Session 1: The Coming Resin Boom in the Gulf Coast Moderator:Curtis D. Spencer, President, IMS...
If you can't read please download the document
Session 1: The Coming Resin Boom in the Gulf Coast Moderator:Curtis D. Spencer, President, IMS Worldwide, Inc. SPEAKERS:Gary Furneaux, ExxonMobil, Baytown,
Session 1: The Coming Resin Boom in the Gulf Coast
Moderator:Curtis D. Spencer, President, IMS Worldwide, Inc.
SPEAKERS:Gary Furneaux, ExxonMobil, Baytown, Texas Frank
Vingerhoets, President KTN Americas
Slide 2
Table of Contents How much Resin are we talking about? What
transportation infrastructure is needed in order to manage this
Resin Boom? How are the packagers, truckers and others situated to
process this much Resin? What will the impact be on Harris County?
www.imsw.com Foreign Trade Zone, Logistics and Supply Chain
Consulting
Slide 3
Slide 4
Slide 5
How Much Resin? 22 Billion Lbs/Yr MORE Than we produce today.
30% will be Exported- SO- Just for Exports. That is 107,300 more
Resin Rail-Cars That is 23,800 more SIT storage spaces in Greater
Harris County That is 400,000 more container loads/year Packaged in
40 Million More Feet of Warehouses. Equals Huge Boom for Harris
County! www.imsw.com Foreign Trade Zone, Logistics and Supply Chain
Consulting
Slide 6
ProprietarySlide 6 Managing the Challenges of Accelerated
Growth Gary Furneaux, ExxonMobil Baytown Texas Harris County
International Trade & Transportation Conference October 23,
2014
Slide 7
ProprietarySlide 7 Gulf Coast Growth Shale Gas Boom = Feedstock
= Resin Production Gulf Coast Growth - New Stream Crackers - New
Reactors - De-bottleneck projects ExxonMobil - Current Gulf Coast
exports = ~300kTa - North American Growth Project = 1300kTa * 1 X
Steam Cracker * 2 X Polyethylene Reactors - Proposed 1 X
Polyethylene Reactor = 650kTa Potential growth from 300kTa to
2250kTa Potential growth from 50 to 360 trucks per day
Slide 8
ProprietarySlide 8 Growth Challenges - Rail Current Operations
- Load Hopper railcars for storage / transportation - Rail to
Houston area packaging facilities or NA customers Growth Challenges
- Houston rail congestion - Storage track availability
Opportunities - Operational opportunities with Railroads * 7 day a
week switching * Communication with RRs / forecasting to packagers
- 286k capable track - RR storage track (SIT) or on-site track
(loads & empties) - Packaging company rail track - Packaging
on-site or adjacent property
Slide 9
ProprietarySlide 9 Growth Challenges Packaging / Storage
Current Operations - Railcars offloaded to packaging lines /
Seabulk loading - Temporary storage prior to container loading -
Drayage to Port / Railheads for export Growth Challenges -
Packaging capacity - Rail infrastructure - More storage
requirements / slower throughput Opportunities - Communicate growth
plans with packaging companies - Commitment agreements versus
enabling agreements - Accurate volume forecasts - Operational
opportunities with Railroads - High-speed packaging equipment -
Rail infrastructure matches capacity increases
Slide 10
ProprietarySlide 10 Growth Challenges Trucking Current
Operations - 20 and 40 containers drayed to PoH and Railheads -
Container Yards / Trailer Transfers often utilized - Port Hours 5
days a week / 0700-1700 - Railroad Intermodal ramps open ~24 / 7 -
Road weight limits 84k lbs.(w/ permit) Growth Challenges -
Infrastructure - Traffic congestion - Truck / Chassis availability
- Driver availability - Safety
ProprietarySlide 12 Growth Challenges - Port Current Operations
- Barbours Cut / Bayport container terminals - 2013: ~ 2M TEUs -
2013: Plastics largest export by tonnage / $ value - ~ balanced
container availability Growth Challenges - Export growth - Panama
Canal Growth - Infrastructure challenges: port depth / turning
basin Opportunities - Expand port operating hours (CBP) - Shippers
commit volumes to off-hours - Shippers communicate growth plans -
Operational efficiencies
Slide 13
ProprietarySlide 13 Growth Challenges Marine Dry Cargo Current
Operations - All major shipping lines serve Port of Houston -
Intermodal to LA / LB Growth Challenges - Container availability -
Panama Canal implications Opportunities - Longer-term MDC
agreements - Commitment agreements versus enabling agreements -
Monitor allocation agreements - Accurate volume forecasts -
Communication with SSL equipment managers - Reposition containers
(Dallas / MX / East Coast strings) - Freight Forwarder serves to
coordinate multiple parties
Slide 14
New Manufacturing in Harris County RESIN BOOM ! Frank
Vingerhoets, President KTN Americas October 23 rd 2014
Slide 15
Key Data Covered warehouse capacity 60,000,000 ft Logistics
platforms 150 Countries 28 Employees 11,000 Revenue $1.4 billion
Headquarters Antwerp, Belgium Structure Privately owned company
Number of silos 3,100
Slide 16
Worldwide Locations
Slide 17
North America
Slide 18
Houston Locations FUTURE Current
Slide 19
KTN HOUSTON POLYMERS TERMINAL, Houston TX
Slide 20
20 ETHYLENE PROJECTS 10 new gas crackers have announced:
Chevron Phillips (Cedar Bayou), ExxonMobil (Baytown), Dow
(Freeport), Formosa (Point Comfort & Louisiana), OxyChem
(Ingleside), Axiall (Louisiana), Sasol (Lake Charles), Shell
(Monaca) and Odebrecht (Parkersville, WV).
Slide 21
Project CCLT Master plan Site is connected to Union Pacific and
BNSF: High capacity yard of 2,000 cars Large inbound and outbound
tracks for flexibility to receive large block trains Easy access to
major road connections (Grand Parkway 99, I- 10, 146) Close
proximity to Barbours Cut and Bayport Container Terminals Heavy
Haul to Cedar Bayou Barge Terminal Foreign Trade Zone Facility
21
Slide 22
Project CCLT Master plan 22
Slide 23
Project CCLT Artist Impression 23
Slide 24
Project CCLT Phase I 24 500,000 sqft warehousing + supporting
buildings (office, maintenance): Large civil infrastructure:
Entrance road Massive drainage and detention structure to support
master plan development Rail development: Connection UP & BNSF
per approved design Rail tracks to building + bulk unloading tracks
150 HC spots yard + lead and run-around tracks