2005 SOUTH JERSEY ANNUAL REPORT PORT CORPORATION 2005 ANNUAL REPORT SJPC CONTENTS Chairman’s Letter 1 Board of Directors 2 2005 Overview 4 Port Facilities 9 Port Management & Staff 13 Financial Statements 14 2005 ANNUAL REPORT SJPC TO THE GOVERNOR AND LEGISLATURE The South Jersey Port Corporation (SJPC), perhaps GOVERNOR JON S. CORZINE uniquely among agencies of the State of New Jersey, is both a public servant and a business. That’s why it is gratifying to report to you that, during 2005, the SJPC served the public of New Jersey and of the South Jersey region so well with effective business management and planning, as it once again achieved a combined record level of business at the Ports of Camden and Salem. Importantly, while the SJPC At the Port of Salem, the SJPC achieved record cargo tonnage levels welcomed a principal new tenant. for the third consecutive year and National Docks is a sand and gravel installed and implemented the use of business that brought 90,000 tons of important new infrastructure at the material through the port in just six Port of Camden, the port corporation months of operation during 2005. made important strides forward with Importantly, this new tenant brings long- planning for development of a fourth term stability to the state’s southernmost port in South Jersey at Paulsboro. port. In a development to sustain the Combined cargo totals at Camden viability of the port, the Salem River and Salem during 2005 topped 3.5 channel deepening from 12 feet to 16 million tons, a healthy 3.5 percent feet in a project was funded jointly from increase over 2004, with leading state and federal resources. commodity categories including ce- With business strong at its operating ment, steel, scrap, wood products and ports, the SJPC moved forward during fruit. Once again the volume of cocoa 2005 to develop the Port of Paulsboro bean imports increased at the Port of so that New Jersey will have the ability Camden, making this port not only a to meet a growing need for maritime national leader in plywood imports but facilities to serve South Jersey. The also now for cocoa beans shipped to SJPC board approved bond financing the United States from West Africa for development of a port that will and Asia. Indeed, cocoa bean imports have an integrated marine terminal and through the Port of Camden grew by industrial distribution center in a long- an enormous 58 percent during 2005 term plan that foresees build out to a to more than 132,000 tons. maximum of six ship berths. At the Broadway Terminal of the In summary, during 2005, the Port of Camden, the SJPC received, business of the South Jersey Port installed and put to work a new $7.2 Corporation remained strong, grew and million lift crane and conveyor system gave every indication that the agency with a 90-ton capacity that is part of will achieve new levels of success in the the reconstruction and revitalization of future from the investments it brought Broadway’s Pier 1A. This development on-line and the planning for the future is part of the long-range improvement that moved forward during the year. of the port, a facility that sustains 2,000 jobs as it continues to be a mainstay Sincerely, of private sector employment and investment in the City of Camden. Richard A. Alaimo Chairman 2005 ANNUAL REPORT SJPC SJPC BOARD OF DIRECTORS RICHARD A. ALAIMO CHAD M. BRUNER JonatHAN S. GERSHEN JosepH A. Maressa, JR. Chairman Director Director Director Mr. Alaimo is founder Mr. Bruner is Deputy Mr. Gershen is the Vice Mr. Maressa is President and President of the Administrator for Gloucester President and General Counsel of Title America Agency Alaimo Group, Consulting County and Director of of The Gershen Group, Corp., and is a partner in Engineers, located in the Gloucester County LLC, located in Princeton. Cedarbrook Properties, LLC. Mount Holly and Paterson; Department of Health Mr. Gershen currently A graduate of the Peddie he is a Consulting Civil and & Senior Services. An serves on the board of the School, Rowan University Sanitary Engineer as well adjunct professor at Rowan NJ Apartment Association. and the Widener University as a Licensed Professional University, he graduated from A graduate of Brandeis School of Law, Maressa is Engineer in New Jersey, Emory University School University and Benjamin N. a partner in the law firm of Pennsylvania and of Business Administration Cardozo School of Law, Maressa, Goldstein, Patterson, Delaware and Professional in Atlanta with a BBA and he is a member of the New Drinkwater, Oddo and Flynn. Planner. A graduate of received an MBA from Jersey Bar. Mr. Gershen He is also managing member the Rutgers University Rowan. A Commissioner was appointed to the Port of Kimberly Builders, LLC, College of Engineering, of the Gloucester County Corporation Board in 2002, and a managing member he has been a member Improvement Authority, representing Mercer County. of Chancellor Development of the Port Corporation he was appointed to the Group. Mr. Maressa was since 1968, representing SJPC Board of Directors in appointed to the SJPC Board Burlington County. December 2002, representing in January 2004, representing Gloucester County. Camden County. 2005 ANNUAL REPORT SJPC SJPC BOARD OF DIRECTORS ERIC E. Martins CRAIG F. REMINGTON BARBARA TOMALINO Director Director Director Eric E. Martins, Esq. is the Mr. Remington is a Principal Ms. Tomalino is owner and Managing Director of Duane of Remington & Vernick President of Paramount Air Morris Government Affairs Engineers, located in Service, the nation’s largest in Trenton. Mr. Martins is Haddonfield, serving clients and oldest aerial advertising a member of the Board of throughout New Jersey, firm, headquartered in Cape Trustees of Junior Achievement Pennsylvania and Delaware May Courthouse. Ms. Tomalino and the Arts and Business and serves as Vice president is a Commissioner of the Partnership of Southern New and Treasurer. Mr. Remington New Jersey Commerce and Jersey. The former Chairman is a licensed Professional Land Economic Growth Commission for the Mercer County College Surveyor and Professional and is Chair of the Cape Board of Trustees Advisory Planner and is a graduate Women’s Resource Fund as Committee, he is a graduate of of Drake University and well as the Cape Education the University of Pennsylvania Temple University. He has Fund.She was appointed to the Law School in and The College been a member of the Port Port Corporation in December of New Jersey. Mr. Martins Corporation since 2001, 1995, representing Cape May was appointed to the Port representing Camden County. County. Corporation Board in 2004 representing Mercer County. 2005 ANNUAL REPORT SJPC 2005 OVERVIEW In a word, 2005 was a year of more at the South Jersey Port Corporation (SJPC) — more business, more growth, more expansion, more efficiency and more prospects to grow the ports of South Jersey.The SJPC experienced more business during 2005 than ever before in its history and installed more and better infrastructure as it realized operational returns on investment decisions made during the current decade. The corporation also advanced its management of port security, a vital element in the contemporary port industry and marked advances on its way to developing a new port in the South Jersey region. THE PORTS For the third consecutive year the beans from the Ivory Coast in Africa SJPC recorded combined record total and from Indonesia and other nations cargo tonnage at its two operating in Asia. The ports proximity to the ports, the Port of Camden and the Port chocolate manufacturing industry, more of Salem, as combined cargoes for the than 90 percent of which is based within first time surpassed 3.5 million tons. 100 miles of Camden, has made the The record cargo results were spurred Port of Camden the increasingly logical both by significant increases in bulk and choice for cocoa bean importation. containerized cargoes. In fact the total Cargoes arriving and departing the tonnage of containerized cargo moving ports in containers grew from 145,205 through the ports more than doubled tons in 2004 to 305,336 tons in 2005. during the year in part on the strength The Port of Camden, with its expanding of new activity at the Port of Salem. facilities and new efficiencies, handled 97 Cargo totals, including both exports percent of total tonnage during 2005, and imports, were 3,555,549 tons for including 2.281 million cargo tons at the year, an increase of 3.5 percent the Beckett Street Terminal and 1.184 from cargoes totaling 3,433,066 tons million tons at the Broadway Terminal, during 2004. Leading commodity while the Port of Salem handled 90,000 categories during 2005 were cement, steel, scrap, 2004 VS 2005 CARGO TONNAGE wood products, fruit and Grancem®. Cargo categories that showed a CARGO 2004 2005 year over year increase during 2005 included Cement 740,936 788,840 cement, scrap metal and Steel 555,293 442,548 Grancem®. Scrap metal 527,208 624,102 A notable increase Wood Products 520,829 427,280 occurred in cocoa bean Fruit 486,337 349,579 import tonnage, which Grancem® 231,687 298,852 experienced a year-over- year 58 percent increase in 2005 to 132,284 tons as the Port of Camden continued tons of cargo, largely on the basis of the to emerge as one of if not in fact the arrival of a major new tenant. dominant U.S. point of entry for cocoa The record tonnage was achieved 2005 ANNUAL REPORT SJPC 2005 OVERVIEW with 337 ship calls at the Port of Camden NEW CRANE that generated 884 ship days in port.