The Gulf Coast Advantage: A Regional Approach to Marketing & Preparing for the Panama Canal Expansion

Transcription

1 The Gulf Coast Advantage: A Regional Approach to Marketing & Preparing for the Panama Canal Expansion

2 Port of Tampa Largest, most diversified port in Florida $8B in economic impact/supports nearly 100,000 jobs Largest economic engine in West Florida Solid financial performance, even during economic downturn Encompasses 5,000 acres Approx. 40M tons cargo/year nearly 40% of FL waterborne trade Energy products gateway of West/Central Florida-critical to economy Premier U.S. fertilizer port Large/diverse bulk and break bulk business Shipyard/ship repair center Top ten cruise homeport Carnival, RCI, HAL, NCL Expanding container/distribution center gateway Petroleum Phosphate Building Materials Cruise Containers

3 Containers Concentrate In Population Centers

4 Estimated Market Shares Far East to USEC/Gulf Mini-Landbridge 65% 80% 30% 15% All-Water 35% 20% 70% 85%

5 Panama Canal Expansion Lock Chamber Length: 427 m Width: 55 m Depth: 18.3 m Vessel size LOA: 366 m Beam: 49 m Draft: 15.2 m

6 Logistics & Supply Chain Implications Distribution Strategies Cost & Transit Time Considerations Commodity Sensitivities While ocean carriers seek to reduce their costs, including through larger ships/economies of scale, ultimately, exporters and importers determine cargo routing by optimizing their supply chains

7 Distance Comparison SHANGHAI 5699 miles LOS ANGELES NEW YORK 8566 miles PANAMA CANAL

8 Ocean Carriers Economics & Perspective Larger ships + economies of scale Profitability vs market share strategy Inability to raise rates to a compensatory levels Focus on lowering operating costs Larger ships Slow steaming Minimize inland rail/trucking costs

9 Global Container Shipping Industry Profit/Loss (US$ Billions) Source: AXS Alphaliner

10 Cargo Owners Economics & Perspective * Diversify route options and minimize exposure * Geography does not change, despite Canal expansion *All water delivery China to US Midwest via east coast vs west coast/intermodal = extra 7+ days transit time *Lower value/seasonal vs higher value/time sensitive * Transloading * Ultimately cargo owners (importers and exporters) drive cargo flows and determine routings not ocean carriers

11 Assumptions $400/MT bunker Canal tolls based on 2011 proposal Current ship charter rates Inland move by rail For a typical Asia-USEC voyage, shifting to an 8000 TEU vessel expands the market reach of the USEC ports 4000 TEU ship 8000 TEU ship 46%* 63%* Left of the black line = West Coast has the cost advantage Right of the black line = East Coast has the cost advantage * Share of the US population

12 Waterside & Landside Access *How deep is deep enough? *East Coast & Gulf Coast *Transshipment will play a role *Deep water is important but efficient road and rail access to customers is key

13 Caribbean Transshipment Triangle United States Tampa Freeport Mexico Kingston Caucedo Colon/MIT Cartagena South America

14 Panama Container Terminals Increase from 235K TEUs in 1996 to 6.5M TEUs in 2011

15 Profile of main ports in the region (movements in 000 of TEUs for 2010 and number of quay cranes) Port name Movement in TEUs Quay cranes Santo Tomás 392K 1 Puerto Barrios 326K 1 La Habana 228K 0 Freeport 1,125K 16 Caucedo 1,004K 5 Haina 288K 3 Puerto Cortes 583K 2 Jarry 150K 4 Limon /Moin 858K 1 MIT/CCT/Cristobal 2,810K 34 Kingston 1,891K 19 Puerto Quetzal 583K 0 Acajutla 145K 0 Caldera 155K 0 Balboa/PSA 2,758K 25 Cartagena 1,581K 12 Buenaventura 662K 4 Barranquilla 103K 0 La Guaira 333K 5 Puerto Cabello 800K 0 Point Lisas 184K 2 Port Spain 389K 5

16 Tampa among the deepest draft ports in Florida and along the Gulf Coast REPORTED STATE PORT Florida Tampa 43 CHANNEL DEPTH Jacksonville 40 Miami 42 Port Manatee 40 Port Everglades 42 Alabama Mobile 45 Louisiana New Orleans 40 Texas Houston 40

17 Container Terminal Expansion Currently 40 acres; expansion to 160 acres planned 4 container cranes; 2 more under consideration 43 foot deepwater channel/berths Plans to quadruple capacity; enough to handle all Cent. FL demand

18 Tampa Gateway Rail Project Joint TPA-CSX multi-modal initiative Florida s only on-dock unit train terminal Ethanol, containers, other cargo Scheduled for completion in 2012

19 I-4 Connector Project Elevated express highway access between Port and Interstate System, scheduled for completion summer 2013 Dedicated Truck Lane

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21 * * Three strong, distinct, complementary markets * Proximity to expanded Panama Canal * Balanced trade characterized by robust exports to multiple lanes * Expanding logistics gateways, distribution centers and industrial parks driving cargo density 21 * Extensive terminal facilities on deep water, with plans for additional expansion

22 * D E M O G R A P H I C S Combined population of 97.2 Million. 32% of the U.S. population Fastest population growth in the U.S. Combined GDP of US$4.1 Trillion. 29% of U.S. Gross Domestic Product Access to major hubs like Dallas/Ft. Worth, New Orleans, Memphis, Atlanta and Orlando in 8 hours or less 22

23 Panama - US Gulf R/T mileage Colon Houston 1,539 Houston Mobile 539 Mobile Tampa 386 Tampa Colon 1,216 total distance 3,680 Versus Panama - USEC R/T mileage Colon Savannah 1,563 Savannah Norfolk 503 Norfolk NY 294 NY Colon 1,974 total distance 4,334 Source: Panama Canal Authority The Gulf Coast Advantage: mile reduction or -15% * C O S T S A V I N G S via & the Suez R Canal E V E N U E E A R N I N G O P P O Asia as compared to USEC R T U N I T Y Shipping via the Panama Canal is less costly than USWC rail or Shorter nautical miles from ports, a 15% savings from Panama Canal Eliminates mini-land bridge cost Balanced import / export trade allows for even matchback to multiple trades Higher terminal efficiency levels with favorable labor environment No local port or terminal fees related to clean air, congestion or capital improvement Traditionally, a higher revenue market

24 O U R B U S I N E S S Top Importers Wal-Mart The Home Depot HOUSTON MOBILE TAMPA Top Import Commodities GDSM Home Improvement Top Importers Honda, Hyundai, Kia, Mercedes, Nissan, Toyota Big Lots, Dollar General Top Import Commodities Top Importers Top Import Commodities Auto Parts Rooms to Go Furniture GDSM Beall's General Merchandise Fox Conn / Hon Hai Electronics Standard Furniture Furniture Publix Grocery Products Ashley Furniture Furniture Evonik Chemicals Lowe's Building Materials Crown Mark Furniture CAFFCO Art Flowers Pepsico/Tropicana Juice Concentrate Top Exporters Top Export Commodities Top Exporters Top Export Commodities Top Exporters Top Export Commodities Shintech Resin Sabic Resins Amalie Engine Lubricants ExxonMobil Chemicals GP Cellulose, IP Forest Products Sysco Food Products JBS / Swift Frozen Meat Ascend Performance Coca Cola/ Chemicals Materials Minute Maid Frozen Citrus Pulp Noble Cotton Cotton Tyson, Pilgrims, Sanderson Frozen Poultry Mosaic Feed Supplements Halliburton OWS Staplcotn Cotton Citrus World Frozen Citrus 24 Pulp

25 The Gulf Coast Advantage: A NEW BUSINESS OPPORTUNITY 25 *9 Million + TEUs potential *Attractive alternative to the USWC / USEC *Large and under-served market *Lower cost *Terminal expansion projects in progress *A new frontier

26 Thank You!