Global Supply Chain & Economic Development Collaboration ISM-CV Triangle Chapter. 18 March 2014
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1 Global Supply Chain & Economic Development Collaboration ISM-CV Triangle Chapter 18 March 2014
2 Overview North Carolina Ports Economic Development Overview Questions and Answers
3 Ports The Backbone of the Global Economy Approximately 90% of all global cargo moves by ocean transport 90% of all consumer goods purchased in the U.S. arrived through ports 92% of all food and food-agriculture exports worldwide transported in temperature-controlled containers via ports More than 70% of general cargo worldwide moves by container ship, a number that is growing. Deep draft ports accommodate ocean cargo vessels which carry more than 99% of U.S. overseas trade by weight and 61% by value. Source: U.S. Dept. of Commerce
4 Port of Wilmington Charlotte Inland Terminal Port of Morehead City Greensboro Inland Terminal
5 Economic Development Model Cargo/Revenue Increases Jobs Retain/Recruit Taxable Investment in People, Plant, Profits
6 NC Ports Drive Statewide Prosperity Piedmont Triad 12,200 Jobs $80 million Tax Revenues Research Triangle 9,700 Jobs $65 million Tax Revenues Piedmont Triad Inland Terminal Northeast 6,800 Jobs $89 million Tax Revenues Advantage West 10,300 Jobs $66 million Tax Revenues Charlotte Region 13,000 Jobs $84 million Tax Revenues Charlotte Inland Terminal Southeast 8,200 Jobs $72 million Tax Revenues Port of Wilmington Port of Morehead City East 5,000 Jobs $42 million Tax Revenues Port Operations help provide 65,000 jobs and $500 million annually in state and local tax revenues.
7 NC Ports Enhancing the Economy Statewide Economic development agency for State Self-funded operations Gateways to world markets for North Carolina global business and industry Support more than 65,000 statewide jobs* $500 million state and local tax revenues* $7.5 billion in annual economic contribution to the State s global economy* $8.35 billion value of goods shipped* $4.4 billion remained/manufactured in NC* *NCSU-ITRE Economic Contribution Study-2011
8 North Carolina Ports Strategic Economic Development Location Charleston, SC Savannah, GA Norfolk, VA Morehead City Wilmington Within 2 days travel/1,000 miles of North Carolina s Borders: 170 million U.S. and Canadian consumers within 2 day truck delivery Nearly 70% of US population is east of the Mississippi River 65 of the country s top 100 metropolitan areas 58.2% of total U.S. retail sales Central East Coast location NC is 10 th most populated state
9 Warehousemen Equipment Operators Computer Operators Managers Logistics Coordinators Warehousemen Equipment Operators Computer Operators Managers Logistics Coordinators Trucking firms Retail Workers Warehousemen Equipment Operators Computer Operators Managers Logistics Coordinators Trucking firms Overnight providers A Single Ocean Container Thru NC s Ports Impacts Jobs and Taxable Investment Pilot organizations Tug Operators US Coast Guard Multiple Federal Agencies Leasing companies Trucking firms Rail operators Maintenance firms Steamship agents Terminal operators Customhouse brokers Freight Forwarders Logistic service providers Financial institutions Marine construction companies Int l Longshoreman Assoc (ILA) Terminal operating companies Gate Inspectors Security Officers Warehousemen Customs Officers Equipment Operators State Employees On Terminal Rail Operators US Army Corps of Engineers Other governmental agencies
10 Port of Wilmington Terminal 284 acres (1.2 sq km) Navigation Channel: 42 (12.8 m) 500,000 TEU Annual Thruput Capacity currently operating at 50% Capacity 3 Berths for Panamax and Post-Panamax Vessels 7 Cranes including 4 new Post-Panamax Cranes NC Ports employees perform terminal operations New Terminal Operating System On dock Rail ICTF (Inducement Basis) Fast, Efficient Vessel/Truck Turnaround Crane Productivity Gate Productivity
11 Top North Carolina Commodities Imports
12 Top North Carolina Commodities Exports
13 Best EAST/WEST Highway INFRASTRUCTURE Detroit Cleveland Buffalo 95 I-40 connecting to I-95 N and I-85 Washington, DC Nashville 40 Richmond Charlotte Norfolk I-140 connecting I-40 and US- 74 I Atlanta Charleston Wilmington I -73/I-74 Corridor from I-74 to I-85/I-40 Corridor in Triad Mobile Savannah New Orleans 75 Upgrade US 74 to I-74 connecting to I-95 S 95
14 NC Ports: Lowest Cost & Green Port Higher Average Per Container Haulage To Cary, NC NFK $241+ CHS $452+ SAV $ miles 140 miles 287 miles 330 miles
15 NC Ports: Lowest Cost & Green Port Higher Average Per Container Haulage to Durham, NC NFK $157+ CHS $452+ SAV $ miles 157 miles 304 miles 348 miles
16 NC Ports: Lowest Cost & Green Port Higher Average Per Container Haulage to Dunn, NC NFK $556+ CHS $489+ SAV $ miles 88 miles 247 miles 285 miles
17 Wilmington s Container Moves by Fiscal Year Wilmington s Container Volume has Grown Significantly Low Cost. Superior Service 180, ,000 Imports 140, , ,000 80,000 Exports Empty Total Moves 60,000 40,000 20,000 0
18 Port of Wilmington Growth Marsha Salisbury, Research Editor Feb 20, :00AM GMT The Journal of Commerce Magazine - News Story Among the Top 10 East Coast ports, North Carolina led 10-month year-overyear trade growth at 14.4 percent. Six of the top 10 East Coast ports showed 10-month growth in 2011 compared to 2008 in total trade: North Carolina at 52.6 percent; Jacksonville, 16.5 percent; Miami, 8.8 percent; Baltimore, 7.8 percent; Georgia, 6.3 percent; and New York-New Jersey, 3.2 percent.
19 Wilmington s Vessel & Terminal Productivity Turn Times Averaging less than 20 minutes per transaction Moves per Hour Averaging approximately 40 Net Moves per gang hour Wilmington s High Vessel and Terminal Productivity Keep Vessels on Schedule and Logistics Costs Down
20 Port of Morehead City One of the deepest ports on the U.S. East Coast Located just four miles from the Atlantic Ocean The second largest US port for the import of natural rubber which supports the tire manufacturing industry Handles both breakbulk and bulk cargo Leading US port for the export of phosphate New woodchip export terminal
21 North Carolina Ports Breakbulk Volume Total Total
22 North Carolina Ports Bulk Volume Total Total
23 Economic Development Collaboration Generates Growth in Jobs, Investment, and Port Volumes
24 NC Ports Economic Development Active Projects Project Name Industry Import/Export Project Infinity Granite/Sinks (stainless steel & ceramic) Import Container Project Slick Food processing/distribution Import/Export Container Project Catz Organic pet food processing/distribution Export to 33 countries Container Project BBSW Apparel mfg./distribution Export/Import Container Project Green Renewable/Alternative Power Generation Export Container & B/BB Project BG Petro-chemical manufacturing Import Bulk Project Moon Distilled beverages processing/distribution Export Container Project Trio Fuel wood biomass mfg/distribution Export Bulk Project Black Fuel wood biomass mfg/distribution Export Bulk Project Fox Tire mfg/distribution Export/Import Container/BB - Rubber Project??? Tire mfg/distribution Export/Import Container/BB - Rubber Project Scissorhands Fuel wood biomass mfg/distribution Export Bulk Project Clean Raw material for cleaning products Import Bulk Project Montana Manufacturing Import/Export - Container
25 NC Ports Economic Development Announced Projects Client Commodity Cargo Type Project Tarheel Intercontinental Hardwoods Currie, NC Lumber, for flooring mfg/dc Import - Container Project Casper R.C. Creations Pender County, NC Project Penguin Port of Wilmington Cold Storage Wilmington, NC Seafood Processing & Distribution Frozen & Refigerated Food Stuffs Import/Export Container Import/Export Container Project Glenwood Rooms To Go Dunn, NC Furniture Import Container
26 North Carolina Latin America Caribbean Apparel Trade Trade is apparel dominated: Yarn / Piece Goods SB with Apparel NB Honduras, Guatemala, Nicaragua, Dominican Republic, Columbia primary markets 80% of trade moves rail / trucked via South Florida US inland factors significantly favor Port Of Wilmington vs. S. Florida ($1,000) due to DC and yarn supply locations
27 Port of Wilmington Cold Storage Four bays, full capacity at 12,500 pallet positions Four-phase construction 102,000 sq. ft. initial construction; Phases 2-4 will each include 100,000 sq. ft. expansions Phase 1: 56,000 sq. ft. of usable freezer space 7,000 sq. ft. of temperature controlled loading dock 6,000 sq. ft. of administrative office space 6,000 sq. ft. for a machine room Inventory Mix to include: Pork & Poultry; Seafood; Sweet Potatoes Fruits Vegetables; Bananas NC AG ranks nationally: #1 sweet potatoes #2 pork #2 turkey #5 poultry
28 Spirit AeroSystems Wingspars Port of Wilmington
29 Spirit AeroSystems Fuselages Port of Morehead City
30 Woodchip Operations in Full Production Port of Wilmington
31 Woodchip Operations in Full Production Port of Morehead City
32 NCSPA Meeting New Industry Wood Fiber as Energy NCSPA working with Major EU Utilities US based Exporters Economic Development Community Opportunities
33 Enhancements to NC Ports Economic Development Abilities
34 NC Ports Recognized as Top 50 Green Supply Chain Partners by Inbound Logistics Magazine Electric container cranes Biodiesel fuel Biodegradable lubricants in heavy equipment High-efficient lighting in warehouse facilities Equipment modifications to reduce emissions Hybrid technologies
35 Progress at NC Ports Realignment to NC Department of Transportation for maximization of Statewide Logistics Goals Synergize Ports, Highway and Rail Infrastructure Maintain strong collaboration with NC Dept. of Commerce, State, Regional and Local Economic Development Organizations Commercial Maritime Strategy Study Published 2012 Examined North Carolina s maritime assets Determined needs for improvement to ensure North Carolina s global competitiveness Wilmington Harbor Improvement Project
36 North Carolina Maritime Strategy Study A strategic plan to move North Carolina forward as a gateway to global commerce Collaboration of freight transportation, economic development, and community interests (BCOs, Ocean/Truck Carriers, NC Ag, Military, etc.) Maritime market strategies that would offer the greatest economic benefit to the State (Industry Targets, Niche Markets) Identification of infrastructure investments to improve the State s maritime gateways and related trade corridors (Water Side / Land Side Costs)
37 Wilmington Harbor Improvement Project Comprised of three separate projects that will yield a safer, more efficient navigation channel for customers Description: Modify the size of turning basin 1,200 -> 1,500 Modify S turn at Battery Island easier to navigate Examine the entrance to the channel address shoaling issues Where we are: Letter of Intent signed Feasibility Study with USACE Year 2 of 3 Year Study
38 Thank You Jimmy Yokeley Director, Community Economic Development
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