Anticipation, Expectation and Performance of Emerging Markets

Transcription

1 Anticipation, Expectation and Performance of Emerging Markets Moderator: Steve Schellenberg, IMS Worldwide, Inc. Panelists: Don Cunningham, Lehigh Valley Economic Development Corp. Russell Held, Virginia Port Authority Please silence all cell phones. This session is being recorded. Steve Schellenberg IMS Worldwide, Inc. Steve Schellenberg is vice president of business development for IMS Worldwide. He has been involved in logistics, manufacturing, distribution and transportation for over 30 years. His experience includes managing all aspects of automotive supply chains, global distribution and third-party logistics. Steve has extensive experience in the North America Free Trade Agreement trading regions and has managed air cargo, freight forwarding and air charter operations. 2 NAIOP. Do not distribute or reproduce without written permission. 1

2 Russell Held Port of Virginia Over 30 years experience in international cargo transportation, including ocean, truck, rail, barge and warehousing. Spent 10 years with international ocean carrier Sea-Land Service, Inc., holding sales and trade lane management positions, including Trade Lane Director for the Middle East and Indian Sub-continent. 14 years at the Virginia Port Authority. Leads Economic Development, Foreign Trade Zone Services and Business Analysis & Strategy teams focused on economic impact and growing port business. 3 U.S. Containerized Cargo Forecast TEUs 90,000,000 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 Forecasted: 40 M TEUs Growth by 2022 Container Traffic Will Grow at Twice the Rate of the GDP Ports with Capacity will be in Best Position to Capture Traffic 10,000, TEUs Forecast GDP (2 3%) 4 NAIOP. Do not distribute or reproduce without written permission. 2

3 All-Water Services Shift to East Coast Cargo Travels By Rail to Midwest Markets Imports from Asia to East Coast Would Allow for Better Access to Markets Chicago Columbus Pittsburgh St Louis Imports From Asia Travel By Ship to West Coast 5 US Container Trade Market Share by Region 60.0% 50.0% 53.1% 51.9% 51.5% 51.4% 50.8% 40.0% 40.3% 41.4% 41.8% 41.9% 42.3% Market Share 30.0% 20.0% 10.0% 6.6% 6.7% 6.7% 6.7% 6.9% 0.0% CY 2014 (Jan Mar) US East Coast Ports US West Coast Ports US Gulf Ports 6 NAIOP. Do not distribute or reproduce without written permission. 3

4 Panama Canal Expansion - New Locks Will Accommodate Post-Panamax Vessels Existing Locks Max Vessel size: 4,400 TEU s 32.3 m (106 ) 12.4 m (39.5 ) 12.8 m (42 ) 49 m (160 ) New Locks Max Vessel size: 12,600 TEU s 18.3 m (60 ) 15.2 m (50 ) 7 Panama Canal vs. Suez Canal Hong Kong, China East Coast Panama Canal Suez Canal Suez Canal Via Panama Canal Distance: 11,021 nautical miles Via Suez Canal Distance: 11,705 nautical miles 8 NAIOP. Do not distribute or reproduce without written permission. 4

5 Suez Canal Port Said Mediterranean Sea Lake Timsah Bitter Lakes Overall length: 120 miles Width: 590ft / 622ft Max. permissible draft: 62ft The canal is sea level, no locks Suez Sinai Peninsula 9 It Is All About VLCS 10 NAIOP. Do not distribute or reproduce without written permission. 5

6 East Coast Ports 11 Hub and Spoke OCEAN SHIPPING TRANS- SHIPMENT FEEDER SERVICE OFF-LOADING AT REGIONAL PORT ONWARD TRANSPORT TO FINAL DESTINATION Feeder Port Truck Rail Feeder Port Truck Rail INTERNATIONAL CONTAINER SHIP HUB PORT Feeder Port Truck Rail Feeder Port Truck Rail 12 NAIOP. Do not distribute or reproduce without written permission. 6

7 Norfolk Southern Network 13 Rickenbacker Logistics Park Opened March 2008 Located 18 miles from Columbus, OH Over 15,000 acres of existing or planned development Annual lift capacity: 250,000 Accommodates the delivery of overweight containers throughout the facility 14 NAIOP. Do not distribute or reproduce without written permission. 7

8 CSX Network 15 NW Ohio: Development Opportunities NW Ohio Terminal Main Gate CSX Mainline 2,000 Acre Development Area Wood County Economic Development, Inc. has reserved 2,000 acres adjacent to the new terminal for industrial development. 16 NAIOP. Do not distribute or reproduce without written permission. 8

9 17 Virginia Inland Port The Virginia Inland Port (VIP) is located 220 miles northwest of Norfolk in Front Royal, VA, across 161 acres Handled over 32,179 containers in 2013 On-site rail service by Norfolk Southern with five-day-a-week rail service between the VIP and the marine terminals in Hampton Roads Direct interstate access to I-81 and I NAIOP. Do not distribute or reproduce without written permission. 9

10 Virginia Inland Port Target Market 19 Richmond Barge 20 NAIOP. Do not distribute or reproduce without written permission. 10

11 Port of Richmond 14 acres of land for development 34 paved acres 41 Reefer Power Connections Adjacent to I95 CSX Rail (rail improvements made by VPA in 2013) 21 Allegheny Warehouses 22 NAIOP. Do not distribute or reproduce without written permission. 11

12 23 Norfolk Southern Greensboro Rail Service 24 NAIOP. Do not distribute or reproduce without written permission. 12

13 Greensboro Customers 25 CenterPoint Intermodal Center Suffolk, VA 26 NAIOP. Do not distribute or reproduce without written permission. 13

14 Don Cunningham Lehigh Valley Economic Development Corporation 22-year career in Lehigh Valley s public and private sectors Restructured Lehigh County s economic development operations as County Executive Two-term Mayor of Bethlehem credited with authoring the economic renaissance of the city Oversaw $4 billion of Pennsylvania s budget as Secretary of the Department of General Services Served a key role in corporate communications at PPL, a Fortune 500 company headquartered in Lehigh Valley 27 Lehigh Valley Fastest-growing and third-most populous region in PA $33B economy spread across diversified industry sectors More than 300,000 employed at 15,300 companies Corporate headquarters Air Products, PPL, Crayola, Olympus America, B. Braun Key location for international brands Mack Trucks, Amazon.com, Coca-Cola, Kraft Foods, Walmart 28 NAIOP. Do not distribute or reproduce without written permission. 14

15 Lehigh Valley Location 29 Well Developed Transportation Infrastructure Road I-78 I-80 I-476 Rail Class 1 Norfolk Southern Rail Class 1 Canadian Pacific Rail Lehigh Valley Intermodal Air Lehigh Valley International Airport Newark Liberty International Airport Philadelphia International Airport Water Port of New York & New Jersey at Newark Port of Philadelphia 30 NAIOP. Do not distribute or reproduce without written permission. 15

16 Bethlehem Intermodal & LVRB Lehigh Valley Rail Management Intermodal Terminal Two Class I Railroads; Norfolk Southern Railway and Canadian Pacific Home to 200 acre Intermodal facility. Short line rail service, railcar storage Transload services Railroad switching Class I - Norfolk Southern and Canadian Pacific 9,000 feet for conventional intermodal (TOFC/COFC) 14,000 feet for Triple Crown Services Truck and Rail Scales Operational seven days a week 31 Inland Port Discussions 32 NAIOP. Do not distribute or reproduce without written permission. 16

17 Industrial and Logistics Market Industrial market growth in the Lehigh Valley Total space grew from 35M SF in 1997 to 62M in 2013 Since 2012, 3M SF of has been delivered to the market Currently 3.8M SF under construction Less then 5% vacancy More than 27 million SF proposed in the market Home to large distribution centers Walmart, Amazon.com, Nestlé, BMW, Home Depot Presence of 3 rd party logistics providers NFI, Nexus, OHL, DSC, Kuehne + Nagel, Americold 33 Food & Beverage Manufacturing Home to 46 food & 11 beverage manufacturers Employing more than 3,500 workers Pay a total of $180 million per year in wages Nestle, Kraft, Boston Beer, Coca-Cola Bimbo, Freshpet, Ocean Spray Availability of water Wastewater treatment plant 34 NAIOP. Do not distribute or reproduce without written permission. 17

18 Investment Incentives Pennsylvania s role and investment NIZ CRIZ KOZ KSDZ PA First Grant Job Creation Tax Credit Training Grants Real Estate/Equipment Financing Supported by internal redevelopment program Balance of urban infill and greenfield development 35 Q&A This is your opportunity to make this session exactly what you need it to be Ask the question. Please note that this session is being recorded, so before speaking, please either proceed to a standing microphone or raise your hand and wait until a mic runner reaches you. Thank you! 36 NAIOP. Do not distribute or reproduce without written permission. 18