SPECIAL LEGISLATIVE COMMISSION TO STUDY POTENTIAL ECONOMIC OPPORTUNITIES IN THE DEVELOPMENT OF PORT FACILITIES IN THE STATE OF RHODE ISLAND

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1 Quonset Update April 7, 2011 SPECIAL LEGISLATIVE COMMISSION TO STUDY POTENTIAL ECONOMIC OPPORTUNITIES IN THE DEVELOPMENT OF PORT FACILITIES IN THE STATE OF RHODE ISLAND

2 QUONSET BUSINESS PARK 8,800 Jobs One of ever 50 jobs in R.I. is at Quonset Quonset would be R.I. s 4 th largest employer 168 Companies Only 468 Acres remain available for development Port of Davisville: 8 th largest auto importer in No. America (2010) 17% growth, 2 nd fastest in No. America 2

3 QUONSET BUSINESS PARK Waterfront Districts Davisville Waterfront Acres - 6,300 l.f. of waterfront - Public Port Quonset Waterfront Acres - 4,600 l.f. of waterfront - Fully developed with shipbuilding, marine construction, transportation. 3

4 QUONSET WORKING WATERFRONT Electric Boat Senesco Vineyard Fast Ferry Reagan Construction Specialty Diving 4

5 DAVISVILLE WATERFRONT American Mussel Harvesters RI Mooring Services Allen Harbor Marina (Town of NK) Allen Harbor Boating Association QDC warehouses Port of Davisville 5

6 Economic Impact Creates $119M in annual business output to the State Supports 1,105 direct, indirect and induced jobs. Generates $42.6M in house hold income $4M in state taxes and $5M in local taxes 6 Source: FXM Associates October 2008

7 DAVISVILLE WATERFRONT PORT OF DAVISVILLE Laydown area 31.3 acres (includes pier decks) Ship berths 4500 linear feet Channel depth -29 feet (NOAA Chart 13223) Limits vessel size and type of cargo Some areas in the Basin are less then - 29 feet 7

8 Current Operations Ro-Ro Importation 134,575 Autos in VW/Audi - Subaru - Porsche - Bentley Sea Freeze 10-15,000 metric tons Home porting NOAA vessel R/V Okeanos Explorer 8

9 2010 Auto Port Ranking Rank Port of Entry 2010 Imports % Change from Rank 2009 Imports 1 Newark, NJ 330,767-18% 1 400,958 2 Brunswick, GA 322, % 2 234,201 3 Baltimore, MD 228,749 +2% 4 224,093 4 Jacksonville, FL 189,734-1% 6 192,235 5 Tacoma, WA 170,604-23% 5 211,101 6 Los Angeles, CA 144, % ,167 7 Portland, OR 136,376-40% 3 225,943 8 Davisville, RI 134, % ,719 9 San Diego, CA 128,418-9% 8 141, Long Beach, CA 120,217-11% 9 135,489 9

10 Growth of Car Importation by Rail Automobiles by rail 20,000 +/- Subaru/Yr 35,000 +/- Fords/Year FRIP completion has enabled rail traffic to double since 2007 and triple since ,480 rail cars arrived at QBP in 2010 Major users: NORAD, Toray and BB&S 10

11 TIGER Grant $22.3M RAIL 5a. Spur Building 318 5b. Rebuild track in port area TERMINALS 4a. Grading, drainage, paving 4b. Bulkhead marine hardware ROAD 6a. Davisville Road resurfacing 6b. Tidal Drive extension PIER ONE 1a. Concrete deck repairs 1b. Cleat and bollard repairs 1c. Lighting replacement PIER TWO 2a. Paving 2b. Corner fender CRANE OPERATIONS 3a. Platform 3b. Mobile harbor crane 11

12 TIGER Projects Railroad Rehabilitation to Pier 2 and Building 318 tracks - Construction began in Dec. 2010, 77% Complete Pier 2 Improvements to Support Mobile Harbor Crane - Pre-bid mtg April 7, Bids due April 21, Construction begins June 1,

13 TIGER Projects Mobile Harbor Crane - Buy American waiver obtained - Soliciting proposals May 1, Pier 1 Improvements - Advertised for Bids April 7, Bids due April 28, Construction scheduled June 6,

14 TIGER Projects Terminal 4 & 5 Improvements - Bid scheduled for May 19, Construction scheduled to begin July 18,

15 RI PORT DEVELOPMENT OPPORTUNITIES STUDY Initial Findings: Presented March 24, 2011 Rhode Island Ports Auto imports/exports sector has been strong and has continue growth potential. There may be opportunities in break bulk. Full development of opportunities in auto import/export, offshore windfarms, barge service and break bulk. (Initial Findings: Martin Associates, RI Bays, Rivers & Watersheds Study, March 24, 2011) 15

16 Strategies Accommodate future automobile growth. Continue to aggressively pursue barge feeder container service (Marine Highway) Offshore wind farm construction 16

17 Automobile Growth Forecast Automobile Imports , , , ,000 80,000 60,000 40,000 20, Year Automobile imports have quadrupled since 1996 Estimate 180,000 automobiles to be imported in 2011 Capability to handle up to 300,000 autos per year with completion of terminal improvements 17

18 Marine Highway Barge Feeder Service QDC will continue to aggressively pursue Potential 20,000 TEU (URI Study 2009) Weekly barge service Dedicated berth at eastern end of Pier 2 Mobile Harbor Crane and Pier 2 improvements will support container barge service 18

19 Offshore Wind Terminal 5 used for off shore wind construction staging Deepwater Wind: option to lease Terminal 5 and other upland areas -117 Acres Use of berth at eastern end of Pier 2 Mobile Harbor Crane and improvements to Terminal 5, Pier 2 will support offshore wind farm construction Wind turbine blades being unloaded at the port in Menominee, Mich. Dick Lund 19

20 Future Planning: Maintenance Dredging Majority of auto vessels are: LOA 655 feet Beam 106 feet Design Draft minus 32 Port data shows: Average draft of vessels arriving at the Port is 27 Benefits of dredging: Shippers to bring in fully loaded ships 20

21 Conclusion Quonset is positioned for continued job growth Port of Davisville is an integral part of the Quonset Business Park. TIGER projects are on schedule with all projects under construction this summer. QDC marketing strategy includes continuing strong growth in the automobile import and export; continue to pursue container barge service and wind farm construction. Park growth strategies are guided by Master Land Use and Development Plan QDC to prepare for maintenance dredging program 21

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