personalized bagging, clamshells, traypacks, RPC/RDT packing • Embolsado personalizado, empaquetado con cubierta, paquete de bandeja, contenedor de plastico retornable. • Custom labeling • Etiquetas personalizadas. • Reconditioning–all commodities • Recondicionamiento para todas las variedades. • 40,000 square foot dedicated packing area • 40,000 pies cuadrados dedicados a el area de empaque. • Real time inventory • Inventarios actualizados al dia. Contact Frank Manfredi at 610-444-5832 or [email protected] The Manfredi Companies • 290 Chambers Road • Toughkenamon, PA 19374 ORT OF PHILADELPHIA

PREPARED Expansion Plans Encourage Long-Term Growth

hanges in vessel configuration. U.S. Army Corps of Engineers project In its evaluation of the project, the Emerging commodities. was conceived in the early 1980s and Corps noted that deeper channels at C Advances in cargo handling authorized by Congress for construction other U.S. East Coast ports had the technology. Enhanced inland connectivity. in 1992, but not until 2010 — two potential to severely dampen future Competition for development resources. years after the Philadelphia Regional volume prospects for Philadelphia, These are among the primary factors Port Authority officially signed on as particularly in the container trades. ports must consider in designing and nonfederal sponsor — did the first dredge “Without the deepened channel, the funding development projects. All of these drop its cutter into the bottom to begin ports on the Delaware cannot compete must be factored into a timeline that puts the deepening. Opposition to the project for the post-Panamax size vessels infrastructure in position quickly enough derailed the project for 18 years. Along and will have trouble maintaining to accommodate new business, but the way, four proposed upland disposal their current levels of business in the

THE JOURNAL OF COMMERCE SPECIAL ADVERTISING SUPPLEMENT OF THE JOURNAL not so early that cash flows needed to sites were replaced by using existing future,” DePasquale said. “The imminent finance them are compromised. federally owned sites, and overboard completion of the Panama Canal In Philadelphia, the major development disposal sites in the Delaware Bay were expansion will open up access to larger news is the impending completion of the converted to wetland restoration and container vessels coming to the ports Delaware River channel deepening. The beachfill projects. The Government from Asia, Australia and New Zealand. The deepening of the Delaware River will allow the port to remain competitive in this rapidly expanding market.” THE FIVE-YEAR CHANNEL DEEPENING The PRPA and its customers agree, categorizing the project as both a PROJECT IS 85 PERCENT COMPLETE safeguard against customer attrition and a stimulant for increased business AND SHOULD BE FINISHED IN 2017. resulting from the deeper draft. The project dovetails nicely with Horizon Stevedoring’s expansion agenda. five-year project is 85 percent complete Accountability Office performed two “We are a tenant of the PRPA, so many of and should be finished in 2017. The U.S. audits of the project, and two of the the facility and infrastructure projects are Army Corps of Engineers is principal three states that originally supported within their scope, and it is a perpetual sponsor bearing approximately the project — New Jersey and Delaware process. We continue to add pallet- 65 percent of the cost, with the — sued the federal government in an storage positions in our atmospheric- and Philadelphia Regional Port Authority attempt to stop the deepening,” Anthony temperature-controlled warehouse, in acting as local sponsor and funding the DePasquale, P. E., chief, operations the six segregated rooms throughout the balance. Vital statistics are: division, U.S. Army Corps of Engineers, facility. That would be inclusive of our Philadelphia District, said. specialized pressurized storage racks. — LENGTH: 103 miles. “Despite these obstacles, the Corps’ We are looking forward to expanding our — COST: $353 million. Philadelphia District prevailed in court current reefer farm slots towards 200 — CHANNEL DEPTH: Increased from and commenced the deepening of the positions. We’re quite excited about the 40 feet to 45 feet. Delaware River Main Channel in March channel deepening and prospects it holds — DREDGE MATERIAL: 16 million 2010. The project had been properly for all within the Delaware River Basin,” cubic yards. justified, and no evidence was unearthed President Tim Brown said. of any potential environmental harm. Its From the perspective of those at Penn The project was not easy to bring start was also catalyzed by funding from Warehousing and Distribution, the channel to fruition. “It has been a long and the Commonwealth of Pennsylvania, which improvements will drive the region’s tortuous journey to finally deepen the invested at its own risk when federal funds long-term development objectives. “The Delaware River from 40 to 45 feet. This were not immediately available,” he said. completion of the channel deepening

22A www.philaport.com APRIL 18.2016 SPECIAL ADVERTISING SUPPLEMENT OF THE JOURNAL OF COMMERCE will positively impact all terminals in the build, finance, operate and maintain Philadelphia is well positioned to

Delaware River Basin. This presents many commercial and industrial facilities at the experience other growth, more organic OF PHILADELPHIA ORT exciting opportunities along the river, three sites that comprise the Southport growth, because of the many capital especially the PRPA’s Southport Marine Marine Terminal Complex: the 119-acre improvements that have already occurred. Terminal Complex development. It’s clear Southport Marine Terminal (Site 1); the to see that the container vessel operators 75-acre Southport West Terminal (Site 2); — Expansion of intermodal are closely scrutinizing their rotations and and Pier 124 North Berth (Site 3). The infrastructure at Norfolk Southern’s how they will adjust them to support their 196-acre riverfront property is owned by Navy Yard Intermodal Facility. customers. There are many companies that PRPA, located immediately west of Packer — Improved rail clearance in the will not want to have their vessels sitting Avenue Marine Terminal. It currently northern part of the port, adjacent to in New York Harbor or the Chesapeake, remains idle and undeveloped, but the goal the Tioga Marine Terminal. awaiting the mega-vessels to be turned in is to enable the market-driven development — The retooling of Tioga Marine 72 to 96 hours. In short, they will decide to of Southport in 2017, creating up to 3,700 Terminal to handle forest products. pursue alternative ports, and I firmly believe new jobs. — Opening of the Southport Connector that Philadelphia will be a big winner in that PRPA Chairman Jerry Sweeney Road providing dedicated, process,” Tom Mutz, the company’s director outlined additional recently completed unimpeded access to both rail and of global business development, said. and impending initiatives, in addition to riverfront. If capital expenditures are a barometer the channel deepening, that will further — Design of the Pier 124 North Berth of optimism, then the port interests in the the port’s growth agenda: Access road. Philadelphia area can be conservatively “We have been focusing on taking the — Reinvigoration of Pier 122 and Pier described as bullish. The roster of steps necessary for our long-term growth. 124 for energy-related operations. projects is expansive. Our Southport development project is the — A $5 million investment in the Perhaps the single greatest focal point key to that growth, and the Commonwealth Philadelphia Automobile Processing for future development is the Southport of Pennsylvania has invested $30 million Facility at the Pier 98 Annex. project. Last fall, as part of Pennsylvania preparing the site for the construction — Anticipated upgrades to Pier 82 to Governor Tom Wolf’s strategic plan, phase. In the next few months we will accommodate the transition of fruit PRPA launched a two-phased process to select the company or companies who imports from palletized to container procure one or more developers to design, will bring our vision into reality. Secondly, operations.” n

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PROGRESSIVE Prioritizing Long-Term Infrastructure Planning

hiladelphia’s worthy competitors availability of land and labor should — Explore more public-private will not stand idly by as the port continue to drive the growth,” she said. opportunities for financing P attempts to build market share at “However, following are some of the infrastructural projects.” their expense. It is, therefore, incumbent points that should be considered in order upon the port to engage in a continuous to sustain the growth and demand curve: Cocoa importer Blommer Chocolate process of rigorous self-analysis to identify Co. closely examines vessel rotations in and eliminate any potential obstacles to — Land use and zoning should be determining its port utilization. “We will achieving its projections for growth. integrated with the transportation continue using the ports in Philadelphia Dr. Neha Mittal of Temple network. Given the transportation as long as the port operators can University’s Fox School of Business consequences of land-use continue to get direct shipments from outlined a long-term game plan for decisions, strategies should be various steamship lines. It is an entire

THE JOURNAL OF COMMERCE SPECIAL ADVERTISING SUPPLEMENT OF THE JOURNAL capitalizing on the region’s intrinsic identified to manage growth to help supply chain and extremely important to assets. “I foresee the current trend of alleviate traffic congestion, and have direct shipments from the cocoa- growth and development continuing pollution and enhance a livable and growing countries around the world,” in distribution center operations sustainable environment. Corporate Logistics Manager Michael in Philadelphia and Pennsylvania’s Lang said. near future. Its central location, — Future transportation planning should Ample ocean carriage is also high reliable transportation network, focus on further integrating different on the agenda at Evans Delivery. “We modes of transportation. Identifying certainly need increased standard multimodal and intermodal strategies service. Our opportunity is there due to Site formerly known as Jack’s Marine to reduce congestion and travel congestion and facility issues in ports restored to tidal wetlands. times can help regional growth. further to the north. However, we need to

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have the carrier service to take advantage to this project. My questions are: Why Colliers International has reported of these circumstances,” Keith Walborn, hasn’t NS moved into this location? If increased attention from site seekers in company agent, said. NS does not plan on moving into this search of product distribution locations. John Vena Inc.’s president agreed. location, will the Pennsylvania taxpayers “As far as a location for large regional “The driver for growth for us in get their money refunded?” he said. distribution centers, Philadelphia has Philadelphia is really based in the Fellow cocoa entrepreneur Harvey not competed with markets such as the success that the port has in opening new Weiner, president of Dependable Lehigh Valley and southern New Jersey routes that will call on Philadelphia. We Distribution, stressed the importance because of the lack of developable land will happily move our freight to carriers of keeping up with the Joneses. “One in close proximity to interstates. However, coming here if the shipping points and potential obstacle is sufficient public we have begun to see more ‘last-mile’ schedules work for us,” Vena said. investment in transportation infrastructure, distribution requirements in the suburban Lang also placed a premium on rail including ports. While the PRPA and the counties and southern New Jersey. connectivity and calls for expanded private terminal operators such as DDS These are e-commerce package delivery infrastructure. “We would like to see have made considerable investments locations for Amazon and Jet.com. Also Norfolk Southern occupy part of in port equipment and infrastructure, there have been more subscription food Southport next to CSX, as planned. This we will need greater support from the companies showing interest in our market. competition would benefit many in the commonwealth going forward. Competing This is a trend that may potentially benefit in moving cargo via the ports are getting bigger capital Philadelphia — as a location for smaller intermodal method. As you know, this investments, and they will come after our distribution centers for repeat daily has not occurred. However, $5 million cargoes (and our jobs) if we don’t make deliveries to the metro population,” Senior taxpayer dollars have been dedicated similar investments,” he said. Vice President Richard Gorodesky said. ■

SUCCESS STARTS WITH A WINNING TEAM! Since our establishment in 1920, we WE OFFER OUR CUSTOMERS: have been providing our customers the • 2 million sq. ft. of warehouse space best possible service through superior handling and performance, technological • Customer access to 24-hour advancements, and a constant eye on inventory tracking customer satisfaction. We offer one of • Container transloading, from / to rail the most cost effective and reliable labor or truck forces in the North Atlantic. • 17 berths, 3 RO-RO ramps We can accommodate a variety • Specially engineered heavy lifting gear of automobile, bulk and breakbulk, • On-site access to 2 class 1 rail systems container, perishable, and paper and • On-site intermodal facilities forestry products. Our distinction lies • Efficient distribution to two thirds in our ability to closely coordinate of the United States and Canadian your stevedoring, warehousing, and populations within 48 to 72 hours distribution logistics.

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0000_Penn Warehouse ad 7x4.875_v1.indd 1 12/22/15 4:17 PM www.joc.com THE JOURNAL OF COMMERCE 25A ORT OF PHILADELPHIA

PROACTIVE Where Personal Relationships Produce True Collaboration

eamwork is a popular port part of the maritime scene for decades. uncongested berths, strong intermodal marketing term. Unfortunately, it As such, they evidence an almost connections, modern warehouses and a T is an unfulfilled promise in many paternal pride in the growth and evolution favorable location at the epicenter of the locales. Often, the labor-management of their port. This is confirmed in the U.S. population are important items, but tension is palpable. Relationships between ingenuity, attention to detail, energy and what I really think sets the Philadelphia port authorities, tenants and port users customer focus common among all the region apart is a can-do attitude,” Robert are strained. The unavoidable and highly port’s logistics players. Palaima, president, Delaware River visible consequences range from poor “The gains we have made have come Stevedores, said. communications to shipment delays and as a result of strong collaboration with For the cocoa sector, such from cargo degradation to work stoppages. our business partners, especially the cooperation in indispensable, Dependable Enter Philadelphia … Where harmony is not Philadelphia Regional Port Authority, the Distribution President Harvey Weiner just a conversation, but a commitment. International Longshoremen’s Association noted. “We have great relationships with OF THE JOURNAL OF COMMERCE THE JOURNAL SPECIAL ADVERTISING SUPPLEMENT OF The Philadelphia port community is and the Pilot’s Association for the River the U.S. Food and Drug Administration, dotted with enterprises that have been Delaware and Bay. There is no doubt that U.S. Customs and the other regulatory

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HARMONY AT PHILLY IS MORE THAN A CONVERSATION, IT’S A COMMITMENT.

agencies. We know what they need to do their jobs, and working together, we ensure that the cocoa beans can move through our port quickly,” he said. For Evans Delivery Agent Keith Walborn, the personal relationship with the Philadelphia Regional Port Authority staff is vital to his operation. “I really appreciate our access to the Philadelphia marketing people, because anytime something is on the horizon, I hear about it. Unfortunately, in other ports, the news

www.joc.com THE JOURNAL OF COMMERCE 27A comes from our drivers,” he said. The port authority is equally invested in the team approach, and has GREAT RELATIONSHIPS KEEP implemented a blueprint to facilitate it. “The communication and governance PRODUCTS MOVING QUICKLY we have put in place has allowed the PRPA to create a competitive structure THROUGH THE PORT. within our terminals and in the larger port community, which generates greater efficiencies and harmony in our labor. This enables us to be more flexible between the Philadelphia Regional Port Local 1291, offered their perspective: “We and competitive on the global market,” Authority and its stakeholders have view our work with the terminal operators Nicholas Walsh, director of strategic had a significant impact on the port and other supply chain service providers planning and development, said. development. Changes in product mix as a partnership. The whole Philadelphia Clayton Manthorpe, president, CMS imported and exported from the region port community is committed to moving the Transportation put it simply: “You can required the repurposing of existing cargo as safely and efficiently as possible. have the biggest port in the world. But facilities and expansion of other facilities. The entire port community, including labor, at the end of the day, if you can’t move Public-private partnerships allowed that works as a team. We know each other, we boxes, you’re not getting anything done.” to happen. The proposed development of trust each other, and we communicate. At PRPA, his drivers can do from four to the Southport site demonstrates a new “No port can thrive without labor on sometimes six turns a day. “All the players era for the public-private initiatives under board, and we are a partner in selling in the logistics chain understand the end consideration, and will provide significant the port’s services, and a team member goal. Local and state agencies, private opportunities for the port to maintain its in moving the cargo. We try to be industry, labor, working hard to do what competitive edge,” Horizon Stevedoring entrepreneurial in coming up with better it takes to make the port and port-related President Tim Brown said. ways to move the cargo. Obviously, safety is facilities work effectively,” he said. Labor is a vital player in presenting first. We also respect seniority in organized

ORT OF PHILADELPHIA This cooperative approach is an a unified front to the port’s customers labor. But we know that we’ve got to get the important driver for infrastructure and proponents. Boise Butler, president, job done for the customer in order to grow OF THE JOURNAL OF COMMERCE THE JOURNAL SPECIAL ADVERTISING SUPPLEMENT OF improvements. “I believe the relationships International Longshoremen’s Association the port and grow jobs.” n

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PROMISE The View From 40,000 Feet

o where does all of this activity lead? What will Land, labor and capital are the key ingredients for long- the portscape look like in 2026? Philadelphia term success of the port, Sweeney said. The Southport S Regional Port Authority Chairman Jerry Sweeney Marine Terminal Complex project provides ample expansion predicted, “We have put in place a platform for parcels. He echoed the port-wide sentiment regarding the tremendous growth, made even sweeter by the imminent partnership position and productivity of labor. completion of our channel deepening. This is the first As far as capital, Sweeney trumpeted the $300 million time in a while that we have had all the tools in place. that Pennsylvania has invested in the last four to five years While we have had a solid pace of volume increases on dredging and related projects. “Capital allocation over the last six years, we’re in a position to accelerate will remain critical. We are a supplicant of public sector that dramatically with the development of Southport and funding, so we need more than ever to make the case that organic growth at all of our existing terminals. we are a major driver in the Pennsylvania economy and

OF THE JOURNAL OF COMMERCE THE JOURNAL SPECIAL ADVERTISING SUPPLEMENT OF that our waterfront is generating family-sustaining jobs and We will certainly see: major economic impact,” he said. — A broader and more cohesive waterfront; “Fortunately, we are blessed with a governor who — A doubling of the number of direct jobs understands and is committed to the optimization of our in the port sector; port and a new mayor who is an avid port booster. They — More and larger ships across the complete our team so that for the first time in a decade we commodity spectrum; have a concerted effort to work collaboratively and develop — Continued investment in this important our strategies for growing our piece of the pie.” n economic driver.” Philadelphia is … PROMISE.

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