THE PORT OF VIRGINIA

Transcription

1 THE PORT OF VIRGINIA A CATALYST FOR COMMERCE JOHN F. REINHART, CEO AND EXECUTIVE DIRECTOR VIRGINIA PORT AUTHORITY Stewards of Tomorrow 1

2 OUR TERMINALS RICHMOND MARINE TERMINAL Stewards of Tomorrow 2

3 INDUSTRY TRENDS/ISSUES Shifts in trade patterns Increasing ship sizes Panama Canal Channel deepening/height restriction projects underway TO REMAIN COMPETITIVE, PORTS HAVE TO BE ABLE TO MOVE CARGO SWIFTLY, SAFELY, AND SUSTAINABLY Stewards of Tomorrow 3

4 THE LAND OF OPPORTUNITY Source: Chain Store Guide Stewards of Tomorrow 4

5 MARKET SIZE/PORT POSITIONING The Port of Virginia s market reach is competitive in size to NY/NJ & Savannah: All three ports able to serve a market potential of +50 million people. Source: Colliers, population categories defined by R K Johns Primary: population proximate enough where the port is the preferred or exclusive gateway (based on inland distances) Secondary: the discretionary population in areas that overlap in regards to the opportunity to be served by competing ports Population figures include 16 states (AL, CT, DC, FL, GA, KY, MD, NC, NJ, NY, OH, PA, SC, TN, VA, WV) Stewards of Tomorrow 5

6 QUICK ACCESS BY RAIL Stewards of Tomorrow 6

7 Stewards of Tomorrow 7

8 A CATALYST FOR THE COMMONWEALTH $ $17.5 billion in wages 374,000 employees 9.4% Va workforce 18 million tons $53.2 billion 4.5 million tons $10.9 billion GSP $30.5 billion 6.9% of GSP Source: The Fiscal Year 2013 Economic Impacts of The Port of Virginia, Raymond A. Mason School of Business, William & Mary Stewards of Tomorrow 8

9 2014 & 2015 ECONOMIC DEVELOPMENT TOTALS Announcements: 75 Square Footage: Over 8 million Investment: Over $3.9 billion Jobs Created: 7,980 Stewards of Tomorrow 9

10 THE APPROACH IS WORKING Return the port to financial stability Reduce turn times/increase velocity Reinvest in infrastructure to meet long-term needs Stewards of Tomorrow 10

11 PORT OF VIRGINIA GATE TURN TIMES A 42% reduction in turn time from March December Stewards of Tomorrow 11

12 INVESTING FOR THE FUTURE Over $31million invested in FY2015 Planned investment of $135 million in FY2016 Ensuring our channels and berths can accommodate the larger ships Optimizing our landside facilities equipment and infrastructure Stewards of Tomorrow 12

13 WATERSIDE Stewards of Tomorrow 13

14 DEEPER, WIDER, SAFER. Jun 2015: Cost-Sharing Agreement Signed Dec 2015: Alternatives Milestone met Jan 2017: Selected Plan and Econ Dev Plans identified Aug 2017: Agency Decision Mar 2018: Civil Works Review Board Approval Stewards of Tomorrow 14

15 LANDSIDE Stewards of Tomorrow 15

16 CAPITAL OUTLAY SPENDING VS OTHER PORTS Industry 5 Year Investment Spend Comparison Actual $ Millions (15.00) FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Georgia Ports Authority South Carolina Ports Authority Port of NY/NJ Port of Baltimore Port of Houston Authority Port of Virginia Stewards of Tomorrow 16

17 PER UNIT CAPITAL SPEND COMPARISON Industry 5 Year CAPEX Spend Per TEU Actual $ Capital Spend per TEU FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Georgia Ports Authority South Carolina Ports Authority Port of NY/NJ Port of Baltimore Port of Houston Authority Port of Virginia Stewards of Tomorrow 17

18 MAJOR US EAST COAST PORTS COMPARISONS In 2014, The Port of Virginia grew the least of all Major East Coast ports. Stewards of Tomorrow 18

19 FY16 OPERATING REVENUE 45,000,000 43,000,000 41,000,000 39,000,000 37,000,000 41,460,326 39,032,949 37,301,846 38,903,466 Revenue in $ 35,000,000 33,000,000 31,000,000 29,000,000 27,000,000 25,000,000 33,747,135 July August September October November Total operating revenues Stewards of Tomorrow 19

20 FY16 VOLUME 145, , , , , , ,076 Containers 115, , , ,269 95,000 85,000 75,000 July August September October November December Stewards of Tomorrow 20

21 PHASE 1 NIT SOUTH CONVERSION $350 million capital needs Increase capacity by 400,000 containers 2017: first stacks complete 2019: all 30 stacks complete Stewards of Tomorrow 21

22 VIG II CONCEPT $320 million Increase capacity to 1.3 million containers Expanded rail operation New equipment Extended berth Stewards of Tomorrow 22

23 NIT: CAPACITY vs GROWTH 4,000,000 NIT Central/Rail RMG Conversion % 3,500,000 NIT North RMG Conversion % Containers 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 NIT South RMG Conversion % % 80.00% 60.00% 40.00% Utilization 500, % Capacity 7.5% Growth Utilization Stewards of Tomorrow 23

24 FULL POV BUILD OUT 4,000,000 VIG II Expansion and NIT South RMG Conversion NIT North RMG Conversion NIT Central/Rail RMG Conversion % 3,500, % 3,000, % Containers 2,500,000 2,000,000 1,500, % 60.00% % Utilization 1,000, % 500, % Capacity 7.5% Growth Utilization - Stewards of Tomorrow 24

25 POTENTIAL ECONOMIC IMPACTS OF NIT OPTIMIZATION $ 120,000 port-related jobs $100 million annual revenue $462 million state and local taxes $16 billion Virginia spending Stewards of Tomorrow 25

26 5 YEARS NIT Phase I, VIG II projects complete Total POV capacity: 2.95 million containers Capacity to handle 36% of volume moved by rail Stewards of Tomorrow 26

27 10 YEARS NIT II, VIG II complete Craney Island cells being built Total POV capacity: 3.5 million containers Capacity to handle 42% of volume moved by rail Stewards of Tomorrow 27

28 20 YEARS AND BEYOND Craney Island Phase I & II Total POV capacity: 5.5 million containers Capacity to handle 45% of volume moved by rail Stewards of Tomorrow 28

29 PORT INFRASTRUCTURE PROJECTS: COST NIT Phase I $350,000,000 VIG VIG II Expansion $320,000,000 NIT Phase II $230,000,000 NIT Phase III $270,000,000 Dredging Cost $300,000,000 Craney Island $1,000,000,000 Total Cost $2,600,000,000 Stewards of Tomorrow 29

30 OUTSIDE THE GATES VDOT DRPT TPO HRTAC FHWA MARAD USDOT Stewards of Tomorrow 30

31 THE PIECES ARE IN PLACE Strategic location Water depth Lack of height restrictions Rail & road infrastructure Plan for capacity and throughput Stewards of Tomorrow 31

32 ACCESSIBILITY FORTITUDE HELPFULNESS Thank you INNOVATION MINDFULNESS SUSTAINABILITY Stewards of Tomorrow 32