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
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
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
Managing the Challenges of Accelerated Growth
Gary Furneaux, ExxonMobil Baytown Texas
Harris County International Trade & Transportation Conference
October 23, 2014
Proprietary
Slide 6
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
- North American Growth Project
= ~300kTa
= 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
Proprietary
Slide 7
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
Proprietary
Slide 8
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
Proprietary
Slide 9
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
Proprietary
Slide 10
Growth Challenges – Trucking
 Opportunities
- Support infrastructure improvement projects
- Dedicated drayage truck fleets / operations
- Safely Increase truck weight limits
- Orderly transition of chassis ownership
- Commitment agreements vs enabling agreements
- Dedicated trucking operations / standard driver hrs.
- Accurate volume forecasts
- Driver safety standards
- Resin producer / packager - truck related
infrastructure (container yard / staging yard, etc.)
- Transportation Management
Proprietary
Slide 11
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
Proprietary
Slide 12
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
Proprietary
Slide 13
New Manufacturing in Harris County
RESIN BOOM !
Frank Vingerhoets, President KTN Americas
October 23rd 2014
Key Data
Structure
Privately owned company
Headquarters
Antwerp, Belgium
Revenue
$1.4 billion
Employees
11,000
Countries
28
Logistics platforms
150
Covered warehouse capacity
60,000,000 ft²
Number of silos
3,100
Worldwide Locations
North America
Houston Locations
FUTURE
Current
Current
KTN HOUSTON POLYMERS TERMINAL, Houston TX
Sq. Ft.
1,850,000
Railcar spots
540
Silos
24
Boxing Lines
7
Bagging Lines
7
Repacking Rooms
1
Temp Controlled Rooms
n/a
Special Added Services
3
Transfer Systems
6
# of Buildings
4
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).
20
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, I10, 146)
Close proximity to Barbour’s Cut and Bayport Container
Terminals
Heavy Haul to Cedar Bayou Barge Terminal
Foreign Trade Zone Facility
21
Project CCLT – Master plan
22
Project CCLT – Artist Impression
23
Project CCLT – Phase I
• 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
24
Project CCLT – Phase I
25
Project CCLT – Phase I
26
Thank You
for your
attention !!!
27