2015-08-01 - PAGI-Seaport- JLL

Seaport Outlook

Port, Airport & Global Infrastructure (PAGI) research North America | 2015

JLL | North America | PAGI Seaport | 2015 2

A new Panama Canal will open early next year, and – given recent labor issues at U.S. West Coast ports – many of JLL’s clients are asking how the continent’s industrial seaport markets will be affected. We evaluate the trends to give you the answers.

The JLL North America Seaport Outlook provides a distinctive analysis of seaport-centric industrial space in gateway real estate markets. Observing the influence of global economic drivers, including trade and cargo flows, socioeconomic and political factors, as well as port capacity and infrastructure investment, it provides both a macro overview of current trends impacting the domestic sector in addition to detailed information on major seaports. This report explores industrial property fundamentals in a 15-mile radius from seaports, given a minimum building size of 50,000 square feet.


Key takeaways 4

Industrial occupancy strong on both coasts 5

TEU market share has been shifting to the east 8

TEU fluctuations, by seaport 8

Status update in Panama 9

Six key developments that will

Impact seaport-related real estate 10

Seaport property clock 12

2015 PAGI Index Score methodology 13

Select top seaports and property market indicators 14

Local seaports 15

Port of New York / New Jersey 16

Port of Long Beach 18

Port of Los Angeles 20

Port of Savannah 22

Port of Tacoma 24

Port of Metro Vancouver 26

Port of Baltimore 28

Port of Houston 30

Port of Charleston 32

Port of Virginia 34

Port of Montreal 36

Port of Oakland 38

Port of Jacksonville 40

Port of Miami 42

Port of Seattle 44

Port, Airport & Global Infrastructure report authors 46

Table of contents

• Market share shifts east: Shippers continue to diversify how goods enter and leave the country as a way to mitigate potential supply chain disruptions. What was once a 61.2 percent TEU market share for West Coast ports in 2007 has since declined to 55.2 percent.

• Industrial occupancy is healthy on both coasts: West Coast seaport markets had a collective occupancy increase of 2.2 percent in 2014 compared to 2007, while Gulf/East Coast markets were up 4.4 percent over the same time period.

• Not all industrial markets are created equal: Many older seaports are constrained by the cities that built up around them, and not all available facilities are viable options for today’s industrial users. Lack of functioning obsolescence can be an issue—this can put upward pressure on rents for quality, relevant space in markets like New York / New Jersey, Los Angeles and Oakland.

• There are different types of cargo: Much of the highly publicized cargo shift to the eastern seaboard is discretionary (goods not destined for local consumption, but can move through any entry point of the shipper’s choosing). At the end of the day, seaport markets based in notable population centers are faring well: It’s a matter of where goods ultimately end up rather than where they enter the continent.

• New York, New York: The Port of New York / New Jersey, for the fourth consecutive year, outranks all other seaports based on JLL’s PAGI scoring methodology. 2014 TEU volume was up 40.9 percent from 2007, and several large block availabilities – albeit, in generally older facilities – offer options to

industrial users. New infill development will help satisfy demand for modern space.

• Two and three: Long Beach and Los Angeles round out our top three. Industrial vacancy in both markets is under 4.0 percent, and their collective TEU volume is 2.5x that of New York / New Jersey. They are anticipated to remain the primary gateway into the United States in the years to come based on their infrastructure, automation enhancements and strong rail connectivity to interior U.S. markets.

• Savannah, Charleston and Virginia are well-positioned: An expanded Panama Canal is scheduled to debut in the first half of 2016, and these ports – along with New York / New Jersey – offer access to battleground, densely populated regions. Each has strong rail connections, and more West Coast discretionary cargo will likely call on these ports.

• Eighty-seven percent: of the world’s fleet, in terms of total TEU capacity, will be able to traverse the new Panama Canal, according to the Journal of Commerce. Additionally, as much as 10.0 percent of container traffic between East Asia and the United States could shift from U.S. West Coast ports to their eastern seaboard counterparts by 2020, according to research from The Boston Consulting Group and C.H. Robinson. Although the aforementioned East Coast ports may receive increased TEU traffic, it cannot be assumed that demand for warehouse space will transfer equally. There are too many complexities and variables (freight rail costs, intermodal, automation, etc.) in the movement of goods to portend a macro shift in industrial occupancy from the West Coast to eastern seaboard markets.

Key takeaways

4 JLL | North America | PAGI Seaport | 2015

Industrial occupancy strong on both coasts


Laying the groundwork for a bigger shift Merchant shipping is the lifeblood of the world economy and transports 90.0 percent of international trade. Yet, serious cracks have appeared in the U.S. landscape after an 11-month disagreement between the Pacific Maritime Association (PMA) and International Longshore Warehouse Union (ILWU) crippled West Coast seaports during the 2014 holiday season and carried over well into the first half of 2015. Described as a “perfect storm” of events, the ordeal reinforced a progressive cargo market share shift that has occurred from West to East Coast ports, and pushed the notion that an expanded Panama Canal will likely expedite the cargo shift trend once it opens. Intensifying competition among major seaports seems to be given over the next 10 years, but what about their adjoining industrial markets? How will they fare? TEUs and industrial occupancy In this report, JLL tracks North American warehouse/distribution and manufacturing facilities in excess of 50,000 square feet within a 15-mile radius of 15 major seaports. Thirteen seaports are based in the United States, while the remaining two are in Canada. The 15 markets comprise 1.6 billion square feet of existing stock, or 11.6 percent of Canada and the United States’ combined inventory. These seaport-centric markets largely cater to occupiers that have fast moving, high cost and time sensitive products (such as food & beverage and 3PL tenants). Fluctuations in TEU volumes affect industrial space needs, and a substantial drop in cargo traffic will, for instance, prompt a decline in industrial occupancy. Conversely, an increase in TEU volume will lead to occupancy increases. This especially applies to imported goods, which, in the case of the United States, totaled $2.37 trillion in 2014, or 60.0 percent of two-way trade. More imports translate to more warehouse space needs. West Coast seaports West Coast seaports – Vancouver, Tacoma, Seattle, Oakland/East Bay, Long Beach and Los Angeles – have collectively lost containerized traffic to their eastern seaboard counterparts in recent years: Going from a 61.2 percent annual market share in 2007 to 55.2 percent in 2014. If the cargo-to-industrial-space-needs correlation holds true, then West Coast occupancy figures should have decreased, but this is not the case when

surveying the data: Although 2014 TEU volume was down 2.2 percent (529,010 containers) from 2007’s peak, occupancy was slightly up by 2.6 percent.1

Tacoma led West Coast seaport markets in occupancy gains with 9.0 million square feet, and much of this is due to its location in Pierce County where much of greater Seattle’s industrial development is occurring. A highly mature Los Angeles was second with 4.0 million square feet; infill and re-developments in recent years account for this increase. In the end, West Coast seaport markets had a collective 4.5 percent vacancy by year-end 2014 – a rate that is highly landlord-favorable. Gulf/East Coast seaports Gulf/East Coast seaports’ combined TEU traffic in 2014, on the other hand, exceeded 2007 by 25.3 percent (3.9 million containers), while occupancy was up 4.5 percent over the same period. One reason for the eastern seaboard’s occupancy jump is population: In the case of the United States, two-thirds of the nation’s population resides east of the Mississippi River, with high densities in the Northeast and Mid-Atlantic, and notable pockets in the Southeast. The Port of New York / New Jersey is in the heart of the Northeast; Baltimore and Virginia (only 350 miles apart) serve the Mid-Atlantic; Charleston and Savannah (roughly 60 miles apart) cater to Atlanta; and Miami and Jacksonville handle the Florida catchment area. Over the last three years, most eastern seaboard markets have seen healthy annual net absorption gains and new construction has been minimal.

West Coast seaports (and their immediate industrial markets)

620

630

640

650

660

670

15.0

17.5

20.0

22.5

25.0

2007 2008 2009 2010 2011 2012 2013 2014

Occupied s.f. (in millions)

TEUs

(in m

illion

s)

TEUs Occupied s.f.

1 Vancouver had remarkable TEU growth over the 2007-2014 timeline, however. U.S. port labor matters do not affect Canada, which rendered Vancouver a viable Plan B to recent U.S. West Coast issues.

6

At the end of the day, more TEUs lead to higher occupancy levels in markets with functional space on hand: • Savannah’s realized a 28.5 percent cargo increase from 2007 to

2014, while its adjacent industrial market’s occupancy increased by 41.3 percent (9.4 million square feet).

• Houston’s traffic increased by 11.3 percent, and occupancy grew by 24.0 percent (8.7 million square feet).

• Virginia’s cargo grew by 12.4 percent, and occupancy rose by 4.4 percent (1.4 million square feet).

Seaport markets like Savannah and Houston, aside from cargo growth, also have available land for development. Their year-end 2014 vacancy rates of 5.6 percent and 3.7 percent, respectively, were well below the Gulf/East Coast’s 7.5 percent average. For Houston, the port’s immediate market has seen a drastic increase in net rents of $0.72 per square foot per year, and overall vacancy has steadily decreased quarter-over-quarter as more tenants are moving into the market or expanding. Population centers and rent premiums TEUs and industrial occupancy are complementary, as a dip in the recessionary year of 2009 highlights, yet the bigger question is where cargo’s end destination/point of origination is. In the case of Los Angeles and Long Beach, the nation’s busiest seaports, two-thirds of all incoming cargo is discretionary, meaning it is bound for markets like Dallas / Fort Worth and Chicago. While market share declines at Southern California’s

seaports may be a concern for port officials, the impact of a cargo shift has yet to impact the region’s industrial markets. Established markets home to large consumer bases are expected to continue to prosper, and seaport-adjacent product will often command rent premiums in relation to a given market’s greater average. The premiums often stem from quality space, however: Many older seaport industrial markets are constrained by the cities and other property uses around them, and not all available facilities are viable options for today’s industrial users. Obsolescence, or a lack of functioning or quality space, can be an issue and this can put upward pressure on rents for relevant, quality space in markets like New York / New Jersey, Los Angeles and Oakland. Users with larger footprint requirements will often look further inland for more modern space. The East Coast’s established (and up-and-coming) seaports The Port of New York / New Jersey is the nation’s third busiest and its cargo volumes exceeded 2007 levels by a staggering 40.9 percent. A 2002 10-day lockout at U.S. West Coast ports (in addition to their recent aforementioned labor issues) are big factors in the port’s growth. With direct access to the Northeast’s highly dense population, volumes will only increase – especially when a raised Bayonne Bridge is ready by the second half of 2016. This will pave the way for ships carrying up to 14,000 TEUs to call on the port as they traverse the Suez Canal or a newly expanded Panama Canal. On-dock rail connections with the new ExpressRail System will help expedite traffic flows, as cargo makes its way via Norfolk Southern and CSX rail lines throughout the Northeast. The uptick in cargo volume is already impacting net absorption totals in greater New Jersey and Philadelphia’s industrial markets: Vacancies are at or very near last cycle’s lows. Savannah is the fourth busiest container seaport with 2014 volumes exceeding 2007 by 28.5 percent. Although Savannah’s immediate industrial market is the second smallest in this study with 32.7 million square feet, development activity has been substantial in recent years with 22.7 percent of its stock built from 2007 to the present. The market is essentially a quickly growing throughput hub, where companies such as Home Depot and The Dollar Tree have large facilities to sift through cargo before most of it is routed via CSX and Norfolk Southern rail lines to Atlanta. Port volume growth has been explosive over the past few decades, and much of this can be traced to the Southeast’s emergence as a major manufacturing hub.

JLL | North America | PAGI Seaport | 2015

Gulf / East Coast seaports (and their immediate industrial markets)

780

800

820

840

860

10.0

12.5

15.0

17.5

20.0

2007 2008 2009 2010 2011 2012 2013 2014

Occupied s.f. (in millions)

TEUs

(in m

illion

s)

TEUs Occupied s.f.

Select seaport industrial markets in notable population centers

Immediate MSA population

(in millions)

Seaport market size

(m.s.f.)

Average construction date

Seaport rent

Greater market rent

Seaport rent premium

vs. greater market New York / New Jersey

23.6 308.5 1956 $6.46 $5.24 23.3%

Los Angeles 13.0 132.1 1977 $7.83 $7.00 11.9%

Oakland 4.6 87.2 1963 $7.76 $6.98 11.2%

Seattle 3.6 92.2 1973 $6.17 $5.82 6.0%

Miami 5.9 102.1 1982 $7.08 $6.74 5.0%

7

Charleston only ranks ninth in our survey in annual TEU volume, yet 2014’s cargo volumes surpassed 2007 by 38.9 percent. Charleston, like Savannah, is a throughput hub and has the smallest industrial base in this study with 20.3 million square feet, and one of its core strengths lies in its rail connectivity. Namely, an on-dock Norfolk Southern line (with double-stacking capabilities) runs 212 miles inland to Greer, South Carolina. Greer is home to the 220-acre South Carolina Inland Port (opened in 2013), where Michelin and other international manufacturers operate. The location is within a one-day drive time to more than 95 million consumers, and the rail line serves as a vital land-to-water bridge to send exports to global markets. BMW, for instance, uses rail to transport about 70.0 percent of the 1,200 cars it makes daily at its Greer plant to the seaport. Virginia is an access point to the Mid-Atlantic’s population and has on-dock rail connections – with double-stacking capabilities – to markets like Columbus and Chicago via Norfolk Southern’s “Heartland Corridor.” Both Virginia and Baltimore have channels deep enough to handle today’s modern container vessels, yet Virginia’s double-stacking rail network gives it a distinct advantage over its neighbor to the north.

JLL | North America | PAGI Seaport | 2015

Conclusion and key takeaways • TEU volume from our 15 surveyed seaports reached 43.4

million containers in 2014, surpassing their 2007 total by 8.5 percent.

• TEU volume in 2014 was up 4.6 percent from 2013.

• West Coast discretionary cargo will continue to shift to the eastern seaboard.

• The Ports of New York / New Jersey, Savannah, Charleston and Virginia have had big increases in their TEU traffic since 2007; their infrastructure connectivity to inland markets makes them ports to watch when a new Panama Canal opens.

• Rail connectivity to and from a seaport matters. It helps alleviate congestion, is a cheaper alternative to long haul trucking and links seaports to interior markets; read JLL’s whitepaper, “The re-emergence of the iron horse” for additional details.

• Inland port development, such as in West Virginia, continues to be a focus of many port authorities who do not have proximate population densities but do not want to lose control of cargo flows and associated fees.

• Industrial occupancy is healthy in both West and East Coast seaport markets. This is good news for landlords of quality product since they can more aggressively push rents.

• Vacancies in seaport markets like Baltimore and New York / New Jersey will likely remain flat—obsolete inventory will sit dormant and available as tenants look farther inland (or to adjacent markets or submarkets) for modern space. An opportunity exists for infill or redevelopment, however, if market rents begin to exceed replacement costs.

• Fundamentals are tightening in all seaport markets, and those with quality industrial real estate located in population centers will continue to see rents outpace greater market averages.

LA/LB will still remain the dominant player


but Vancouver and several East Coast ports had big gains

-3.2%

-11.5% +16.7% +0.3%

+40.9%

+28.5 +12.4% +11.3% +38.9%

+2.9% +48.0% -0.9% +25.1%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000 2014 vs.2007 TEUs (% change)

West Coast seaports

East Coast seaports

LA-LB still leads NY/NJ by a factor of more than 2.5x

TEUs have been shifting to the east A new Panama Canal will advance this trend

Tacoma

West coast seaports, market share

Gulf/east coast seaports, market share

Oakland

New York / New

Jersey

Seattle

Houston

Miami

JAX

Savannah

Charleston

Virginia

Baltimore

Long Beach

Los Angeles

61.2% in 2007

to

55.2% in 2014

44.8% in 2014 from

38.8% in 2007

6.0%

Vancouver

Montreal

Source: JLL and individual seaports

TEUs

Status update in Panama


Ninety percent complete The final set of locks were installed as of June 2015, as engineers flooded the new canal to begin compliance and operational tests. The Panama Canal’s expansion, which will accommodate containerships with a 12,000- to 14,000-TEU capacity, dependent on a vessel’s design and load configuration, is slated to open April 2016. This TEU haul capacity marks a 2.5x increase from current canal vessel restrictions. Eighty-seven percent of the world fleet, in terms of total capacity, will be able to navigate the canal, while 157 ships, with a total fleet capacity of 2.7 million TEUs (in service and on order) are too large for the new passageway.2 As much as 10.0 percent of container traffic between East Asia and the U.S. could shift from U.S. West Coast ports to their eastern seaboard counterparts by 2020. West and East Coast TEU rivalry to intensify Historically, 43.0 percent of U.S. incoming traffic moves through the Ports of Los Angeles-Long Beach, of which two-thirds makes its way by rail to major markets in the Midwest and the Northeastern United States. While this was the cheapest and fastest option to transport goods from, say, Shanghai to New York, PMA-ILWU labor issues have tarnished sole reliance on this approach. Shippers, as a result, are calling on multiple ports to help mitigate potential supply chain disruptions. Discretionary cargo shifts from the West Coast to the eastern seaboard ports are here to stay, and the new canal will likely expedite this trend, given its two primary benefits: 1) Being able to accommodate larger vessels, and the economies-of-scale they offer to shippers in the form of reduced transport costs per TEU; and 2) Speed—a Post-Panamax vessel can reach New York two to three days faster through Panama than the Suez Canal. The canal will still compete with the Ports of Long Beach and Los Angeles, however, which are automating many of their terminals and have strong rail connections to Southwest and Midwest markets. Multiple points of entry Shipping rates, transit time and reliability are some of the things that ultimately influence how cargo enters and leaves the continent, and the canal faces competition from several trade routes. Returning to the Shanghai-to-New-York example, a list of popular routes and their average transit time (barring potential disruptions) include: • The Port of Los Angeles to intermodal rail: 19-22 days • Panama Canal to the Port of New York / New Jersey: 25-26 days • Suez Canal to the Port of New York / New Jersey: 27-28 days

These trade lanes will, however, face increasing competition from Canadian and Mexican seaports as their land-bridging rail networks evolve. For instance, the Canadian National Railway will build a new terminal outside of Toronto that will increase its annual capacity by 350,000 containers and expedite cross-border trade with the United States. In the case of Mexico, APM will open a new terminal at Mexico’s Lazaro Cardenas by 2016, which will welcome mega-vessels at the port, and increase TEU capacity by 1.2 million containers. Kansas City Southern, the exclusive rail service provider to the port – with connections through Texas (and links to the continent’s greater rail network) – is anticipated to see an uptick in intermodal volumes when the terminal opens. In the fourth quarter of 2014, for instance, the railway noted a 30.0 percent volume growth in intermodal traffic tied to the port. The auto industry and the Panama Canal Automotive manufacturing in the Southeastern United States has grown exponentially in recent years with new facilities as of late for BMW and Volvo in South Carolina, Kia in Georgia and Mercedes in Alabama. All states in the region have right-to-work designation, many offer competitive economic incentives and Class I railroads are enhancing their networks’ connectivity. Ports like Savannah and Charleston offer access to Western Europe, and a new Panama Canal will reduce transit times to Asian markets. Mexico – with its giant labor pool and lower wages – continues to rival the Southeastern United States. For instance, Mexico’s vehicle production may easily reach five million cars per year by 2020, or a 56.0 percent increase from 2014’s total. The country also has a host of free trade agreements: Audi, for instance, will open a 3.2 million-square-foot assembly plant in 2016, and cited more than 40 pacts that give the company access to markets that contain 60.0 percent of the world’s economic output.3 Cold storage space on the rise South Florida remains a notable gateway for perishable goods imports, especially from Latin America, and cold storage space is in high demand. Other port markets are enhancing their cold chain footprints as well, with Preferred Freezer Services adding two new facilities in Houston in recent years and regional companies expanding their Savannah facilities to meet trade projections once the Panama Canal opens. In terms of port infrastructure, Miami recently doubled its reefer plugs while Savannah is aligning its already robust frozen exporting facilities to accommodate more perishable imports. Both ports now have on-site U.S. Customs and USDA officials for the faster dissemination of South American perishable items to the rest of the United States.

2 http://www.joc.com/maritime-news/container-lines/panama-canal-expansion-will-unleash-huge-supply-tonnage-all-water-services_20150528.html?mgs1=e65bkaHMJ3 3 http://www.wsj.com/articles/why-auto-makers-are-building-new-factories-in-mexico-not-the-u-s-1426645802.

http://www.joc.com/maritime-news/container-lines/panama-canal-expansion-will-unleash-huge-supply-tonnage-all-water-services_20150528.html?mgs1=e65bkaHMJ3

http://www.wsj.com/articles/why-auto-makers-are-building-new-factories-in-mexico-not-the-u-s-1426645802

Six key developments that will impact seaport-related real estate in the next few years


1. How does uneven GDP growth abroad affect the United States? Growth on a global scale has become woefully uneven with developing nations like China slowing, and countries across Europe hardly growing. The result has been a flight-to-quality by many market participants, which has produced a swift rise in the dollar. As a result, containerized ship exports have fallen nearly 30.0 percent over the past year, bringing them to their lowest level since 2010.

2. Will less manufacturing in China become a boon for other developing economies? China has begun the slow process of evolving its economy into one that is more service based, thereby reducing its dependence on manufacturing. Chinese wages have more than doubled over the past five years, and are likely to surpass those of other manufacturing based economies. As the country transitions, other economies around the world will have an opportunity to become alternatives to China. While some Southeast Asian economies may be best poised to take over China’s role, over the long-term several other new nations may be able to enter the fold.

3. Will a rise in Mexican manufacturing create greater demand for intermodal rail? And inland ports? Developing economies now make up 39.0 percent of global output. Over the next decade Mexico is expected to become a larger part of that output. The automotive industry has already begun to utilize the budding manufacturing hub, making the country the second largest exporter of cars to the United States. In response to Mexico’s growth, the trucking and rail industries have announced plans to increase their capacity and ability to service exports from the country.

4. Will labor strikes alone change the nature of cargo flows into U.S. markets? The reality is that labor disputes are often short-term glitches in the system and rarely have any long-term impact on shipper preference for ports of call. Yet, underlying operational inefficiencies and insufficient investment in port and near-port infrastructure do pose risks that could ultimately shift supply chain models that direct cargo in and out of U.S. ports. In terms of port readiness, when taking into consideration a trend toward larger capacity mega container vessels, West Coast ports are still the first choice for shippers of

goods destined for U.S. markets.

5. What projected investment is needed for U.S. ports over the next 25 years? Public investment in port and near-port infrastructure and operations is necessary to maintain a competitive advantage in today’s global economy. A recently released AAPA study, 2015 The State of Freight, found that public investment needs alone would exceed $30 billion by 2020 and a staggering $92 billion by 2040 just to maintain both navigational dredging and operation and maintenance needs. At current investment levels, the United States will fall short of these projections by nearly $46 billion over the same time period.

6. The dawn of the Triple E Class mega ship is coming, but will U.S. gateway ports be ready when they arrive? An 18,000 TEU ship has yet to land on North America’s shores. The largest vessel to date was the MSC Renee with a 13,119 TEU capacity, which called on APM Terminal’s Pier 400 at the Port of Los Angeles in March 2015. Despite the APM Terminal’s modern advancements, which make it the most advanced and automated port in North America, the terminal would not be prepared to handle the capacity of an 18,000 TEU vessel today. Port operators and the supporting local municipalities need to think and plan strategically about their port and near-port infrastructure and what capital investment is needed to handle the growing volume of container traffic that is destined for their ports.

1 Vancouver had remarkable TEU growth over the 2007-2014 timeline, however. U.S. port labor matters do not affect Canada, which rendered Vancouver a viable Plan B to recent U.S. West Coast issues.

Next economy?

Rising dollar

Near shoring

$ 92 billion investment needed by 2040


The JLL seaport property clock shows where industrial markets that are adjacent to major North American seaports are in their rental growth cycle. Markets generally move clockwise around the dial, with those markets on the left side generally facing more landlord-favorable characteristics, whereas those on the right experience generally tenant-favorable conditions. Pricing upswings can slow or reverse, as is indicated by what could be a temporary stall in a few markets, while others have surged in the past year as leasing velocity picked up.

Three of our seaports were in the peaking quadrant during 2014, and the count has since jumped to seven this year. Rents in these markets are beginning to resemble (and in some cases surpass) prior cyclical highs, and infill construction/redevelopment is occurring in most of them.

Landlord conditions are favorable in all seaport markets, and ten had clockwise movements this year, while the remaining five held steady.

In the case of the United States, the national aggregate position is just under the rising market quadrant. All 50 U.S. markets are rising, meaning landlords are increasingly gaining leverage across the country. Rent growth is prevalent and speculative construction is becoming more widespread in terms of both geography and size segments. Rents in the Class A sector have firmed and are on the rise in nearly all U.S. markets, while B product is recording gains, notably in the nation’s core logistics hubs. It is feasible the U.S. will enter the peaking quadrant by the second half of the year. For Canada, the country is hovering between the peaking and rising market quadrants.

Seaport property clock

Moving clockwise

Holding steady

Moving counter-clockwise

Peaking market

Falling market

Rising market

Bottoming market Port of Charleston, Port of Montreal,

Port of Virginia, Port of Savannah

Port of Baltimore

Port of Houston, Port of Miami, Port of Los Angeles Port of Seattle

Port of Oakland, Port of Tacoma

Port of New York / New Jersey

Port of Long Beach, Port of Vancouver

Port of Jacksonville

The PAGI score was created to provide a quick snapshot of North America's seaports from the vantage point of the real estate stakeholder — those who invest in, develop or occupy industrial property in port-centric locations. The index was based on 25 measurable performance metrics, divided into two major categories: terminal operating factors and the corresponding real estate market factors. The resulting index score is then a combination of the performance indicators, providing a subjective measure of a port’s value to JLL clients and their customers. The real estate metrics taken into consideration include the total amount of industrial real estate stock, the age of the inventory, vacancy rates and availability of suitable blocks of space within 5, 15 and 50 miles of each port. The highest real estate scores go to the ports that have a healthy supply of modern stock and with still plenty of options for port-related users to lease or buy. This year, the highest score belongs to New York / New Jersey with its dense and dynamic markets just a short drive from the terminals. The Ports of Long Beach and Los Angeles followed, and the divide was notable since their counts of available, larger blocks of space were less than New York / New Jersey. As a grouping, these three ports are well ahead of their competitors.

The terminal operating metrics are designed to capture the health and growth of the ports as well as their functionality and connectivity. These measures quantify the total volume of containers, short- and long-term growth in volume, rail connectivity, labor flexibility, lines of service and post-Panamax readiness. The winner in this category is the Port of Los Angeles due to its very large container volume, its rail connectivity and ability to accommodate today’s large, modern vessels. On the latter point, Los Angeles is already handling container ships too large to pass through an expanded Panama Canal. Long Beach is second, while New York / New Jersey, Savannah and Tacoma round out the top five. To produce the final JLL Seaport Index score the two components are weighted then combined. This year’s highest ranked port is New York / New Jersey at 129.5. Long Beach and Los Angeles follow with scores of 108.2 and 106.0, respectively. The remaining ports fall neatly into two distinct tier groups. A handful of those in the second and third tiers are garnering sizeable attention through ongoing infrastructure initiatives and have the potential to move up in our rankings once projects come to fruition. In the case of Charleston, for instance, the port offers strong rail connectivity, access to Western European markets and is supported by the development of new manufacturing facilities throughout South Carolina.


2015 PAGI Index Score methodology

Seaport Index 2015



* YTD 2015 TEUs: January through March Source: Individual ports and JLL Research

Select top North American seaports and property market indicators

2014 Volumes

(TEUs)

2014 annual change

YTD 2015 (TEUs)

YTD 2015 TEUs

annual change

Immediate market

size (m.s.f.)

Current vacancy

2014 net absorption

(m.s.f.)

YTD 2015 net

absorption (m.s.f.)

Average asking

rents (NNN)

Terminal operators and comments


5,772,303 5.6% 1,467,551 12.8% 308.5 8.0% 1.2 0.5 $6.46 APM Terminals; Global Terminal; Maher Terminals; New York Container Terminal; Port Newark Container Terminal; Red Hook Container Terminal

Port of Long Beach 6,820,806 1.3% 1,472,688 -3.3% 197.3 4.0% 5.6 0.8 $7.09

Total Terminals International; International Transportation Services (ITS); Long Beach Container Terminal, Inc.; Pacific Maritime Services; SSAT Long Beach LLC; SSA Terminals

Port of Los Angeles 8,340,066 6.0% 1,823,954 -5.0% 132.1 3.3% 4.8 0.7 $7.83

West Basin Container Terminal LLC; TraPac Inc.; Port of Los Angeles; Yusen Terminals Inc.; Seaside Transportation Services LLC; Eagle Marine; APM Terminals; California United Terminals

Port of Savannah 3,346,024 10.3% 910,749 18.5% 34.2 5.6% 2.6 0.1 $3.74 Georgia Ports Authority

Port of Tacoma 2,040,023 7.8% 446,965 -4.9% 107.7 5.7% 2.1 0.4 $5.19

APM Terminals; Husky Terminal & Stevedoring, Inc.; Olympic Container Terminal; Pierce County Terminal; Totem Ocean Trailer Express; Washington United Terminals

Port Metro Vancouver 2,912,928 3.1% 735,219 15.2% 77.6 4.9% 1.5 0.2 $6.83 DP World Vancouver; GCT Canada Limited Partnership; Fraser

Surrey Docks LP; GCT Canada Limited Partnership

Port of Baltimore 778,755 10.5% 190,644 7.6% 95.3 10.4% 0.3 1.1 $4.52 Balterm; Mid-Atlantic Terminal; Ports America; Maryland

International Terminals, Inc.

Port of Houston 1,951,088 -0.1% 525,058 11.5% 48.0 3.7% 1.3 1.3 $4.92 Port of Houston Authority

Port of Charleston 1,944,895 21.5% 476,955 16.4% 20.4 6.8% 0.4 0.0 $4.39 South Carolina State Ports Authority

Port of Virginia 2,393,038 7.6% 342,379 10.3% 35.7 7.7% -0.2 0.3 $4.56 Virginia International Terminals; APM Terminals

Port of Montreal 1,402,393 4.2% 334,294 8.5% 209.7 6.1% -0.3 -0.2 $4.25 Montreal Gateway Terminals Partnership; Termont Montreal

Inc.; Empire Stevedoring Co. Ltd.

Port of Oakland 2,394,069 2.0% 469,440 -17.4% 87.2 7.0% 1.7 0.1 $7.76

Ports America; TraPac Inc.; Seaside Transportation Services; Total Terminals Inc., LLC; SSA Terminals, Inc.; Eagle Marine Services

Port of Jacksonville 936,973 1.1% 216,465 0.9% 69.0 10.6% 1.0 0.0 $3.68

Jetport; Ceres Terminals Inc.; Costal Maritime; Marine Terminal Corp; SSA Marine (SSA Cooper LLC); APM; Global Stevedoring / ICS Logistics; TraPac Marine Terminal

Port of Miami 876,708 -2.7% 240,354 14.0% 102.1 6.5% 1.8 1.4 $7.08 Seaboard Marine; South Florida Container Terminal; Port of

Miami Terminal Operating Company

Port of Seattle 1,387,539 -12.9% 370,474 11.4% 92.2 3.5% 1.6 0.2 $6.17 Eagle Marine Services; SSA Terminals; Total Terminals

International; Port of Seattle; Northland Services


Local seaports



Port vital facts

2015 YTD volume: 1,467,551 TEUs (through March)

2014 volume: 5,772,303 TEUs

Main routes: Kill Van Kull, Newark Bay, Upper New York Bay

Trading partners: China, India, Italy, Germany, Brazil

Cranes/Post-Panamax cranes: 61 | 47

Current channel depth: 37 - 50 feet

Container terminals: 6 | APM, Global, Maher, New York, Newark, Red Hook

Post-Panamax ready: Yes

Class I Rail Operators: CSX, Norfolk Southern, Canadian Pacific

Capital investments • Construction on raising the Bayonne Bridge’s roadway is well

under way, and is expected to complete in the second half of 2016. The massive undertaking is the linchpin to preparing the Port of New York/New Jersey for today’s modern vessels, which cannot pass under the bridge as it stands today.

• New York/New Jersey has received a wave of new government funding to further build out the port’s infrastructure. A $14.8 million Transportation Investment Generating Economic Recovery (TIGER) grant from the U.S. Department of Transportation will be used to create jobs and expand facilities at the port.

• While hundreds of millions of dollars have already been spent by terminal operators and governments alike, further investment in port efficiency is still needed. GTC Terminals announced its plans to implement a trucker appointment system to reduce traffic and relieve long wait times, for instance.

Market conditions • The area directly surrounding the Port of New York/New Jersey

continues to be one of the most vital industrial submarkets in New Jersey, and accounts for the majority of all leasing activity in the state.

• Rental rates for Class A space near the port have reached all time highs as new construction drives asking rental rate growth throughout the region.

Development • Construction activity near the port has surged over the past 24

months as developers try to meet the demand for modern Class A warehouse space.

• 2015 will be dominated by speculative development as several new developers enter the market and rapidly break ground on a number of mid-sized blocks of space.

• Some recently completed speculative projects have remained vacant longer than anticipated, however. The rate at which additional development is added will need to be monitored in the quarters ahead.

Summary

TEUs versus port-market occupancy

Port area market score

Terminal operating score

119.0 Info on our scoring methodology: www.us.jll.com/PAGI

90.5

89.0%

91.0%

93.0%

95.0%

0

2,000,000

4,000,000

6,000,000

8,000,000

2008 2009 2010 2011 2012 2013 2014 2015YTD

TEUs TEUs Port-market occupancy

129.5 Seaport property clock

Land

lord l

ever

age Tenant leverage

Peaking market

Falling market

Rising market

Bottoming market

Oakland, Tacoma

Charleston, Montreal, Savannah, Virginia

New York / New Jersey

Baltimore

Jacksonville

Houston, Miami, Los Angeles, Seattle

Long Beach, Vancouver



2014 volumes (TEUs)▼

2014 Annual change 2015 YTD TEUs (as of March 2015)

Immediate market size

Current vacancy Total availability

5.8 m 5.6% 1.5 m 308.5 m.s.f. 8.0% 11.4%

2014 Net absorption

YTD 2015 net absorption

Absorption as % of stock

Under Construction

Average asking rents (NNN)

Port rank

1.2 m.s.f. 0.5 m.s.f. 0.2% 1.6 m.s.f. $6.46 1st

Bayonne Bridge

Kill Van Kull

Port Newark Container Terminal

APM Terminal

New York Container Terminal

Global Marine Terminal

Newark Liberty International Airport

Maher Terminal

N

Red Hook Container Terminal

Port of Long Beach


Port vital facts


2014 volume: 6,820,806 TEUs

Main routes: San Pedro Bay

Trading partners: China, South Korea, Japan

Cranes/Post-Panamax cranes: 66 Post-Panamax cranes

Current channel depth: 76 feet (main channel)

Berths: 80

Container terminals: 6


Class I Rail Operators: UP, BNSF

Capital investments • Long Beach’s $4.5 billion in capital investment over the next 10

years includes the redevelopment of existing terminals, building new wharfs, rail line improvements and the replacement of the General Desmond Bridge (GDB).

• The City of Long Beach Harbor Department allocated $579 million in the fiscal year of 2015 for capital outlay. Of note is increased spending on the GDB and lower allocations on the Middle Harbor project.

• Long Beach will spend over $252 million on the GDB during the FY 2015. Construction is well under way, with an anticipated 2018 completion date. The new bridge will allow passage of the world’s largest, most efficient cargo vessels.

• The port will invest over $142 million in the Middle Harbor Redevelopment project in FY 2015. Construction is nearing completion on what will be the greenest major container terminal in North America.

Market conditions • The immediate industrial market continues to tighten. Quarter-

over-quarter, the vacancy rate was down 30 basis points and availability dropped by 70 basis points.

• Total average asking rents increased to $7.09 per square foot, up $0.61 from this time last year.

• The labor resolution between the ILWU and PMA has restored operations at the port. Also, cargo backlogs have been cleared.

Development • Active construction within a 15-mile radius of the seaport totals

657,455 square feet. These projects are slated to complete by year-end 2015.

• Two million square feet of proposed development will break ground this year. A two-building project within a 10 mile-radius of the port, known as ‘The Brickyard’ will total +/-1.0 million square feet. It has a scheduled completion date of Fall 2016.

• Most projects are being constructed on a speculative basis and are over 100,000 square feet each.

Summary





95.0

92.0%93.0%94.0%95.0%96.0%97.0%98.0%

0

2,000,000

4,000,000

6,000,000

8,000,000

2008 2009 2010 2011 2012 2013 2014 2015YTD

TEUs Port-market occupancy


Land

lord l

ever

age Tenant leverage

Peaking market

Falling market

Rising market

Bottoming market

Oakland, Tacoma



Baltimore

Jacksonville

108.2 Houston, Miami,

Los Angeles, Seattle


TEUs

Port of Long Beach






6.8 m 1.3% 1.5 m 197.3 m.s.f. 4.0% 6.1%

2014 Net absorption



Under Construction


Port rank

5.6 m.s.f. 0.8 m.s.f. 0.4% 0.7 m.s.f. $7.09 2nd

N N

Pier S Container Terminal Development

Middle Harbor Redevelopment

Gerald Desmond Bridge

Pier G Improvements

Anaheim/Santa Fe Intersection Improvement

SSA / Pier A (MSC/ZIM)

TTI / Pier T (Hanjin)

PCT / Pier J (COSCO)

ITS / Pier G (K Line)

SSA / Pier C (Matson)

LBCT / Pier F (OOCL)

On-Dock Rail Support Facility Development

Port of Los Angeles


Port vital facts


2014 volume: 8,340,066 TEUs

Main routes: San Pedro Bay

Trading partners: China/Hong Kong, Japan, South Korea


Current channel depth: 53 feet (main channel)

Berths: 57 (30 from the container terminals)



Class I Rail Operators: UP, BNSF

Capital investments • The port is in the middle of a five-year $1.2 billion capital

investment program intended to help maintain its position as the busiest containerized cargo seaport in North America.

• Construction work continues to enhance the TraPac terminal: This $274 million project will extend the terminal’s wharves, deepen water depths at berths 144-147, create a new on-dock rail facility and include automated facilities.

• China Shipping’s terminal expansion, which nearly doubles its size to 142 acres, is now complete. The South Wilmington Grade Separation Bridge, a $84 million project that improves the flow of goods and reduces truck traffic times to and from the port, also came on line.

• Funding continues for other major roadway improvement projects near the port complex. These projects, representing over $100 million in infrastructure investment, will eliminate bottlenecks and separate car and truck traffic.

• Additional projects include increasing terminal capacity and efficiency by making terminals automated, increasing access to the onshore electrical grid for docking container ships, as well as creating more on-dock and near-dock rail facilities.

Market conditions • The port-immediate industrial market continues to tighten and

remains very landlord-favorable. • The vacancy rate is at a cyclical low, and this, in turn, has led to

rent and sales price increases. Development • A total of 657,455 square feet is under construction within a 15-

mile radius of the port. • Roughly 2.0 million square feet of primarily speculative

development will break ground this year. • High land prices and a lack of suitable sites is constraining new

development. Tenant demand remains high, and redevelopment of older inventory is expected in the quarters ahead.

Summary





103.5

88.0%

92.0%

96.0%

100.0%

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

2008 2009 2010 2011 2012 2013 2014 2015YTD



Land

lord l

ever

age Tenant leverage

Peaking market

Falling market

Rising market

Bottoming market

Oakland, Tacoma



Baltimore

Jacksonville



TEUs

Port of Los Angeles






8.3 m 6.0% 1.8 m 132.1 m.s.f. 3.3% 5.6%

2014 Net absorption



Under Construction


Port rank

4.8 m.s.f. 0.7 m.s.f. 0.5% 0.7 m.s.f. $7.83 3rd

N N

Container Terminal Redevelopment

Pier A Replacement Yard

TICTF Expansion (Rail Upgrades)

Pier 400 ICTF Expansion (Rail Upgrades)

Main Line Rail Improvements

California United Container Terminal

APM Terminals Eagle Marine Services Container Terminal

Evergreen Container Terminal

Yusen Container Terminal

Yang Ming Container Terminal

TraPac Container Terminal

China Shipping Terminal Expansion

Port of Savannah


Port vital facts

2015 YTD volume: 910,749 TEUs (through March)

2014 volume: 3,346,024 TEUs

Main routes: Savannah River

Trading partners: NE Asia, Mediterranean, SE Asia, N Europe


Current channel depth: 42 feet (at MLW)

Berths: 18

Container terminals: 2 | Garden City & Ocean

Post-Panamax ready: No (2018 is the estimate)

Class I Rail Operators: CSX, Norfolk Southern

Capital investments • After much time spent in state and federal legislation for funding,

the Savannah Harbor Expansion Project (SHEP) is now nearing the construction phase: Dredging the harbor to 47 feet deep and expanding it to 49 feet wide, to allow passage of larger cargo vessels.

• The Georgia Port Authority (GPA) recently approved $141.8 million for capital improvements, including infrastructure for cranes and more rail capacity. Other funds will support property development to modernize outdated equipment and facilities.

Market conditions • Savannah is the fourth busiest container port in the country,

including the second busiest container exporter in the United States, at 13.3 million tons.

• Year-to-date container volume is up nearly 13.0 percent. Ro-Ro and break bulk traffic is also up, GPA expects continual growth in the future, especially as the population in the Southeast region grows and with SHEP under way in response to the Panama Canal expansion.

• Demand for warehouse and distribution space is increasing, with corresponding vacancy rates dropping down to 5.6 percent, a 40.0 percent decrease year-over-year.

Development • Savannah is a quickly evolving transshipment corridor thanks to

increasing TEU volume, and this is prompting more industrial real estate development. Nearly 20.0 percent of the market's stock was built from 2008-2014.

• Over 500,000 square feet in new industrial product was built in 2014. This year is off to a steady start, with roughly 83,000 square feet delivered, and another 335,000 square feet under way.

• Another 14.7 million is proposed; one project of which is OA Logistics’ e-commerce fulfillment center, totaling 1.1 million square feet. OA is set to break ground this year, and the new facility will be in addition to their existing 679,000-square-foot distribution center.

Summary





70.0

60.0%

70.0%

80.0%

90.0%

100.0%

0

1,000,000

2,000,000

3,000,000

4,000,000

2008 2009 2010 2011 2012 2013 2014 2015YTD



Land

lord l

ever

age Tenant leverage

Peaking market

Falling market

Rising market

Bottoming market

Oakland, Tacoma



Baltimore

Jacksonville



Port of Savannah






3.3 m 10.3% 0.9 m 34.2 m.s.f. 5.6% 7.9%

2014 Net absorption



Under Construction


Port rank

2.6 m.s.f. 0.1 m.s.f. 0.3% 0.3 m.s.f. $3.74 4th

Savannah River

Ocean Terminal

N Argyle Island Turning Basin

Mason Intermodal Container Transfer Facility

International Paper company

Talmadge Memorial Bridge - 185’ MHW air draft

Savannah/Hilton Head International Airport

Garden City Terminal

Port of Tacoma


Port vital facts


2014 volume: 2,040,023 TEUs

Main routes: Puget Sound

Trading partners: Asia, South America, North America, Europe



Container terminals: 6 | APM, Husky, Olympic Container, Evergreen, TOTE, WUT


Class I Rail Operators: BNSF, UPRR

Capital investments • In late 2014, the Ports of Seattle and Tacoma announced they

will form an alliance to collectively manage all marine cargo terminals. By pooling efforts, the hope is to attract additional TEU volume and grow jobs.

• The Port of Tacoma completed a project to extend the berth at their Washington United Terminals (WUT) by 600 feet to support the addition of two new Super-post-Panamax cranes. This brings the berth’s crane count to six.

• The port completed the Tideflats Area Transportation Study to identify and prioritize future transportation needs for the growth of freight-related traffic in the Tacoma Tideflats area.

• The port is developing a public access plan to identify specific needs and opportunities to provide the public with access to the shoreline. Implementation of the plan is ongoing.

Market conditions • The Port of Tacoma has a notable stock of industrial facilities in

the immediate area, but most of the warehouse/distribution facilities in the greater market are located a few miles away in Sumner and the Kent Valley.

• The industrial vacancy in the immediate vicinity of the port is 5.7 percent. Regionally, port-driven areas such as Sumner, Puyallup and the Kent Valley have the bulk of today’s tenant activity and new construction.

• Rents have been increasing for the past 24 months and are expected to continue to rise through 2016.

• Logistics, aerospace and consumer goods companies are among the market’s most active industries.

Development • Port of Tacoma is the primary land owner in the area. • Currently, of the nine major warehouse/distribution and

manufacturing projects under construction in the Puget Sound area, eight of them, totaling 3.5 million square feet, are located within 15 miles of the Port of Tacoma. The vast majority of which are in Pierce County, where the port is located.

Summary





73.5

86.0%

88.0%

90.0%

92.0%

94.0%

96.0%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2008 2009 2010 2011 2012 2013 2014 2015YTD



Land

lord l

ever

age Tenant leverage

Peaking market

Falling market

Rising market

Bottoming market

Oakland, Tacoma



Baltimore

Jacksonville



Port of Tacoma


APM Terminal

Downtown Tacoma

Commencement Bay

Evergreen Terminal

South Intermodal Yard

Tacoma Rail Yard

BNSF Tacoma Rail Yard

Interstate 5

Evergreen Intermodal Rail Yard

Washington United Terminal

Hyundai Intermodal Rail Yard

North Intermodal Rail Yard

Husky & Stevedoring Terminal

Olympic Container Terminal

TOTE Terminal

UPRR Fife Rail Yard

N





2.0 m 7.8% 0.4 m 107.7 m.s.f. 5.7% 7.7%

2014 Net absorption



Under Construction


Port rank

2.1 m.s.f. 0.4 m.s.f. 0.7% 3.5 m.s.f. $5.19 5th

Port Metro Vancouver


Port vital facts


2014 volume: 2,912,928 TEUs

Main routes: Burrard Inlet, Roberts Bank, Fraser River

Trading partners: China, Hong Kong, Japan, Korea, Singapore, Taiwan, Indonesia, Brazil, India, United States


Current channel depth: 65+ feet

Container terminals: Centerm, GCT Deltaport, Fraser Surrey Docks, GCT Vanterm


Class I Rail Operators: CN Rail (CN), Canadian Pacific Railway (CP) and Burlington Northern Sana Fe (BNSF)

Capital investments • Port Metro Vancouver (PMV) is Canada’s largest port and trades

over $170 billion in goods each year with more than 160 trading economies.

• The demand for import and export of goods through PMV is increasing each year. It is expected that container traffic through Canada’s west coast ports will more than double in the next 15 years.

• PMV has proposed an expansion at Roberts Bank in Delta, B.C. known as the Roberts Bank Terminal 2 project; this new three-berth container terminal will increase the port’s annual container capacity by 2.4 million TEUs.

• PMV’s Deltaport Terminal, Road and Rail Improvement Project will construct an overpass on the Roberts Bank causeway, reconfigure and add additional rail tracks, as well as make road improvements on Deltaport Way.

• The completion of a $1.3 billion project known as the South Fraser Perimeter Road (SFPR) in 2014 has facilitated the movement of goods and services between major industrial nodes throughout Metro Vancouver.

Market conditions • Tenants are actively seeking the next generation of distribution

facilities. This flight-to-quality includes record high ceiling heights, extra large maneuvering areas, ample trailer parking, efficient column spacing and higher loading door counts.

• Large bay deals (100,000 square feet and greater) dominated in 2014 with 13 transactions in all; the most recorded in Metro Vancouver over the last five years.

Development • By the end of 2014, a speculative development known as

Boundary Bay Industrial Park in Delta was fully leased (440,000 square feet). Phase 2 is under construction (430,000 square feet) with completion set for summer 2015.

• Active construction within a 15-mile radius of PMV totals 1.2 million square feet.

• The appeal of excessive speculative development in Delta has been driven by proximity to the port, the U.S. border and the unveiling of the South Fraser Perimeter Road.

Summary

TEUs versus port-market occupancy*

90.0%

92.0%

94.0%

96.0%

98.0%

100.0%

0

1,000,000

2,000,000

3,000,000

4,000,000

2008 2009 2010 2011 2012 2013 2014 2015YTD


* Includes industrial facilities below 50,000 s.f.




70.0 77.2


Land

lord l

ever

age Tenant leverage

Peaking market

Falling market

Rising market

Bottoming market

Oakland, Tacoma



Baltimore

Jacksonville



TEUs

Port Metro Vancouver


2014 Volumes (TEUs)▼




2.9 m 3.1% 0.7 m 77.6 m.s.f. 4.9% 5.5%

2014 Net absorption



Under Construction


Port rank

1.5 m.s.f. 0.2 m.s.f. 0.2% 1.2 m.s.f. $6.83 6th

Fraser Surrey Docks - Multi-purpose marine

terminal

Deltaport -

Container terminal

Vanterm - Container terminal Centerm -

Container terminal

Port of Baltimore


Port vital facts


2014 volume: 778,755 TEUs

Main routes: Chesapeake Bay

Trading partners: China, Netherlands, Japan, Brazil, South Korea, Canada



Berths: 29

Container terminals: 2 | Seagirt, Dundalk



Capital investments • Ports America Chesapeake has invested $105 million in

improvements, including a new 50-foot berth and four post-Panamax cranes at Seagirt Marine Terminal.

• The port continued to struggle to integrate operations into CSX’s National Gateway double-stack network. In 2012, an intermodal site had been chosen in Southwest Baltimore, but (after extended negotiations between CSX, the state of Maryland and Baltimore City) plans were dropped amidst objections from the neighboring community.

• Efforts for bringing double-stack capacity to the Port of Baltimore, which is constrained by CSX’s Howard Street Tunnel, have shifted to introducing a freight component to the replacement of the 140-year-old B&P Tunnel.

Market conditions • Amazon’s expansion into Baltimore City with nearly 1.4 million

square feet of net new occupancy helped to drive absorption and bring occupancy for the port-market to 89.6 percent.

• Following the increase of toll rates for crossing the Baltimore Harbor, the port-market gained increased interest from tenants in the Baltimore/Washington Corridor, including B&E Storage. The paper distributor took down 294,000 square in Port Breeze Business Center at 2500 Broening Highway.

Development • Development activity is set to increase in the port-market with

several projects expected to break ground in the coming year, including the redevelopment of the former Sun Products manufacturing plant, which was recently purchased by Chesapeake Real Estate Group and USAA. Initial plans call for up to 500,000 square feet of new space, along with 500,000 square feet of existing warehouse space.

• Sparrows Point Terminal, one of the largest privately owned logistics and manufacturing multimodal sites in North America, is undergoing redevelopment. The 3,100-acre, former steel manufacturing facility features a deep-water port, connections to two Class I railroads and immediate access to I-695.

Summary





58.0

88.0%

88.5%

89.0%

89.5%

90.0%

0

200,000

400,000

600,000

800,000

1,000,000

2008 2009 2010 2011 2012 2013 2014 2015YTD



Land

lord l

ever

age Tenant leverage

Peaking market

Falling market

Rising market

Bottoming market

Oakland, Tacoma



Baltimore

Jacksonville



TEUs

Port of Baltimore






0.8 m 10.5% 0.2 m 95.3 m.s.f. 10.4% 15.8%

2014 Net absorption



Under Construction


Port rank

0.3 m.s.f. 1.1 m.s.f. 1.1% 0.7 m.s.f. $4.52 7th

N

Fairfield Marine Terminal

Dundalk Marine Terminal

Seagirt Marine Terminal

Rukert Marine Terminal

CSX Marine Terminal

Locust Point

Port of Houston


Port vital facts


2014 volume: 1,951,088 TEUs

Main routes: Gulf of Mexico

Trading partners: Mexico, Venezuela, Saudi Arabia, Germany, Brazil, China, Belgium, Algeria and Netherlands


Current channel depth: 40 feet

Berths: 30

Container terminals: 2 | Barbours Cut and Bayport

Post-Panamax ready: No

Class I Rail Operators: Union Pacific, BNSF, Kansas City Southern

Capital investments • The Port of Houston Authority expects to commit $275 million for

various capital projects. Approximately $184 million will be allocated to container terminals for ongoing development of Bayport and for modernization at Barbours Cut; another $35 million will be put toward improvements at the general cargo and bulk terminals in the Turning Basin area.

• The remaining 2015 capital budget funds will be used for railroad improvements, channel development, port security, building renovations and information technology.

Market conditions • Goods exported from Texas, many of which travel through the

Port of Houston, reached a record $289 billion in 2014. The three biggest sectors were petroleum and coal products ($59.1 billion), computer and electronics products ($46.6 billion) and chemicals ($46.1 billion), according to the Department of Commerce’s International Trade Administration.

• The Houston area is expected to see a wave of new exports in the near future. With the Houston Ship Channel and southeastern Texas already seeing record traffic – thanks to the ongoing shale boom and the upcoming manufacturing surge – condensate exports and the growing debate over ending the crude export ban may lead to more tankers entering the port.

Development • The Port Authority plans to undertake significant infrastructure

improvements in the next few years to ensure the Port of Houston is able to accommodate Post-Panamax vessels.

• Regional population growth and increased traffic through an expanded Panama Canal may result in higher cargo volumes for Houston—the ability to accommodate larger vessels will enhance the port’s competitiveness.

Summary





56.0

84.0%

88.0%

92.0%

96.0%

100.0%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2008 2009 2010 2011 2012 2013 2014 2015YTD



Land

lord l

ever

age Tenant leverage

Peaking market

Falling market

Rising market

Bottoming market

Oakland, Tacoma



Baltimore

Jacksonville



Port of Houston






2.0 m -0.1% 0.5 m 48.0 m.s.f. 3.7% 4.9%

2014 Net absorption



Under Construction


Port rank

1.3 m.s.f. 1.3 m.s.f. 2.7% 1.0 m.s.f. $4.92 8th

Barbour’s Cut Terminal

Union Pacific Railroad

Care Terminal Bulk Materials Handling Plant

Woodhouse Terminal

Turning Basin Terminal (and

Executive Bldg.)

Bayport Terminal N

Port of Charleston


Port vital facts


2014 volume: 1,944,895 TEUs

Main routes: Cooper & Wando Rivers via Charleston Harbor

Trading partners: N Europe, NE Asia, Middle East, South America, Indian Subcontinent and Mediterranean



Container terminals: 2 | Wando Welch, North Charleston



Capital investments • TEU cargo volumes increased by 21.0 percent in 2014. To keep

up with this growth, the Port of Charleston is investing heavily in infrastructure improvement projects.

• A new container terminal will be built at the former Charleston Navy Base. More than $2.2 million was approved for preliminary work, and the project’s first phase will likely finish by 2019.

• The Post-45 Harbor Deepening project proposes to dredge Charleston’s channel from 45 feet to as much as 52 feet to accommodate larger vessels. If executed, the project has an anticipated 2019 completion date, and will make Charleston even more competitive with eastern seaboard ports.

Market conditions • Gradual rent growth and tightening market fundamentals, fueled

by significant leasing activity over the past several quarters, have further propelled Charleston as a landlord-favorable market. The port’s ability to handle increased container traffic and attract new occupiers, like Volvo Car Corporation, is a testament to Charleston’s evolving industrial market strength.

Development • Through aggressive economic development efforts and major

capital investments from global firms like BMW, Michelin, Bridgestone and Northern Tool, South Carolina’s freight base has expanded exponentially in the past few years.

• In one of the biggest wins for the state in 2015, Volvo announced that it will build its first North American manufacturing plant near Ridgeville along Interstate 26 in Berkeley County. Accessibility to international markets via seaport proximity was critical to the automotive manufacturer.

• Volvo’s new plant comes with an incentive package of nearly $204 million and the company will invest nearly $500 million and create over 2,000 jobs over the next decade. The plant will build close to 100,000 vehicles/year initially.

• Earlier this year, Daimler AG announced it will build a campus in North Charleston to manufacture its popular Sprinter vans.

Summary





84.0

80.0%

85.0%

90.0%

95.0%

100.0%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2008 2009 2010 2011 2012 2013 2014 2015YTD



Land

lord l

ever

age Tenant leverage

Peaking market

Falling market

Rising market

Bottoming market

Oakland, Tacoma



Baltimore

Jacksonville



Port of Charleston


N

James B. Edwards Bridge, air draft 155 feet

Arthur Ravenel Jr. Bridge, air draft 186 feet Columbus Street Terminal

Veterans Terminal

Charleston Air Force Base North Charleston Terminal

Union Pier Terminal

Wando Welch Terminal

Future container terminal

CSX & Norfolk Southern intermodal rail yard





1.9 m 21.5% 0.5 m 20.4 m.s.f. 6.8% 11.3%

2014 Net absorption



Under Construction


Port rank

0.4 m.s.f. 0.0 m.s.f. 0.0% 0.0 m.s.f. $4.39 9th

Port of Virginia


Port vital facts


2014 volume: 2,393,038 TEUs

Main routes: James River, Chesapeake Bay, Atlantic Ocean

Trading partners: Northern Europe, Northeast Asia, South America, Mediterranean

Cranes/Post-Panamax cranes:

30 | 27

Current channel depth:

50 feet (at MLW), authorized to 55 feet

Berths: 7

Container terminals: 4 | NIT, NNMT, APMT, PMT



Capital investments • The proposed $1.3 billion Craney Island expansion will boost

cargo handling capabilities to 2.5 million TEUs and create an additional terminal at the Port of Virginia by 2025.

• The Midtown Tunnel expansion and MLK Highway extension are expected to open in December of 2016 and alleviate congestion between Portsmouth Marine Terminal and Norfolk International Terminal.

• Rail underpass/grade separations at Hampton Boulevard and Freeman Avenue will be finished this year and eliminate the need to interrupt vehicular traffic due to railway movement to and from the port terminals.

• Both CSX’s National Gateway and Norfolk Sothern's Heartland Corridor have completed over $1 billion in rail upgrades, reducing bottle necks and adding double-stack capabilities.

Market conditions • Only one high-bay warehouse over 200,000 square feet is

available (2600 International Parkway). Large users are gravitating toward build-to-suits due to limited space options.

• Developers remain focused on land acquisitions, but are still cautiously evaluating speculative product despite Class A’s availability rate falling to 3.3 percent in the first quarter.

• Demand from trucking companies seeking cross-dock facilities is increasing. This is leading to build-to-suits and owner-user sales. On-terminal cargo is being pushed to third-party warehouses due to on-dock space constraints.

Development • Friant and Associates committed to a 357,000-square-foot build-

to-suit; this is the company’s first East Coast distribution center. • Target commenced on a $50 million expansion to its existing

facility in Suffolk. • FedEx completed a 198,839-sqauare-foot distribution facility

in Hampton.

Summary





73.5

88.0%

89.0%

90.0%

91.0%

92.0%

93.0%

0

600,000

1,200,000

1,800,000

2,400,000

3,000,000

2008 2009 2010 2011 2012 2013 2014 2015YTD



Land

lord l

ever

age Tenant leverage

Peaking market

Falling market

Rising market

Bottoming market

Oakland, Tacoma



Baltimore

Jacksonville



Port of Virginia


Craney Island Expansion

Portsmouth Marine Terminal (PMT)

Newport News Marine Terminal (NNMT)

Virginia International Gateway Terminal (VIG)

Norfolk International Terminal (NIT)

Chesapeake Bay

James River

Norfolk Southern Rail Depot

CSX Downtown rail station

Midtown Tunnel Expansion

N





2.4 m 7.6% 0.3 m 35.7 m.s.f. 7.7% 9.0%

2014 Net absorption



Under Construction


Port rank

-0.2 m.s.f. 0.3 m.s.f. 0.8% 0.2 m.s.f. $4.56 10th


Port vital facts


2014 volume: 1,402,939 TEUs

Main routes: St. Lawrence River

Trading partners: Over 140 countries across the globe



Container terminals: 5 | Cast, Racine (MGT), Maisonneuve, Viau (Termont), Bickerdike

Post-Panamax ready: No*

Class I Rail Operators: CN Rail (CN), Canadian Pacific Railway (CP)

Capital investments • Continued growth in container movement, particularly from

developing countries and the need for additional infrastructure to accommodate even larger vessels, has prompted a number of improvement projects in and around the Port of Montreal.

• Upon completion, the new Viau (Termont) container terminal will be Post-Panamax ready. Estimated at $67 million, the project will be carried out through 2015-2018 and will increase the port’s handling capacity from 600,000 TEUs to more than 2.1 million TEUs. The Viau container terminal will be operated by Termont Montreal Inc., which has been operating the Maisonneuve terminal since 1987.

• The Contrecoeur container terminal will be executed in phases over a 10-year period. The site will serve as an extension to the Port of Montreal and will be able to accommodate a container terminal with a capacity of 3.5 million TEUs when fully deployed. Phase I is scheduled to be completed by 2021 with an annual capacity of 1.1 million TEUs.

Market conditions • Strong demand for industrial space in close proximity to the Port

of Montreal has kept vacancy low while absorption and asking rental rates are generally higher compared to the Greater Montreal industrial market. This trend is expected to continue as the port expands its infrastructure and capabilities over the next 10 years.

Development • A lack of available land on the Island of Montreal is restraining

new industrial development in proximity to the Port of Montreal. • Demand for modern industrial buildings with higher ceiling

heights is forcing developers to look at off-island options. As a result, submarkets such as the North-Shore, South-Shore and Vaudreuil-Dorion are seeing a rise in new industrial projects.

• Current buildings under construction within a 15-mile radius of the Port of Montreal total 503,480 square feet.

Summary


*Can accommodate Post-Panamax vessels that are ±75 percent loaded, however

89.0%90.0%91.0%92.0%93.0%94.0%95.0%

0

400,000

800,000

1,200,000

1,600,000

2008 2009 2010 2011 2012 2013 2014 2015YTD

TEUs TEUs Port-market occupancy*

* Includes industrial facilities below 50,000 s.f.




29.0 59.4


Land

lord l

ever

age Tenant leverage

Peaking market

Falling market

Rising market

Bottoming market

Oakland, Tacoma



Baltimore

Jacksonville



Port of Montreal

Port of Montreal


2014 Volumes (TEUs)▼




1.4 m 4.2% 0.3 m 209.7 m.s.f. 6.1% 7.3%

2014 Net absorption



Under Construction


Port rank

-0.3 m.s.f. -0.2 m.s.f. 0.0% 0.5 m.s.f. $4.25 11th

BickerdikeTerminal

LaurierTerminal

Hochelaga Terminal

Racine (MGTP) Terminal

Maisonneuve (Termont) Terminal

Cast (MGTP) Terminal

N

Port of Oakland


Port vital facts


2014 volume: 2,394,069 TEUs

Main routes: Asia / Pacific

Trading partners: China, Taiwan, Japan



Berths: 18 (deep-water)

Container terminals: 8 | Ports America, STS/Evergreen, SSAT


Class I Rail Operators: BNSF, Union Pacific

Capital investments • Work continues on the first phase of the Oakland Global Trade

and Logistics Center, including construction of a new bulk-marine terminal and grading for a new port rail yard to serve the anticipated growth in new and existing port business.

• The port is working on adding electronic monitoring to measure wait times at gates for trucks, providing information to drivers to help them avoid peak times.

• Phase II of the master plan includes an expanded rail yard, a new intermodal rail terminal and trade and logistics facilities. Significant public investment is still required before Phase II can commence and will be contingent on successful completion of Phase I in 2017 and expected increased volume through the port.

Market conditions • Despite slowdowns during January and February due to a labor

dispute, trade volume during March was up slightly from the year before. The port has instituted Saturday operations and off-terminal cargo areas to cope with the cargo backlog. While slowdowns created inconveniences for local businesses, it has not appeared to have any discernable effect on real estate.

• Occupancy within a 15-mile radius of the port ticked up to 92.9 percent by year-end 2014, the highest level in five years. Available space continued to decline, leaving few spaces for tenants to choose from within the port’s immediate market area.

• With new buildable industrial land at a minimum, landlords continue to take advantage of current market conditions and are driving asking rental rates above pre-recession levels.

Development • KTR is finalizing construction on Phase II of Pinole Point

Business Park in Richmond, totaling 474,000 square feet. The dually leased project will be delivered in the second quarter of 2015. McShane Development is building Phase I of a multi-building development in Hayward.

• Leasing activity near the port remains robust with Coaster Company of America signing a new lease for 232,881 square feet at 8350 Pardee Drive and Purcell Murray signing a new lease for 192,680 square feet at 7200-7240 Edgewater Drive.

• Prologis expects to deliver buildings in the Oakland Army Base Redevelopment during the second quarter of 2016.

Summary





58.5

85.0%

87.0%

89.0%

91.0%

93.0%

95.0%

0

600,000

1,200,000

1,800,000

2,400,000

3,000,000

2008 2009 2010 2011 2012 2013 2014 2015YTD



Land

lord l

ever

age Tenant leverage

Peaking market

Falling market

Rising market

Bottoming market

Oakland, Tacoma



Baltimore

Jacksonville



Port of Oakland


Total Terminals International (Hanjin)

Oakland International Container Terminal (SSAT) Global Gateway Central Terminal (APL) Charles P. Howard Terminal (Matson)

BNSF Intermodal Yard

TraPac Terminal

Ben E. Nutter Terminal (STS/Evergreen)

Union Pacific Intermodal Yard

Berths 33-34

Ports America Outer Harbor Terminal

Oakland Army Base Redevelopment





2.4 m 2.0% 0.5 m 87.2 m.s.f. 7.0% 9.5%

2014 Net absorption



Under Construction


Port rank

1.7 m.s.f. 0.1 m.s.f. 0.1% 0.5 m.s.f. $7.76 12th

Oakland Global Trade and Logistics Center

N


Port vital facts 2015 YTD volume: 216,465 TEUs (through March) 2014 volume: 936,973 TEUs

Main routes: 21-mile stretch of the St. Johns River connects to all terminals

Trading partners: Puerto Rico, China, Japan, Finland, Brazil, Saudi Arabia, Venezuela, Netherlands, Vietnam, Turkey



Berths: 13 | Tallyrand-6, Dames Point-4, Blount Island-3 Container terminals: 3 | Tallyrand, Blount Island, Dames Point Post-Panamax ready: No

Class I Rail Operators: CSX, Norfolk Southern, Florida East Coast Railway


78.0%

82.0%

86.0%

90.0%

94.0%

0

200,000

400,000

600,000

800,000

1,000,000

2008 2009 2010 2011 2012 2013 2014 2015YTD



Land

lord l

ever

age Tenant leverage

Peaking market

Falling market

Rising market

Bottoming market

Oakland, Tacoma



Baltimore

Jacksonville






49.0 58.5

Capital investments • The signing of the Water Resources Reform and Development

Act (WRRDA) by President Obama has cleared the way for the $684 million St. Johns River dredging project, which will deepen the river to a depth of 47 feet. Engineering and design work is already under way with construction beginning as soon as early 2016.

• The dredging project is expected to take 18 months and will allow fully loaded New Panamax class vessels to call on JAXPORT.

• The $30 million intermodal container transfer facility at Dames port is currently under construction, and, upon completion, the project will facilitate the direct transfer of containers between vessels and trains. Construction started in May 2014, and is slated for delivery in the second half of 2015.

Market conditions • Industrial product around the port area saw a pickup in activity in

2014, recording just over 1.0 million square feet of positive net absorption, which amounts to just over 1.0 percent of the total industrial stock. This trend of positive net absorption is expected to continue into 2015.

• Container volumes at the port grew by 1.1 percent from the previous fiscal year and concluded 2014 with 936,973 TEUs.

Development • TOTE Inc began construction last February on the world’s first

LNG-powered container ship, which will use JAXPORT as a home port. The new Marlin Class container ship, expected to launch in late 2015, will traverse the Puerto Rico trade route from Jacksonville.

• With the help of $100 million in federal and state funds, JAXPORT has begun upgrades to wharves, on-dock rail and terminal pavement areas.

Summary




N Jacksonville Downtown

Talleyrand Marine Terminal

Naval Station Mayport

Blount Island Marine Terminal

JAXPORT Blount Island and Dames Point Operation

TracPac Container Terminal at Dames Point

Cruise Terminal





0.9 m 1.1% 0.2 m 69.0 m.s.f. 10.6% 16.0%

2014 Net absorption



Under Construction


Port rank

1.0 m.s.f. 0.0 m.s.f. 0.0% 0.1 m.s.f. $3.68 13th

Port of Miami


Port vital facts


2014 volume: 876,708 TEUs

Main routes: Main Ship Channel, Fisherman’s Channel, Government Cut

Trading partners: China, Honduras, Hong Kong, Guatemala, Dominican Republic


Current channel depth:

28 - 42 feet (at MLW). Upon completion: 50 - 52 feet (by 2015)

Container terminals: 3 | Seaboard Marine, South Florida Container, Port of Miami Terminal Operating Company


Class I Rail Operators: Florida East Coast Railways

Capital investments • PortMiami’s ongoing capital expenditure totals over $2.0 billion

and includes dredging, four new cranes, a new tunnel and other enhancements to facilitate the anticipated trade increase when the port becomes Post-Panamax ready.

• As part of these improvements, the $205 million dredging project is currently under way and is expected complete in the second half of this year. This will make PortMiami one of few East Coast seaports able to accommodate 13,000-14,000 TEU vessels —well ahead of an expanded Panama Canal’s debut.

• The PortMiami Access Tunnel (MAT), which completed in 2014, is one mile long and provides access to I-395 via Watson Island, alleviating truck congestions along Biscayne Boulevard. The tunnel averages 16,000 vehicles per day.

• Florida East Coast Railway’s (FECR) reactivated freight rail at the port; the rail system links PortMiami to 70.0 percent of the U.S. population within four days.

Market conditions • Amidst strong employment gains and construction growth,

Miami-Dade’s industrial market dropped to a new cyclical low. • Consumer goods, logistics companies and food & beverage firms

are the most prevalent tenants in the market. • As the residential and retail development pipeline heats up, the

market is seeing more building supply-related firms expand and lease industrial space.

Development • Airport West and Medley are the epicenter of new development

with roughly 1.1 million square feet under construction. Active owner/developers include Flagler Global Logistics, Liberty Property Trust, Income Industrial Trust, Prologis and DCT Industrial Trust. Collectively, this group has delivered over 3.4 million square feet to the market over the previous 24 months, of which 2.3 million is more than 90.0 percent leased.

Summary





54.5

85.0%

87.0%

89.0%

91.0%

93.0%

95.0%

0

200,000

400,000

600,000

800,000

1,000,000

2008 2009 2010 2011 2012 2013 2014 2015YTD



Land

lord l

ever

age Tenant leverage

Peaking market

Falling market

Rising market

Bottoming market

Oakland, Tacoma



Baltimore

Jacksonville



TEUs

Port of Miami


N

395

Downtown Miami

Rail Bascule Bridge Rehab

Seaboard Marine Terminal

Deep Dredge

POMTOC Terminal

SFTC Terminal

Underground Tunnel Construction

Cruise Terminals





0.9 m -2.7% 0.2 m 102.1 m.s.f. 6.5% 9.6%

2014 Net absorption



Under Construction


Port rank

1.8 m.s.f. 1.4 m.s.f. 1.4% 0.6 m.s.f. $7.08 14th

N

FECR Intermodal Yard

Port of Seattle


Port vital facts


2014 volume: 1,387,539 TEUs

Main routes: Puget Sound

Trading partners: Asia, South America, North America, Europe


Current channel depth: 50 feet

Berths: 11



Class I Rail Operators: BNSF, UPRR

Capital investments • In late 2014, the Ports of Seattle and Tacoma announced they

will form an alliance to collectively manage all marine cargo terminals. By pooling efforts, the hope is to attract additional TEU volume and grow jobs.

• The largest metro area project is the Alaskan Way Viaduct and Seawall Replacement Program, which will enhance freight mobility, port facility access and regional mobility. The port has invested $300 million toward this regional project.

Market conditions • The industrial vacancy in the immediate vicinity of the port is 3.5

percent. Regionally, port-driven areas such as the Kent Valley are benefiting, with declining vacancy and increasing tenant demand.

• Leasing volumes have remained steady, though, limited supply is hindering market demand. New construction groundbreakings continue and proposed projects are being announced.

• The immediate area around the Port of Seattle is extremely space-constrained. As a result, the vast majority of new development is farther south in the Kent Valley and near the Port of Tacoma.

• Logistics, aerospace and consumer goods companies are among the market’s most active industries.

Development • Port of Seattle / City of Seattle are the port’s main land owners,

which encompasses 1,543 acres of waterfront land and nearby properties.

• The Port’s Century Agenda seeks to grow 100,000 port-related jobs in the region over the next 25 years, by strengthening access to global markets and supply chains. To that end, the port has been engaging regional stakeholders to try to meet the goals and needs of manufacturing, warehouse and distribution centers in the area; the port’s focus is on transportation, infrastructure and business incentives.

Summary





41.0

90.0%

92.0%

94.0%

96.0%

98.0%

100.0%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2008 2009 2010 2011 2012 2013 2014 2015YTD



Land

lord l

ever

age Tenant leverage

Peaking market

Falling market

Rising market

Bottoming market

Oakland, Tacoma



Baltimore

Jacksonville



Port of Seattle






1.4 m -12.9% 0.4 m 92.2 m.s.f. 3.5% 4.8%

2014 Net absorption



Under Construction


Port rank

1.6 m.s.f. 0.2 m.s.f. 0.2% 1.6 m.s.f. $6.17 15th

BNSF Intermodal Yard

Terminal 30 Terminal 5

Terminal 18

Terminal 30

Terminal 46

Interstate 5

Downtown Seattle Elliott Bay

Puget Sound

N


Mark Levy Managing Director Head of Port, Airport and Global Infrastructure Services +1 703 891 8404 [email protected]

Craig S. Meyer, SIOR International Director Americas Brokerage Leader Logistics and Industrial Services +1 424 294 3460 [email protected] License #: 00586344

Aaron L. Ahlburn Senior Vice President Director of Research Americas Industrial and Retail +1 424 294 3437 [email protected]

Dain Fedora Research Manager Americas Industrial +1 424 294 3444 [email protected]

Port, Airport & Global Infrastructure report authors

Ignatius Armenia Research Analyst +1 201 528 4419 [email protected]

Gillam Campbell Research Analyst +1 404 995 6327 [email protected]

Elliot Williams Research Manager +1 916 491 4322 [email protected]

Thomas Forr Research Manager +1 416 304 6047 [email protected] Chris Fox Research Analyst +1 425 974 4013 [email protected] Drew Gilligan Research Analyst +1 813 387 1323 [email protected]

Victoriya Gouchtchina Associate +1 514 667 5670 [email protected] Jonathan Jassebi Associate +1 604 998 6141 [email protected] Patrick Latimer Research Analyst +1 443 451 2609 [email protected]

Margaret Martin Research Analyst +1 713 888 4079 [email protected] Teresa Petrosyan Senior Research Analyst +1 213 239 6224 [email protected] Mehtab Randhawa Research Manager +1 919 424 8459 [email protected] m

Geoffrey Thomas Research Analyst +1 804 200 6527 [email protected]

Contributors

mailto:[email protected]



















All West Coast ports have channels deep enough to accommodate today’s larger, modern vessels. The following eastern seaboard ports are (or will be) able to handle larger containerships when a new Panama Canal opens in 2016: New York/ New Jersey, Baltimore, Virginia and Miami.

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2015-08-01 - PAGI-Seaport- JLL