THE AG INDUSTRY & THE PORT OF VIRGINIA: GROWING OUR ECONOMY

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1 THE AG INDUSTRY & THE PORT OF VIRGINIA: GROWING OUR ECONOMY JOHN F. REINHART, CEO and EXECUTIVE DIRECTOR VIRGINIA PORT AUTHORITY Stewards of Tomorrow 1

2 AGENDA Performance update How we move Virginia s economy How we re growing to meet global demand Stewards of Tomorrow 2

3 HOW WE MOVED THE CARGO: FYTD million 20-Foot Equivalent Units (TEUs) 37% 60% 3% RMT Barge Service % change from FY 2016: + 18% 1% 2% +44% 7.9% growth over FY 2016 Stewards of Tomorrow 3

4 HOW WE MOVED THE CARGO: FYTD % + 18% Two Class I double stack-capable rail lines will propel us even further. The Port of Virginia is now the highest rail-volume port on the East Coast. Stewards of Tomorrow 4

5 HOW WE MOVED THE CARGO: FYTD 2017 RMT Barge Service + 44% Two Class I double stack-capable rail lines will propel us even further. Richmond Express - 50% more capacity and enables refrigerated transport a growing sector. Stewards of Tomorrow 5

6 THE PORT OF VIRGINIA: A GLOBAL GATEWAY Stewards of Tomorrow 6

7 A NEW EAST COAST ERA HAS BEGUN JULY 10, 2016 MOL BENEFACTOR 10,000 TEU Stewards of Tomorrow 7

8 THE NEW NORMAL CURRENT % OF CARGO AT THE PORT OF VIRGINIA NEW % OF CARGO AT THE PORT OF VIRGINIA Ships as large or larger than the MOL BENEFACTOR made 31 calls between July and December. Stewards of Tomorrow 8

9 COMING THIS MAY The COSCO DEVELOPMENT 13,092 TEU CAPACITY Stewards of Tomorrow 9

10 DEEPER. WIDER. SAFER. Stewards of Tomorrow 10

11 MOVING VIRGINIA S ECONOMY Stewards of Tomorrow 11

12 WE ARE A GLOBAL GATEWAY FY 2016 TOP TRADING PARTNERS (BY TEU) EXPORT IMPORT China China Belgium Germany Netherlands India Germany Vietnam Indonesia Italy India Brazil Vietnam Netherlands Japan Indonesia Saudi Arabia Spain Brazil Turkey Stewards of Tomorrow 12

13 OVERALL AG COMMODITIES EXPORTS THROUGH THE PORT OF VIRGINIA (FY16) 8% 4% 4% 8% 37% Grains, Soybeans, Starches, and Animal Feed Logs/Lumber and Articles of Wood Preserved/Prepared Food Poultry and Meat 12% Edible Vegetables, Fruit, and Nuts Unmanufactured Tobacco 27% Other Stewards of Tomorrow 13

14 VA AG EXPORTS: TOP 3 LARGEST GAINS OVER PAST FIVE YEARS Commodity Group TEU Growth: Grains, Soybeans Starches, and Animal Feed 51,341 Logs/Lumber and Articles of Wood 22,971 Edible Vegetables, Fruits and Nuts 5,713 Stewards of Tomorrow 14

15 PERDUE 260% growth % CAGR Stewards of Tomorrow 15

16 NORTHWEST HARDWOODS 224% growth % CAGR Stewards of Tomorrow 16

17 SCOULAR 86% growth % CAGR Stewards of Tomorrow 17

18 FYTD 2017 ECONOMIC DEVELOPMENT TOTALS 22 ANNOUNCEMENTS MORE THAN 1.4 MILLION SQ. FT. OF SPACE CREATED 1,998 JOBS INVESTED MORE THAN $503 MILLION Stewards of Tomorrow 18

19 GAINING MOMENTUM: East Coast Ports Market Share 35.00% 30.00% 31.75% 32.65% 25.00% 20.00% 18.96% 18.87% 15.00% 10.00% 12.81% 9.64% 14.51% 10.30% 5.00% - Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Baltimore (MPA facilities only) Charleston Port of Virginia Miami New York/New Jersey Port Everglades Savannah Stewards of Tomorrow 19

20 GAINING GROUND ON GEORGIA Making Virginia the East Coast capital for agricultural and forestry exports is central to my administration s efforts to build a new Virginia economy. By focusing on international trade growth, we generate many new revenue streams and job creation opportunities in Virginia, from our farms to our ports. - Governor Terry R. McAuliffe Stewards of Tomorrow 20

21 INVESTING IN THE FUTURE Stewards of Tomorrow 21

22 RICHMOND MARINE TERMINAL Richmond Express 50% increase in barge capacity New $4.2M mobile harbor crane $600,000 in rail improvements New 40-year lease with City of Richmond Stewards of Tomorrow 22

23 18,000 16,000 14,000 VOLUME GROWTH AT RMT 14,114 16, % 12,000 10,000 8,000 6,000 7,415 8,021 8,326 4,775 4,821 6, % +8% +39% +24% 6,446 9, % 4,000 3,241 3,205 2,000 - Stewards of Tomorrow 23 Import Export Total FY2013 FY2014 FY2015 FY2016

24 NIT SOUTH EXPANSION Increase capacity by 400,000 containers (46%) 2018: first stacks complete 2020: all 30 stacks complete $350 million investment Stewards of Tomorrow 24

25 A MINDFUL APPROACH Stewards of Tomorrow 25

26 VIRGINIA INTERNATIONAL GATEWAY Increases capacity to 1.2 million containers Expanded Rail Operation Extended Berth 4 new STS Cranes Stewards of Tomorrow 26

27 1,000,000 ADDITIONAL CONTAINERS ANNUALLY (A 40% INCREASE) 286,000 NEW JOBS ACROSS THE STATE $38 BILLION IN SPENDING $1.1 BILLION IN NEW STATE & LOCAL TAXES Source: Economic Impacts of Virginia s Maritime Industry, 2013, Raymond A. Mason School of Business, William & Mary Stewards of Tomorrow 27

28 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 28

29 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 29

30 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 Craney Island capacity when complete: 2.87 million containers Stewards of Tomorrow 30

31 WE ARE VIRGINIA S GLOBAL GATEWAY. Stewards of Tomorrow 31

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