Virginia Maritime Association. Voice of the Port. VMA s Mission

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1 Virginia Maritime Association Voice of the Port VMA s Mission PROMOTE, PROTECT, AND ENCOURAGE INTERNATIONAL & DOMESTIC COMMERCE THROUGH THE PORTS OF VIRGINIA 1

2 VMA Structure & Priorities Membership over 400 companies with over 70,000 employees in Virginia Facilitating Commerce & Port Competitiveness Education & Awareness of the Port Navigation & Port Infrastructure Development Information Services Industry Watchdog and Advocate Ports of Virginia 2 nd largest on East Coast in tonnage & 3 rd in containers Largest ship building & repair complex on East Coast 2,840 commercial ship arrivals in 2013 Over 80 million tons of cargo moved containers, coal, autos, steel, paper, grains, cement, fuel, minerals, fertilizers, aggregates, etc. Nearly 1 in 10 Virginia jobs & over $41 billion in business revenue connected to the Port 2

3 Ports of Virginia Ports of Virginia 3

4 Hampton Roads Harbor NNMT, DTA & KM Pier 9 Future CIMT NIT APM Terminals NS Pier 6 PMT LPD 2013 Ship Activity 2,840 Commercial Ship Arrivals 1,690 Container Ships 600 Coal Ships 550 Other Cars, Paper, Grain, Petroleum, Scrap, Wood Chips, etc. 4

5 Leader in Coal Exports Port of Hampton Roads is the largest coal port in the U.S. Over 40% of U.S. coal exports. Over 50 million tons moved in Bulk Terminals Bulk Cargoes Coal, Soy Beans, Wheat, Barley, Fertilizer, Portland Cement, Petroleum Gas, Scrap Metal, Limestone, Fuels, Wood Pellets, Gypsum, Etc. Efforts are underway to deepen the Southern Branch of the Elizabeth River. Increased capacity will drive growth in bulk and breakbulk facilities. 5

6 RoRo Rubber Lumber Breakbulk Cargoes Over 600,000 tons of breakbulk and project cargo are handled annually. Approximately 1 million square feet of multi use warehouse area. Ro/Ro berths with extra wide aprons provide easy access and maneuvering room. On dock rail enables fast turnaround Steel Pulp & Paper Autos One 40 ft. Container (Equal to two Twenty Foot Equivalent Units (TEU s)) 1,512 $27.98/case = $42,306 Cases = 84,000 Music $11.99/ea = $1,007,160 = 4,500 pairs Prada $368.00/pair = (mid-season sale) $1,656,000 = $799/ea = $119,850 Smart TVs 6

7 VPA Terminals From The Port of Virginia If it s in our stores, chances are it came through our shores International Container Arrives at The Port via Ship International Container is Loaded Onto a Truck Container Arrives at Distribution Center via Truck International Container Arrives at The Port via Ship Over 61,000 tons of goods pass through our port daily 7

8 Mid Atlantic U.S. Location The Port of Virginia The Port of Virginia is within a day s drive of two thirds of the U.S. population. Intermodal Gateway Over 2.2 Million TEU s in 2013 transported by: 4% Barges 34% Rail 62% Trucks 8

9 Selected Manufacturing & Distribution Facilities Norfolk Southern 9

10 CSX Record of Growth 10

11 Port Economic Contribution 343,000 Port and Port Related Jobs = 9% of Virginia s Workforce $41 Billion in Annual Economic Impact $13.5 Billion in Annual Employee Compensation $1.2 Billion in Annual State and Local Taxes Port growth results in more jobs and revenues for the Commonwealth Looking Forward Key Findings of U.S. Army Corps of Engineers 2012 Report to Congress on Post Panamax Shipping By 2030, 62% of container ship capacity will be Post Panamax Movements of TEUs through East Coast ports are expected to triple from current 15 million to about 45 million in

12 Expansion of the Panama Canal $5.25 billion capital investment program to modernize and improve the Panama Canal $190 million channel deepening project began in 2002 $1.6 million project to redesign a third set of locks Post Panamax Era 12

13 Suez Canal Port Said Mediterranean Sea Lake Timsah Bitter Lakes Suez Overall length: 120 miles Width: 590ft / 622ft Max. permissible draft: 62ft The canal is sea level, no locks. Sinai Peninsula 6-7 above deck below deck Suez Canal Ships too large for the new Panama Canal can transit the Suez 28 Across 15,000 TEU Containership 13

14 Panama Canal vs. Suez Canal Hong Kong, China Port of Virginia Panama Canal Suez Canal Suez Canal Via Panama Canal Distance: 11,021 nautical miles Via Suez Canal Distance: 11,705 nautical miles Big Ships Already Here MSC Bruxelles, July 18, 2011 Suez Canal 9200 TEUs Approx. 1,105 feet long 18 containers across 13 feet longer than the USS Ronald Reagan (CVN 76) Our channels and terminals can handle these vessels fully loaded unlike any other port on the East Coast 14

15 East Coast Port Preparedness Virginia is only one prepared for 12,000 TEU Post Panamax ships 1 to 3 million Metro Area Populations 6 million+ 150,000 to 1 million Emerging Mega Regions 2008 by Regional Plan Association 3 to 6 million Miami 42 ft Savannah 42 ft NY/NJ 45 ft Charleston 45 ft Baltimore 50 ft Virginia 50 ft Deep channels Intermodal connections to population centers Unobstructed water access Expansion capability CIEE permits Only Port Able to Handle Largest Vessels Fully Loaded JAX 38 ft 4,500 TEU NY/NJ Savannah 42 ft Charleston 45 ft 8,500 TEU Norfolk 50 ft 12,500+ TEU Norfolk 55 ft (authorized) 15

16 Port Priority Projects Maintain the Norfolk Harbor Channel and Craney Island Dredge Disposal Area. Deepen the Southern Branch to the 45 foot and 40 foot Authorized Project Level. Construct the 55 foot Norfolk Harbor Project. Construct the Craney Island Eastern Expansion. Port Priority Projects UNRESTRICTED NAVIGATION FOR THE PORT OF HAMPTON ROADS WIDER DEEPER SAFER 16

17 Phase 1 June 2025 Total Acreage: 220 Pier Length: 3000 ft. Depth: 52 ft. Cranes: 6 Capacity: 1.5M TEUs Cost: $1.2B Future Craney Island Marine Terminal What the Experts Say Virginia has the greatest upside of any port in North America. Mike Moore, CEO Global Terminals December 2, 2010 Among the container ports on the US East Coast, only the Port of Virginia can claim to be ready to handle the larger post- Panamax ships that will be able to transit the Panama Canal. Lonely in the Lead The Journal of Commerce December 6, 2010 The port at Norfolk, Va., is 50 feet deep, and is the only one on the East Coast that can handle the biggest, fully loaded container ships. A Race to Capture a Bounty From Shipping New York Times December 11,

18 THANK YOU Art Moye Executive Vice President Virginia Maritime Association

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