The I-4 Corridor:

A Freight

Perspective

Keith Robbins

District Freight Coordinator, FDOT District One

The I-4 Corridor

Area of Freight Influence

Location Considerations

• Distance– From suppliers to the facility

– From facility to customer base – market area

• Price of land per acre– Development costs

– Tax incentives

• Multi / Inter-Modal connectivity – rail, air, sea, highway

• Highway system access

• Availability of workforce – Training opportunities / schools

Source: 2016 Florida Logistics Report by Cushman & Wakefield

C,entral Florida / Orlando

Strong popula~ion and job growth combined with a dynamic tourism

sector make Cen~ral Rlorida a magnet for economic expansion and

consumer spending. The market has shifted from one ~hat focuses

mainly on local demand to one that is more of a conduit that serves

~he overall region. The lntermodal Logistics Center in Winter Haven,

only enhances the market and could be a catalyst for an additional 8.0

million square feet of new warehouse/distribution space. Looking to

~he future, the Spaceport at Cape Canaveral already provides access

to four modes of transportation (roads, 1rail, sea and space) and is a

major selling point for companies pursuing delivery of space­

orientated products.

Orlando's business climate, superior infrastructure and central location make it an ideal choice for companies wanting to tap into the

potential of a growing region.

MARKET STATISTICS

~~ ~ B

B)...B Population 12-Month Pop. In 300 Miles 1,461,000 Gro\/'1th 2. 7% 18.5M People

IIDmD l mDW DIIll ~

~ Port Facilities

2,600

2,400

2,200

2,000

1,800

1,600

1,400

1,200

Network Linkages

-@k I ::: --1 --- --

Real Estate Market

112.0%

110.0%

8.0%

6.0%

4.0%

2.0%

(1.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016(1)

- Population (000s) - unemployment Rate

~ ~ ~ □DD u 595,400 Unemployment Job Gro\/'1th Retai l Sales

Employed 5. 1% 2.3% $28.2 Billion

FL Industrial Market -

Logistics

Source: 2016 Florida Logistics Report by Cushman & Wakefield

Central Florida/ Orlando

TRADE & TRAFFIC

LOGISTICS STATISTICS

Truclking/Freeways 11-95, Florida Turnpike, US-27, SR-80, SR 70

Daily Milles Traveled on Interstates (June 2016) 36 .1136 .100 mi'les

Rai l Lines Florida East Coast CSX SunRai l

Airports Orlando International Airport, Sanford Int. Aiirport,. Orlando Executive Airport, Orlando/Melbourne lint. Airport

Bulk Cargo (Cargo Weight Tons)

% Change (2014 to 2015)

Port Data* (Total TEU Volume)

% Change (2014 to 2015)

Channel Depth

Total Cranes/Post-Panamax

Major Trading Part!ners

5,000

4,500

4,000

3,500

3,000

2 ,500

2 ,000

1,500

1,000

500

Annuall Bulk Volume & Cruise Passengers

2006 2007 2008 2009 2010 201 1 20 12 2013 2014 20115

- Bulk Tons (000s) - Cruise Passenger (000s)

4 148243

23.4%

3.3%

413' (wit!h plans to potentially deepen to 55')

0/0, 6 1.500 linear feet of berthing and 685 ieet of Ro-Ro berthing_

Bahamas, Denmark, Cayman ls11ands, Saint Maarten, Guyana,. China

Port Canaveral is the second largest cruise port in the U.S. and a major player in bu lk commodities such as petro and salt Big advantage for the port is the 45 minutes from the berth to sh ipping lanes allowing vessels to load/unload qu ickly_

Opened in 2014, the lntermodal L,ogistics Center in Winter Haven is a central ized transportation/distribution hub for Centra l and South Florida_ The 318-acre terminal can process up to 300,000 shipping containers a year. There is 930 acres adjacent for development of up to 8.0 million square feet of warehouse space.

Spaceport at Cape Canaveral! already provides access to fou r modes of transportation (roads, rail, sea and space} and is a major selling point for companies to relocate to Florida to pursue delivery of space-orientated payloads_

FL Industrial Market -

Logistics

Source: 2016 Florida Logistics Report by Cushman & Wakefield

Central Florida / Orlando

WAREHOUSE/DISTRIBUTION MARKET

Much of Cen~ral Florida's economic success has been driven by growtlh in

the distribution market. Large tenants, like Chep USA, Irby and Shaw

Floors, see the market as an idea location tlhat can easily service multip~le

markets tlhroughout the state.

Tlhrough lihe tlhird quarter over 1.9 million square feet of space was

absorlbed and taken off the market

Direct vacancy for the overall market readhed 3.9%, a 2.2 percentage point

reduction from last year. Warehouse/distribution space experienced the bulk

of tightening with nine out of 13 submarkets falling below 4_0%.

Overall asking rates inareased to $5.29 per square foot {PSIF), up 9.5% from

12-months prior.

WAREHOUSE/DISTRIBUTION STATISTICS-Q3 2016

Inventory 81,682,942

Direct Vacancy Rate 39%

Y-O-Y % change (bps) (220)

Direct Asking Rent ($PSIF/NNN) $5-29

Y-0-Y % change 9.5%

YTD Absorption 1,557,263

YTD CompletJions 632,733

Under Construction 1,672,630

$7.00

$6.00

$5.00

$4.00

$3.00

$2.00

$1 .00

Warehouse/Distribution Market

14.0%

12.0%

10.0%

8.11%

6.11%

4.11%

2.11%

$0.00 0.11% 2006 2007 2008 2009 2010 2011 20112 21113 2014 2015 3Q16

- NNN Direct - Direct Vacancy

t ~ t I- 0 (/) E:i ::: tl <( --- --,u Vacancy Rents

w ' Yr t~ 0::

,Q □ DD LL Leasing Construction

FL Industrial Market -

Logistics

Source: 2016 Florida Logistics Report by Cushman & Wakefield

Central Florida / Orlando

INFRAST RUCTURE IMIPROVEMENITS

• Port Canaveral recently completed widening of the channel to 500 feet

and will invest dose to $100 million from 2018 to 2021 in cargo berth

and terminal enhancements including two new post-Panamax cranes.

In addition, a new $1 10 million cruise terminal wil l be finished by 2020_

• Reconstruction on 1,-4 tjhroughout tine region will accommodate

increased traffic flm,vs_ A 21-mile stretch will be rebui'lt, with new

express lanes and reconstructed interchanges. Construction will be

completed in 2021 at a cost of $2.3 billion. This will make it easier for

more triucks to utili~e roads with automobile traffic.

• CSX's Central Rlorida lntermodal Logistics Genter opened in 2014 and

loads containers directly to and from trucks and trains. R!unning at 75%

capacity, it has already spunred economic development that could have

a potentia'I $10 billion economic impact over 1 De.years.

CHALLE NGES FOR GROWTH

• Port Canaveral is limited by land constraints for rail on access to the

regional transportation network. It is hemmed in by sensitive

weUands and government restricted land. To grow as an auto

importer, direct train access at the port is key.

• General lack of available shovel-ready, entitled industrial lland,

especially in tertiary submarkets. The high cost of construction in

infill locations hampers some existing tenant's expansion plans.

• Competition by sector employers in Central Fllorida for employees

remains fierce. Coupled with the tourism industry cannibalizing the

same labor base, upward pressu~e on wages could deter new

market entrants.

2016 MAJOR TRANSACTIONS

St>JLES

Property SF Buyer Price Submarket

CrownPointe (4 properties) 670, 188 Colony Capital $55,650,000 Orlando Central Park

8650 Transport Drive 360,000 MDH Partners $16,254,000 Airport/ Lake Nona

LEASES

Property SF Tenant Type Submarket

201 Gil ls Drive 360,260 United Faci lities Inc. New Lease RegencyfTumpike/Beeline

8650 Transport Drive 191,000 Electro'lux Renewal! Airport/ Lake Nona

14!01 Ocoee Apopka Road 180,000 Quality Custom Distribution Services New Lease Sillver Star/Apopka

Major Freight Players

• Hillsborough County (*I-75 Junction)

– Port Tampa Bay

– CSX

– Transmontaigne

– Kinder Morgan

– Murphy

– Rooms to Go

– Star Distribution Systems

• Polk County

– Amazon

– Saddle Creek Logistics

– Walmart

– R&L Carriers

– CSX

– Publix

– O’Reilly Auto Parts

– Advance Auto Parts

– Southern Wine & Spirits

– Rooms to Go

• Osceola County – (*TPE Junction)

– Disney

– Pepsico

• Orange County (*TPE Junction)

– Theme Parks

– Land Star

• Seminole – (*TPE Junction)

– I-4 Rest Areas

• Volusia (*I-95 Junction)

– No major freight sites

Air Cargo – activities at several airports in the region, but nothing significant enough to draw specific attention for I-4 impact. Key sites of interest include:• St Pete-Clearwater• Tampa International• Lakeland Linder• Orlando International• Orlando-Sanford International• Daytona International

Impact of Road Projects

• Hillsborough County– Operational improvements at junction of I-4 and I-75

• Polk County– CSX RR Bridge in Lakeland

– Interchanges at SR33, SR559, SR557, US27

• Osceola, Orange, Seminole, and Volusia Counties– See following slides on the I-4 Ultimate and Beyond the Ultimate

projects

Bottom Line – projects have a temporary impact to trucking operations, but will provide a better operating environment for freight trucking upon completion.

Project Overview

21 miles from west of Kirkman Road to east of SR 434, Orange & Seminole Counties

Scope:

Reconstruct mainline and interchanges

Addition of 4 Express Lanes

Reconstructs 15 major interchanges

Bridges: widens 13; adds 53; replaces 74

Increases design speed to 60 mph

Operations and Maintenance

P3 - 40 year contract

Design-Build-Finance-Operate-Maintain

2,310 days (6.33 years) for design and construction

I-4 Mobility Partners

Concessionaire: Skanska, John Laing

Construction JV: SGL – Skanska Granite Lane

Design JV: Jacobs - HDR

Quality Assurance Firm (QAF): Volkert

Operations & Maintenance: HDR|ICA

FDOT Oversight

Construction: HNTB

Design: RS&H

Public Information: Global 5

$2.323 billion (yoe) Design-Build cost

Loreen Bobo, P.E.FDOT I-4 Ultimate Program Manager

Loreen.Bobo@dot.state.fl.us

1.844.ULT.INFO (858.4636)

407.670.2341 (Office)

• 40 Miles of Roadway

• Replacing or Widening– 29 Overpass Bridges

– 25 Mainline Bridges

• Four System to System Interchanges

• Four Express Lanes (Two in Each Direction)

• Six General Use Lanes

http://www.i4express.com/

BTU - Project Overview

South Extension

• Segment 1 - West of CR 532 (Polk/Osceola County Line) to West of SR 528 (Beachline Expressway) – Osceola Co. (431456-1) and Orange County (242484-8)

• Segment 2 - West of SR 528 (Beachline Expressway) to West of SR 435 (Kirkman Road) – Orange County (242484-7)

• Segment 5 - West of US 27 to West of CR 532 (Polk/Osceola County Line) – Polk County (201210-3)

North Extension

• Segment 3 - East of SR 434 to East of US 17-92 –Seminole County (242592-4)

• Segment 4 - East of US 17-92 to east of SR 472 – Volusia County (408464-2)

Segment 5

Segment 1

Segment 1

Segment 2

Segment 3

Segment 4

I-4 UltimateUnder Construction

http://www.i4express.com/

BTU - Project Overview

Challenges

• Continued urban growth for industry and population

• Impact of current and further growth in the theme parks and entertainment regions

• Improvements needed to make the corridor physically feasible for the addition of a rail line

• Funding - optimize existing infrastructure thru operational improvements to save $ for larger capacity improvements

• Politics

• Environmental impact and obstacles

• Improvements at interchanges w/large concentration of DCs or private truck stops

Opportunities

• Implementation of Traffic Management Systems

• Opportunity for the addition of a rail corridor

• Maintain some semblance of separation between the major communities – Orlando, Lakeland, Tampa

• Concentrate major freight activities in select areas to make the best investment decisions for freight-related infrastructure improvements

• Ways to optimize existing infrastructure thru operational improvements to save $

Closing

• I-4 Corridor will remain a series of hot spots for heavy freight activity at almost every interchange

• Challenges to maintain optimum traffic flow will continue

• New technologies will have an impact– Autonomous vehicles

– Traffic Management Systems

• Possibility remains for it to become a multimodal corridor with the addition of rail

Questions?

Keith Robbins

District Freight Coordinator, FDOT District One, Bartow

(863)519-2913

Keith.Robbins@dot.state.fl.us