Presentation to The Port Study Committee
Jerry A. Bridges Executive Director Virginia Port Authority August 26, 2008
Port Cargo 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. Ports
Ranked Port TEUS
1 Los Angeles/Long Beach 15,671,504 2 New York/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 Taxes
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 Craney Island 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 tax revenue
Heartland Corridor
Cleveland Chicago
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 National Gateway
– Connects Norfolk to the Midwest and beyond
Chicago Pittsburgh NYNJPA – NW Ohio 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 Hampton Roads
• 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 – Channel 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 Baltimore 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 North Carolina 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
• 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 Harbor Craney Island Marine Terminal NITNIT
APM/Maersk 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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