Emerging & Alternative Ports Webinar Hosted by Retail Industry Leaders Association & American Shipper May 12, 2009 Casey Chroust Senior Vice President, Retail Operations RILA Chris Gillis Editor American Shipper Dean Tracy Director, International Transportation Lowe’s Participants Raul Alfonso, Director, Trade Development & Marketing Container Cargo Jacksonville Port Authority Bobby Landry, Director, Marketing Division Port of New Orleans Shaun Stevenson, Vice President, Marketing & Business Development Prince Rupert Port Authority Raul Alfonso Director, Trade Development & Marketing Container Cargo Jacksonville Port Authority JAXPORT - Jacksonville, FL An Emerging Port that Should be on all Radar Screens Cleveland Chicago New York Philadelphia Cincinnati Pittsburgh Washington, D.C. Richmond Nashville Charlotte Truck Transit Time 8 Hours reach 50 million consumers Atlanta Montgomery 10 New Orleans 24 Hours reach 60% of U.S. Population 95 Columbia 75 Jacksonville Orlando Miami JAXPORT – Our Port Terminals • • • • Container, Break Bulk, Ro/Ro, Bulk Refrigerated On-Dock Warehouse On-Dock Rail Services Ocean Services from: South America, Caribbean, Asia, Europe, Mediterranean, Africa • • • • Container, Break Bulk, Ro/Ro Facilities Refrigerated On-Dock Warehouse On-Dock Rail Services Ocean Services from: South America, Caribbean, Asia, Europe, Mediterranean, Africa New Terminals – MOL & HANJIN Operational since January 2009 • • • • New state of the art Container Terminal • • Operated by TRAPAC • 800,000 TEU Capacity • On-Dock Rail access available for development Operational 2011-2012 New state of the art Container Terminal Operated by HANJIN 700,000 TEU Capacity On-Dock Rail access available for development Excellent Rail Connections CSX RAIL CSX provides rail service to all three JAXPORT marine terminals. Excellent cost effective gateway to the South Atlantic, Mid West, Gulf & North East markets. NORFOLK SOUTHERN RAIL Superior intermodal network. Excellent cost effective gateway to the South Atlantic, Mid West, Gulf & North East markets. FLORIDA EAST COAST (FEC) Services the South Florida market from Jacksonville offering 9 daily trains. (Overnight Service) with very competitive rates. Top 10 Logistics-friendly Cities (Based on rankings of rail, seaports and air-cargo access) 1. New York 2. Houston 3. Chicago th Ranked 4 4. Cleveland Among Coastal Port Cities 5. Detroit in the US 6. St. Louis 7. Minneapolis-St Paul 8. San Francisco-Oakland 9. Kansas City, MO 10. Jacksonville Others of Interest: 13. Baltimore 14. Los Angeles 16. Miami 17. VA Beach/Norfolk/ Newport News 25. Savannah 46. Charleston Top 10 “Logistics Metros” in the U.S. and “Five-Star Logistics Metro” 2007 Source: Based on annual study and materials developed by Expansion Management and Logistics Today magazines. Southeast USA Projected Population - 2017 Southeast Total Projected Consumer Market: 63,353,085 Alabama 9% Tennessee 10% Florida 41% South Carolina 8% Long-term Planning to better Serve Your Growing Customer Base Sources: Decision Data 2007 USDA Economic Research Service 2008 North Carolina 15% Georgia 17% Jacksonville, FL A Growing City because of its Port and its Logistics Excellence! Who is Expanding in JAX? • • • • • • • • • • • • • • • • • Bridgestone – 1 Million SF Coach – 850,000 SF Samsonite – 817,000 SF Sears Logistics – 812,000 SF Unilever – 772,000 SF Dr. Pepper – 600,000 SF BJs Wholesale – 480,000 SF Gen. Electric – 475,000 SF Michael’s – 300,000 SF Kraft Foods – 350,000 SF Hanes – 350,000 SF NDI Freight – 330,000 SF VW of America – 260,000 SF BMW of America – 220,000 SF PSS Medical – 170,000 SF Johnstone Supply – 120,000 SF Preferred Freezers – 134,000 SF • • • • • • • • • • • • • • • • • Int’l Granite – 130,000 SF Shafer Dev. – 1.2 Million SF Oakmond Industrial – 850,000 SF Johnson Dev. – 754,000 SF Republic Dev. – 674,000 SF Benderson Dev. – 600,000 SF Georgia Pacific – 546,000 SF Wagner Ind. – 500,000 SF Prologis – 486,000 SF ICS Logistics – 375,000 SF Millard Ref. – 185,000 SF Us Cold Storage – 250,000 SF Hillman Group – 100,000 SF Malnove – 225,000 SF Laney & Duke - 360,000 SF Henry Scheim – 200,000 SF Edgewater Medical – 120,000 SF JAXPORT - Jacksonville, FL Now on all Radar Screens Cleveland Chicago New York Philadelphia Cincinnati Pittsburgh Washington, D.C. Richmond Nashville Charlotte Truck Transit Time 8 Hours reach 50 million consumers Atlanta Montgomery 10 New Orleans 24 Hours reach 60% of U.S. Population 95 Columbia 75 Jacksonville Orlando Miami Bobby Landry Director, Marketing Division Port of New Orleans Inland Connections New Orleans is connected to 14,500 miles of waterways through Mississippi River and tributaries. Inland Connections New Orleans is connected to 14,500 miles of waterways through Mississippi River and tributaries. Six Class-One Railroads connect New Orleans to inland markets. Napoleon Ave. Container Terminal 366,000 TEUs Annual Capacity Expandable to 1.2 million TEUs Annually Near dock Intermodal Rail Terminal Container Terminal Expansion Red Existing 366,000 TEUs Green Phase 2 194,000 TEUs Blue Phase 3 800,000 Total 1.178 million TEU Shaun Stevenson Vice President, Marketing & Business Development Prince Rupert Port Authority Prince Rupert Gateway Advantages The Reliable Northern Express Trade Corridor • • • • • • • Closest North American Port to Asia Superior/uncongested rail connection to North American heartland Deepest natural harbour in North America Safe, sheltered & efficient access from international shipping lanes Integrated Security: 100% radiation & VACCIS scanning Exceptional community & labour support for expansion Capacity for growth 24 The Prince Rupert Advantage 25 The Prince Rupert Advantage Fairview Container Terminal 98% marine-to-rail intermodal Design capacity: 500,000 TEUs 360 meter container quay 17.0 meter berth depth (low tide) 3 Ultra Post Panamax Cranes Container Yard capacity @ 4 high = 9,430 TEUs Reefer stacks with 72 plugs 7 working tracks (5,500m) 6 storage tracks (6,100m) 4 Radiation Scanning Portals; VACCIS screening 2008 Performance • • • • Current service - Two vessel calls per week Vessels arriving & departing on schedule 181,894 TEUs handled in 2008 Best terminal velocity on west coast (avg 30+ container lifts per hour) • Dwell Time: Avg. - 24 hrs; Max. - 48 hrs • Rail leg average to Chicago: 94 hrs – Consistently less than 100 hours through winter operations • Yokohama, JA – Chicago: 12 days • Strong export volumes (balance) • 100% of containers scanned 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 2008 Quarterly Throughput 28 Demonstrating the Advantage Value Proposition Proof of the Proposition Speed • • • • Reliability • No congestion at port or within rail system • Little to no variability in service • Consistent and reliable transit times into Chicago and Memphis, as well as central Canada Cost • Service is price competitive • Speed reduces inventory carrying costs • Reliability improves supply chain predictability and limits variability 2 - 3 days closer to Asia (sailing) Average 24 hour terminal dwell time 4 – 8 days savings in total transit time 12-day transit Yokohama to Chicago Q&A Raul Alfonso, Director, Trade Development & Marketing Container Cargo Jacksonville Port Authority Bobby Landry, Director, Marketing Division Port of New Orleans Shaun Stevenson, Vice President, Marketing & Business Development Prince Rupert Port Authority Thank You Emerging & Alternative Ports Webinar Hosted by Retail Industry Leaders Association & American Shipper May 12, 2009