GFTC 2017 Griff Lynch Executive Director, GPA February 7, 2017

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1 GFTC 2017 Griff Lynch Executive Director, GPA February 7, 2017

2 IT S YOUR SHIP PORT

3 OPERATING A PORT IS A LOT BY THE NUMBERS LIKE RUNNING A TIGHT SHIP ECONOMIC ENGINE Chap. 7: Look for Results, Not Salutes INDUSTRY DYNAMICS Chap. 4: Listen Aggressively Chap. 9: Go Above and Beyond EXPANSION CAPABILITY Chap. 8: Take Calculated Risks Chap. 10: Generate Unity NEXT STEPS

4 CHAPTER 7: LOOK FOR RESULTS, NOT SALUTES Judge performance by results

5 RECORD DOUBLE-DIGIT BY THE NUMBERS GROWTH ECONOMIC ENGINE INDUSTRY DYNAMICS Nov. 2016: +5.8% Dec. 2016: +12.3% Jan. 2017: +16.2% VALUE PROPOSITION

6 10K+ TEU VESSEL CALLS AT EAST COAST PORTS FYTD (JUL 1-DEC 31, 2016) SAV NOR NY/NJ CHA MOB MIA JAX Source: American Shipper BlueWater Reporting & Carrier Websites January 2017

7 CHAPTER 4: LISTEN AGGRESSIVELY We listened to your concerns about an industry in transition

8 WATERSHED MOMENT 2016 VS Alliances (16 carriers) 3 Alliances (12 carriers) 2M O3 CKYHE G Maersk MSC CMA CGM China Shipping UASC COSCO K Line Yang Ming Hanjin Evergreen APL Hyundai MOL Hapag Lloyd NYK 2M + HMM OCEAN THE Maersk MSC Hyundai CMA CGM (APL) China COSCO Evergreen OOCL Hapag (UASC) NYK MOL Yang Ming K Line

9 NEOPANAMAX VESSELS: CALLING GPA IN GROWING NUMBERS IN 6 MONTHS SINCE PANAMA CANAL EXPANSION, SHEP MORE CRITICAL THAN EVER 56% OF ALL VESSELS CALLING ON SAVANNAH ARE NEOPANAMAX 10,100 TEU MOL Benefactor

10 AVERAGE CONTAINER MOVES PER BY THE NUMBERS VESSEL UP SHARPLY ECONOMIC Since ENGINE Panama Canal INDUSTRY expansiondynamics +16% Average container moves/vessel* EXPANSION CAPABILITY NEXT STEPS *June vs. December 2016; GPA Marketing

11 GARDEN CITY TERMINAL CONTAINER BERTHS 1-3 GOOGLE CIRCA EARTH

12 CHAPTER 9: GO ABOVE AND BEYOND Keep priorities in focus

13 CONSOLIDATED ALLIANCES AND LARGER VESSELS REQUIRE INFRASTRUCTURE INVESTMENT: Water On Terminal Road Rail

14 WATER SUPPLY IMPROVEMENT 56% COMPLETE OXYGEN INJECTION 13% COMPLETE SAVANNAH HARBOR EXPANSION PROJECT (SHEP) UPDATE DIKE RAISING 59% COMPLETE Overall project: nearly 20% complete CSS GEORGIA 80% COMPLETE CHANNEL DEEPENING ENTRANCE CHANNEL 40% COMPLETE

15 ON TERMINAL EXPANSION NEW GATE 8 +20% INCREASE IN GATE CAPACITY NEW CONTAINER YARD +15% INCREASE IN YARD CAPACITY

16 +36% 8 NEW INCREASE IN CRANE FLEET SHIP-TO-SHORE CRANES TOTAL % INCREASE IN RTG CRANE FLEET 30 NEW RTG CRANES TOTAL 146

17 LAST-MILE PROJECTS GRANGE ROAD Complete by end of 2017 Cost: $24M BRAMPTON ROAD CONNECTOR Complete October 2020 Cost: $48M JIMMY DELOACH CONNECTOR Cost: $107M 900 hours/day reduction in truck traffic 5,000+ trucks/day removed from Highway 21

18 INLAND TERMINALS Appalachian Regional Port Appalachian Cordele Port Intermodal AtlantaRegional Services Port: Construction has begun! 4,700 MILES OF RAIL AND COUNTING Port Atlanta Cordele Intermodal Services SAVANNAH REQUIRING UP TO 100,000 FEWER TRUCKS

19 MEGA RAIL TERMINAL: NOW VS. FUTURE LIFT CAPACITY WILL INCREASE BY NEARLY 100% $44M FEDERAL GRANT AS PART OF $128M PROJECT GPA VIEWED AS A PORT OF NATIONAL SIGNIFICANCE GPA WILL HAVE LARGEST RAIL FACILITY ON EAST COAST

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21 GPA MID-AMERICAN ARC UNIT TRAIN READY 25 TRAINS/WEEK TO MID-AMERICA COMPETITIVE TRANSIT AND PRICING LARGEST SE INTERMODAL TRANSIT

22 CHAPTER 8: TAKE CALCULATED RISKS

23 BRUNSWICK S COLONEL S ISLAND 200 acres now in design/development stages Issue in Brunswick: future space Needed to stay ahead of growth curve Long-term goal: double capacity for cars and heavy machinery

24 ROOM TO GROW 504 ACRES TODAY 550 ACRES TOMORROW + = TO BE DEVELOPED AUTOS ON TERMINAL: 157,000

25 SAVANNAH AREA VACANCY RATE 6 months ago, GPA identified a problem in Savannah

26 AS OF Q CY VACANCY RATE TOTAL INVENTORY 48M SQ. FT % 18.57% 1.9% VACANCY 5.39% 8.70% 12.98% 14.31% 11.84% 9.03% 5.46% RATE 1% VACANCY FOR 100K SQ. FT. OR MORE % 1.93% Q2 Source: Colliers International

27 TODAY S ANNOUNCEMENT: NEARLY 5M IN SQ FT JUST SOLD FOR INTERNATIONAL TRADE PARK Just 5 miles from Garden City Terminal and 1 mile to I-95

28 TRADEPORT HOLDINGS, LLC Parcel 2 Parcel 3 Parcel 4 Parcel 5 Parcel 8 89 ac. 138 ac. 138 ac. 70 ac. 53 ac. Total in new development: 480 ac 2 existing tenants:

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30 CHAPTER 10: GENERATE UNITY GPA and ILA: All on 1 team

31 #1 for Business*: 3 Years in a Row Because we all work together TEAM GEORGIA Governor Deal GA Legislature GDED GA Quick Start GPA *Area Development Magazine

32 THANK YOU!

Container Shipping Industry: Facing Another Difficult Year

Container Shipping Container Shipping Industry: Facing Another Difficult Year Industry Outlook: Negative Executive Summary 15 June 2012 Ruangwud Jarurungsipong ruangwud@trisrating.com Nopalak Rakthum nopalak@trisrating.com