South Jersey Port Corporation 2007 ANNUAL REPORT Celebrating 80 years of service C e e c l i e v b r r e a s t f i o n g s r 8 a 0 e y y e 0 a 8 r g s n i o t f a s r e b r e l v e i c C e e c i v r e s f o s r a e y 0 8 g n i t a r b e l e C SJPC 2007 Annual Report Celebrating 80 years of service CONTENTS 1 Chairman's Letter 2 Board of Directors 3 Celebrating 80 Years of Service 7 2007 in Review 14 Port Facilities 16 Port Management and Staff Inside Back Cover CD of Financial Statements THE SOUTH JERSEY PORT CORPORATION For 80 years, the operations of the South Jersey Port Corporation (SJPC) and its predecessor the South Jersey Port Commission have been essential to New Jersey and the Delaware Valley region. A quasi state agency with the authority to build and operate marine terminals in the seven southern counties of New Jersey, the SJPC currently manages and operates two deepwater marine terminals in the City of Camden on the Delaware River and a barge facility on the Salem River, in the City of Salem. SJPC is in the midst of developing the Paulsboro Marine Terminal, a new omni-port, anticipated to open in 2011. The agency is poised to foster additional opportunities for expanded port operations in the region along the Delaware River. The photos on this page depict how the Port’s handling of products, particularly wood products — traditionally an im- portant part of its business — has changed over the past seven decades. In fact, the Port of Camden is the top port for plywood import in the entire country. The photo at the bottom left shows nowE xecutive Director Joseph A. Balzano as a young worker at the port guiding a lumber carrier. Mr. Balzano has been a Port employee for more than 56 years. SJPC 2007 Annual Report It is with pleasure that I advise you that augmenting prior investments to increase Celebrating 80 years of service during 2007 the South Jersey Port Corporation capacity to receive and store growing levels of (SJPC) maintained a strong maritime business commodity imports like cocoa beans and fresh profile on the Delaware River as it marked 80 fruit. To the Governor years of state operations. At the same time, the The greater the investment we make in Port advanced expansion of port and marine our ports, the more important security becomes and Members facilities and business in South Jersey with in this age of heightened awareness with regard of the Legislature progress toward development of a new marine to the strategic as well as the business value terminal at Paulsboro. of the ports of New Jersey and, indeed, of the In 1927 when Charles Lindbergh achieved nation. In 2007 the SJPC was pleased to receive a included topographic and location surveys, the first solo trans-Atlantic flight in The Spirit of federal security grant in the amount of $804,000 bathymetric and water sounding surveys, St. Louis and Babe Ruth hit 60 homes runs, the from the U.S. Department of Homeland Security geotechnical subsurface borings, environmental State of New Jersey established the South Jersey (DHS) to implement the Transportation Worker compliance studies and terminal planning and Port Commission, forerunner to the SJPC, which Identification Credential program designed to preliminary engineering toward development of in 1968 succeeded the commission. control port access. The Port of Camden was a a facility planned to open in 2011 and to greatly As the SJPC is both an agency of the state test site as the SJPC worked in close cooperation expand maritime capacity and business in South and a public business corporation, I am pleased to with the Transportation Security Agency of the Jersey. report that in 2007, even in a shaky economy with DHS. This report is submitted to you on behalf world trade constricting, the SJPC experienced The past and the present of the SJPC of the Board and executive management of the its third best year, moving more than 3.5 million are but prologue to its future and the future of SJPC with assurance that the work and progress tons of cargo through the Ports of Camden and maritime industry and commerce in southern the SJPC has delivered for more than 80 years on Salem. New Jersey. To foster and assure that future, the Delaware River waterfront in South Jersey With an eye toward improvements the SJPC in 2007 moved forward to develop the will move forward to still greater achievements at its main facilities in Camden, the SJPC last Paulsboro Marine Terminal. The port corporation and successes. year approved $6.1 million in investments for invested $2.93 million to finance professional development of new cocoa bean and general services to develop the new omni-port on 150 warehouse facilities at the Broadway Terminal, acres in Paulsboro. Key activities during 2007 Chairman, Board of Directors RICHArd A. ALAIMO Chairman Alaimo began his tenure with the SJPC in 1968, as a member of the original Board of Directors of the new Port Corporation. He had previ- ously served on the Port Commission. He first became the Chairman of the Board in 1993. His vision and dedication have helped the Corporation expand its business and its value to the state and the region. 1 SJPC 2007 Annual Report SJPC Leadership Celebrating 80 years of service THE BOArd OF DIRECTOrs AND EXECUTIVE DIRECTOR Chairman RICHArd A. ALAIMO President, Alaimo Group; appointed in 1968, representing Burlington County Director Director Director CHAD M. BRUNER JONATHAN S. GErsHEN CRAIG F. REMINGTON Administrator, Vice President/ Principal, Gloucester County; General Counsel, Remington appointed in 2002, The Gershen Group, LLC; & Vernick Engineers; representing appointed in 2002, appointed in 2001, Gloucester County representing representing Mercer County Camden County Director Director Director JOSEPH A. MAREssA JR. ErIC E. MARTINS REV. CARL E. STYLES President, Managing Director, Pastor, Bethel United Title America Agency Corp.; Duane Morris Methodist Church, appointed in 2004, Government Affairs; President/Business Agent, representing appointed in 2004, Laborers International Union Camden County representing Local 222, Camden; Mercer County appointed in 2008, representing Cape May, Cumberland and Salem Counties Executive Director and Chief Executive Officer JOSEPH A. BALZANO Mr. Balzano began his maritime career with the South Jersey Port Commission in 1951. In 1969 he became Deputy Executive Director of Opera- tions and Facilities, and in 1988, he was named to his current position. In 2001, Mr. Balzano celebrated his 50th year with the Port. He has now been employed at the Port of Camden for 56 years. 2 SJPC 2007 Annual Report Celebrating 80 years of service South Jersey Port Corporation celebrates 80 years of maritime history BEGINNINGS The photo to the left shows the port’s waterfront. The building at the top left is the building with the sign that is in the color photo at right. The ships in the color photo are at the Beckett Street Ter- minal docks. In 1927 Charles Lindbergh talking film, The Jazz Singer, starred Irving Berlin wrote Blue Skies; the Pittsburgh Pirates to win the World landed the Spirit of St. Louis in Paris, Al Jolson and signaled the end of Holland Tunnel opened, connecting Series; and carving of the Mount becoming the first person to fly solo silent films; and the last Model T New Jersey to Manhattan; the Rushmore monument began. across the Atlantic; Babe Ruth hit 60 rolled off the assembly line at the Ford Academy of Motion Picture Arts and And in 1927, the predecessor of home runs; television and the pop- Motor Company, replaced by the Sciences was established; the Federal the South Jersey Port Corporation up toaster were invented; the first introduction of Model A. It was also Communications Commission started (SJPC), known as the South Jersey Port transatlantic phone call connected the year in which the musical Show as the Federal Radio Commission; the Commission, was created, making New York to London; the first Boat debuted on Broadway; Yankees took four straight from the 2007 the 80th consecutive year of 1682 1688 1695 The Port of Salem is named The first license for a ferry service Across the river commerce increases so much a Port of Entry for the region in the area that was to become Camden another ferry service is is issued to William Royden established at Coopers Point 3 SJPC 2007 Annual Report Celebrating 80 years of service BROADWAY TERMINAL The photo at right shows Broadway Terminal in 1977, six years after the SJPC took it over after the demise of the New York Ship Building Corp. The photo at the left show the Terminal in 2006, with the new Kocks crane and pier and the Holcim (formerly SLC) plant. The location of the Holcim plant is at the very bottom of the photo where the rail lines are shown. continuing operation of the Port of Camden by the State of New Jersey. The SJPC is the inheritor of much of the important maritime history of Camden as well as a vital contributor today to the better prospects of the city and maritime business expansion are and Salem Counties). and maritime commerce and the South Jersey region. During vital to the future of the city, of Long before 1927, the City industry. In fact Cooper’s family 2007, despite several decades of South Jersey and of the seven- of Camden had been established in 1695 created Cooper’s Ferry, decline and distress, Camden county port region represented on and, from its beginning as a one of the earliest commercial remained central to the region the Board of Directors of the SJPC modest settlement founded by endeavors on the Delaware River, and to its