CATALYSTS FOR COMMERCE

JOHN F. REINHART

CEO & EXECUTIVE DIRECTOR, VIRGINIA PORT AUTHORITY

CATALYSTS FOR COMMERCE

SIX TERMINALS. UNLIMITED POSSIBILITIES.

2

HAMPTON ROADS HARBOR

3

FY 2018

FY 2016

FY 2015

FY 2017

RECORD-SETTINGVOLUMESWe are handling more than 400,000 TEUs more than we did in FY2015 – a 15% increase.

FY 2019

FY 2020

(BUDGETED)

2.00

million

TEUs

2.25

million

TEUs

2.50

million

TEUs

2.75

million

TEUs

3.00

million

TEUs

3.25

million

TEUs

2.54

2.65

2.76

2.82

2.94

3.25

4

FISCAL FORTITUDE

5

RECORD-

SETTING

VOLUMESWe handled 2.94 million TEUs in Fiscal Year 2019

Overall volume up 3.9% over FY 2018

Vessel calls are down 7.9% over FY 2018

Our Richmond Marine Terminal Barge service

moved 33,484 containers in FY 2019

6

POV GATE TURN TIMES

7

TRADITIONAL TURN TIME – DEC 2019

8

Stewards of Tomorrow

POV OSHA LOST WORK DAY RATE

9

TOP COMMODITIES (TEUs)

EXPORT IMPORT

Logs and Lumber Furniture

Soybeans and Products Auto Parts

Paper and Paperboard; Incl Waste Plastic Products

Wood Pulp Toys

Pet and Animal Feeds Paper and Paperboard; Incl Waste

Grocery Products Auto and Truck Tires and Tubes

Field Seeds and Bulbs Fabrics; Incl Raw Cotton

Auto Parts Hardware

Woodenware Sheets, Towels, Blankets

Poultry Metalware

China#1

Imports

Exports

#1

Belgium#7 #2

Indonesia#3

Netherlands#8 #4

Germany#2 #5

Thailand#6

Taiwan#7

India#3 #8

Japan#9

Vietnam#4 #10

Italy#5

Brazil#6

Turkey#9

Spain#10

Top Trading PartnersThe Port of Virginia is unique in that we are a balanced port. In FY18,

47 percent of our cargo went to markets around the world and 53

percent came in as imports.

11

GLOBAL REACH

T H E P O R T O F V I R G I N I A

Direct links to:

• Asia

• Africa

• Caribbean/Central America

• Europe

• India Sub-Continent/Middle East

• Mediterranean

• South America

D I R E C T S E R V I C E T O 8 0 P O R T S

26 weekly shipline services

• Weekly calls by region:

• Africa (1)

• Asia (10)

• Caribbean/Central America (1)

• Europe (6)

• India Sub-Continent/Middle East (2)

• Mediterranean (4)

• South America (2) 12

QUICK ACCESS BY RAIL

13


VIRGINIA INTERNATIONAL GATEWAY

(VIG) RAILYARD

OCTOBER 3, 2019

14

DESCRIBE YOUR WORK DESCRIBE YOUR WORK DESCRIBE YOUR WORK

WE BELIEVE

quick, reliable access to goods leads to a

stronger economy – and a better life – for

our customers, communities, our

commonwealth and our country.

15


More than

45 BUSINESSESannounced they were locating or

expanding their business in Virginia

3,000,000 SQUARE FEETbuilt or under development

created across Virginia

2,801 JOBSMore than

$2.0 BILLIONinvested across Virginia

CATALYSTS FOR COMMERCE: FY 2019

More than

Data as of 7.3.19

16


More than

39 BUSINESSESannounced they were locating or

expanding their business in Virginia

4,888,000 SQUARE FEETbuilt or under development

created across Virginia

3,350 JOBSMore than

$2.0 BILLIONinvested across Virginia

CATALYSTS FOR COMMERCE: CY 2019

More than

17

New FY2016

Existing FY2016

New FY2017

Existing FY2017New FY2018Existing FY2018

New FY2019Existing FY2019

RICHMOND MARINE TERMINAL

HAMPTON ROADS TERMINALS

VIRGINIA INLAND PORT

Data as of 9.30.19

• More than 170 port-related

businesses announcements

• Nearly $4.5 billion invested

• More than 16,000 jobs

created

In the past four years:

18

19

Stewards of Tomorrow®

®

®

®

PORT ECONOMIC IMPACT - FY13 RESULTS

$60.3 BILLION

Source: The Fiscal Year 2013 Virginia Economic Impacts of The Port of Virginia, 2014, Raymond A. Mason School of Business, William & Mary

374,464

$30.5 BILLION

18.0 MILLIONTONS OF CARGO MOVED JOBS IN VIRGINIA

IN SPENDING IN VA GSP

$17.5 billion in Virginia

labor income

$1.4 billion in state and local taxes and fees

20


®

®

®

PORT ECONOMIC IMPACT - FY18 RESULTS

$92.1 BILLION


397,094

$39.3 BILLION

22.1 MILLIONTONS OF CARGO MOVED JOBS IN VIRGINIA

IN SPENDING IN VA GSP

$23.0 billion in Virginia

labor income

$2.1 billion in state and local taxes and fees

21


®

®

®

SPENDING

$60.3 BILLION


IN SPENDING

FY13

$92.1 BILLIONIN SPENDING

10.8%OF VA OUTPUT

PURCHASES

FY18

52.8%INCREASE

22


®

®

®

GROSS STATE PRODUCT

$30.5 BILLIONIN VALUE-ADDED GSP

FY13

$39.3 BILLIONIN VALUE-ADDED GSP

7.5%OF VA GSP

FY18

28.7%INCREASE


23


®

®

®

EMPLOYMENT

FY13

9.5%OF VA RESIDENT

EMPLOYMENT

FY18

397,094JOBS IN VIRGINIA

374,464JOBS IN VIRGINIA

6.0%INCREASE


24


®

®

®

LABOR INCOME

$17.5 BILLIONIN LABOR INCOME

FY13

$23.0 BILLIONIN LABOR INCOME

7.0%OF VA TOTAL LABOR

INCOME

FY18

31.3%INCREASE


25


®

®

®

STATE & LOCAL TAXES AND FEES

$1.4 BILLIONIN STATE & LOCAL REVENUES

FY13

$2.1 BILLION

4.2%OF VA STATE & LOCAL

REVENUES

FY18

46.2%INCREASE

IN STATE & LOCAL REVENUES


26

Ocean Carrier

Consolidation

90% of cargo moving

through The Port of

Virginia is carried by the

three major alliances.

Infrastructure

Larger Vessels require

more on-terminal

resources on land and

deeper and wider

shipping channels.

West Coast

Diversification

Increasing numbers of

businesses are diverting

cargo to the US East

Coast to reduce risks to

supply chains.

Industry Challenge:To remain competitive, ports must be able to move cargo

safely, swiftly, and sustainably inside – and outside – their gates.27

WE HAVE A HISTORY OF WELCOMING BIG SHIPSA 69% increase in size in under five years.

2014: 8,500 TEUs

2015: 9,000 TEUs

2016: 10,500 TEUs

2017 (May): 13,098 TEUs

2017 (July): 13,300 TEUs

2017 (Aug): 14,400 TEUs

2019 (May): 15,300 TEUs

28

THE NEW NORMAL

90% OF CARGO is carried by THREE

ALLIANCE GROUPS using FEWER and

LARGER VESSELS

29

50’ / 55+’

EAST COAST PORT DEPTHSBy 2025, The Port of Virginia will by the only port of the US East Coast with a 55+’ channel depth.

NYNJ

50’/50’

BALTI-

MORE

50’/50’

SC PORT

45’/52’

GA PORT

42’/47’JACKSON-

VILLE

40’/47’

MIAMI

50’/50’

30

NORFOLK HARBOR DEEPENING & WIDENING

31

32

BUILDING THE CAPACITY

FOR GREATNESS

We end one chapter of our infrastructure

improvements and begin a new era of service.32

RENDERING…

VIRGINIA INTERNATIONAL GATEWAY

33

REALITY

JUNE 25, 201934

35

NORFOLK INTERNATIONAL TERMINALS2020:

• 1.2 million annual container capacity at NIT (+46%)

• 26 lane truck gate at NIT North, 16 lanes at NIT South

• Direct connectivity to I-564

• Plan for 2 additional ship-to-shore cranes

RENDERING…

36

Stewards of Tomorrow1/1/2020

REALITY

37

TIMELINE


38


The Port of Virginia is ready to move

Virginia’s Green Economy forward.

39


40


PORTSMOUTH MARINE TERMINAL (PMT)

41


NEWPORT NEWS MARINE TERMINAL (NNMT)

42

2020NIT Phase 1, VIG

Total port capacity:

4.6 MILLION TEUs

Capacity to handle

>40% of volume by rail

43

2030NIT Phase I1 complete


6.0 MILLION TEUs

Capacity to handle

>49% of volume by rail

44

NIT CRY EXPANSIONPORT INFRASTRUCTURE DEVELOPMENT GRANT

45

2065Craney Island Phase I

& II complete

Craney Island capacity

when complete:

5.0 MILLION TEUs


9.6 MILLION TEUs

Capacity to handle

>45% of volume by rail 46

Documents

CATALYSTS FOR COMMERCE