Presentation to The Study Committee

Jerry A. Bridges Executive Director Port Authority August 26, 2008

Port Growth vs. U.S. GDP

US GDP and TEU Trade: 1980 - 2006

600

500

400 GDP Index

300

200

100 1990 1998 1988 1992 1994 1996 2000 2006 0 1980 1982 1984 1986 2002 2004

US TEUs US GDP

1 2007 Top U.S.

Ranked Port TEUS

1 /Long Beach 15,671,504 2 /New Jersey 5,299,105 3 Savannah 2,604,312 4 Oakland 2,388,182 Top East Coast Ports 5 VIRGINIA 2,128,366 6 Seattle 1,973,504 7 Tacoma 1,924,934 8 Houston 1,768,627 9 Charleston 1,754,376 10 San Juan 1,695,134

Source: 2007 AAPA Units: TEUS

The Port of Virginia

2 Port Growth and Economic Impact

• The Port of Virginia is an Economic Engine for the Commonwealth* – 343,000 Port and Port-Related Jobs Statewide • Represents 9% of Virginia’s Workforce – $41 Billion in Business Revenues – $1.2 Billion in State and Local

Source: 2008 Economic Impact Study by William & Mary Mason School of Business

East Coast Ports Capacity Estimates

14.0 2020 Capacity 12.0 2007 TEUs 2020 TEUs

10.0

8.0

6.0 TEU (Millions)

4.0

2.0

0.0 New York Norfolk Charleston Savannah Jacksonville

3 Growth Plans to Accommodate Projected Cargo Demand

Craney Island Marine ChesapeakeChesapeake Terminal - $2.4 Billion BayBay NNMTNNMT

Norfolk International Terminals - $450 Million

APM Terminals Est. $550 Million

NIT CIDMMACIDMMA NIT Portsmouth Marine Terminal 70 acres

Heartland Corridor

PMT PMT Over $3 Billion Commitment

Future Marine Terminal

Phase 1 – June 2017 Phase 2 – June 2032 Total Acreage: 220 Total Acreage: 600 Pier Length: 3000 ft. Pier Length: 8000 ft. Depth: 52 ft. Depth: 52 ft. Cranes: 6 Cranes: 15 Capacity: 1.5M TEUs Capacity: 5M TEUs Cost: $1.2B Cost: $1.06B

4 Craney Island Marine Terminal Regional and State Economic Benefits

• CIMT Will Benefit the Region with:

– Over 54,000 new jobs

– $1.7 billion in wages

– $155 million in annual state & local revenue

Heartland Corridor

Cleveland

Harrisburg

Columbus 10311,031 Miles Miles to to Cuts 233 Miles From Chicago 12641,264 Miles Miles toto the Rail Route Chicago Between The Port of Virginia and Chicago Prichard

Roanoke The Port 28 Tunnels Require of Virginia Modifications to Provide 20’-3” Clearance Heartland Corridor

5 The

– Connects Norfolk to the Midwest and beyond

Chicago Pittsburgh NYNJPA – NW Transfer Yard enables CSX service to

Columbus new major markets St Louis Port of Virginia Doublestack clearance available to CSX Southern Network Memphis – Expedites traffic through Birmingham Atlanta Chicago and St Louis gateways

Jacksonville New Orleans CSX National Gateway Tampa CSXT double stack routes Other CSXT routes

Miami

Hampton Roads Third Crossing

• Proposed Multimodal Connection between Hampton Newport News Chesapeake Norfolk & Newport News Bay

James • Not Essential for CIMT River

• CI Connector Planned to T B

M Accommodate Third M Norfolk Crossing Construction 164

Portsmouth

ProposedProposed ThirdThird Virginia CrossingCrossing AlignmentAlignment Beach

6 Approximately 285 Distribution Centers in Virginia

Concept for Regional Planning for Smart Industrial Land Use Growth

US 460

IndustrialIndustrial NorfolkNorfolk AreaArea SouthernSouthern

BufferBuffer AreaArea (s)(s)

USUS 5858

CSXCSX

7 Increasing Virginia’s Competitive Edge • How Do We Get There? • How Do We Finance Our Needs?

Financing Options

• Bonds and Other Debt Instruments • Increase Terminal Revenues • Federal Appropriations • Public Private Partnerships (ex. PPTA) • Privatization

8 East Coast Competitive Environment

• Influencing Factors – Terminal Capacity – Inland Distribution Capabilities • Intermodal and Connections to Transportation Network – Ease of Access to the Consuming Population –Cost – Location of Distribution Centers and Intermodal Parks – Depth – Policy and Legislation That Guarantees Our Master Growth Plans

Port of New York and New Jersey

• July 24, 2008 New York/ – The Port of New New Jersey Philadelphia York and New Jersey announces a strategic Southport assessment to explore ways to Charleston handle future port Savannah cargo volumes

9 Port of Philadelphia

• Limited Growth for 20 years New York/ New Jersey • Strategic Philadelphia Baltimore Assessment Completed

Southport • Current Chanel Depth 40 feet Charleston

Savannah

Port of Baltimore

• Seagirt Terminal • Room for New York/ New Jersey Expansion Philadelphia Baltimore • Chanel Depth 50 feet

Southport

Charleston

Savannah

10 State Ports Authority

• Southport

New York/ • Rail Access New Jersey Philadelphia Baltimore

Southport

Charleston

Savannah

Port of Charleston

• Expansion at the

New York/ Former Site of the New Jersey Philadelphia Charleston Navy Baltimore Base

Southport

Charleston

Savannah

11

• Jasper Ocean Terminal New York/ New Jersey • Permitted to Philadelphia deepen the Baltimore Savannah River Channel from 42 Southport feet to 48 feet

Charleston Savannah

The Port of Virginia Positioned to Accommodate Growth

NNMTNNMT

Hampton Roads Proposed Craney Island Marine Terminal NITNIT

APM/ PMTPMT Terminal

12 Summary

• Maintain Current Development Plans for CIMT • New Transportation Initiatives • Support for Transportation Infrastructure • Economic Development Tax Incentives to Remain Competitive with N.C., S.C., & GA. • Flexibility to operate as an Independent Business Entity • Adherence to 2040 Master Plan • The Port of Virginia Can Become the Dominant Port on the East Coast

Presentation to The Port Study Committee

Jerry A. Bridges Executive Director Virginia Port Authority August 26, 2008

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