Florida s Gateway Built to move more with less. Barrie Bloom, GEM Realty Capital Carl Warren, CSX Mark Levy, JLL

Transcription

1 Florida s Gateway Built to move more with less Barrie Bloom, GEM Realty Capital Carl Warren, CSX Mark Levy, JLL

2 Barrie Bloom, Senior Vice President GEM Realty Capital Ms. Bloom joined GEM in 2013 and is a member of both the portfolio management and acquisitions teams for GEM Realty Properties. As an asset manager, Ms. Bloom is involved in all facets of asset management of residential assets and credit investments and is responsible for quarterly reporting and annual budget presentations to the members of the Investment Committee. For acquisitions, Ms. Bloom coordinates acquisition due diligence efforts, is involved in the deal negotiation process, and sources private-market real estate opportunities. Prior to joining GEM, Ms. Bloom was a vice president at PCCP, LLC, a finance and investment management firm, where she focused on workouts of mezzanine loans, acquisitions of distressed properties, and originating senior loans from 2010 through In 2008 and 2009, she was at Lehman Brothers Real Estate Mezzanine Funds where she worked to restructure leverage facilities and distressed properties. Prior to attending business school, Ms. Bloom was a loan officer at LaSalle Bank in the for-sale residential division. Ms. Bloom received a Masters of Business Administration from Kellogg School of Management, Northwestern University, in 2008, and received a Bachelor of Business Administration from the University of Illinois at Urbana-Champaign in 2003.

3 Carl Warren, Director Industrial Development, East CSX Transportation Carl Warren began his transportation career in 1996 with the BNSF Railway with positions in finance, network development and intermodal. Prior to joining CSX he was a senior official at the Port of Portland in Portland, Oregon. At CSX, Carl has held a number of roles utilizing his experience in infrastructure development, strategic planning and intermodal. In his current role he is responsible for infrastructure development with Ports and industrial development in South Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania, New Jersey, New York, Massachusetts and the Canadian Province of Quebec. He is a graduate of Wesleyan University in Middletown, Connecticut and holds a M.S. in Transportation from the University of Washington in Seattle, Washington.

4 Mark Levy, Executive Managing Director JLL Mark G. Levy is an Executive Managing Director and is the National Practice Leader of the firm s U.S. Port, Airports and Global Infrastructure Practice, based in Washington, D.C. He is also a senior member of the firm s Mid Atlantic U.S. Executive Committee with both key business line and market oversight responsibilities. Mark s highly diverse career has spanned over 25 years and has included senior leadership roles in asset management, investment and development within both public and private real estate companies. Immediately prior to joining JLL, Mark served as Investment Officer/Regional Head of Capital Deployment in the Eastern United States for Prologis (NYSE:PLD). Formerly, he ran the company s Mid Atlantic operations, with responsibility for all company activities including asset management, development, acquisitions and leasing. Mark also has held senior level management roles at Duke Realty Corporation, Opus Corporation as well as the Friedman Realty Group where he oversaw much of Sumitomo Corporation of America s U.S. portfolio. Mark has both a B.S. in Honors Economics and a B.A. in English from Syracuse University and is a member of the Washington, DC Area Alumni Association.

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6 Move more with less Goods to be shipped at a faster, repeatable rate Lower costs Lower environmental impact High-tech, clean design Superior connectivity Unmatched access to CSX Winter Haven Intermodal

7 A shelter from rising transportation costs Cutting-edge technologies and green design Ultra-efficient electric cranes that lower terminal emissions Handheld gate scanners that reduce truck idle times Remote switches to increase operational efficiency

8 The park acres Planned for 8 million square feet of Class A industrial development Direct CSX rail access Drayage cost reductions On-site use of hostler trucks for quick /efficient transport of trailers to the intermodal center High-speed rail access to multiple ports/cities Easy access to highways/thoroughfares

9 TRANSPORTATION COSTS

10 Rising transportation costs Transportation growth is expected to continue Highway congestion is increasing Trucks experiencing pressure on Rising fuel prices High driver turnover Rising insurance costs Hours of service change Highway congestion Driver shortages 2020 Highway Congestion CSX Territory

11 Rail is the viable transportation alternative Average shipping rates (Cents per ton-mile) Truck Rail Carload/Truckload Bulk Intermodal

12 Florida s Gateway can lower the cost of Florida transportation 12.6 billion tons moved by truck and multimodal rail between Central Florida and the U.S. lower 48 states in 2015 Central Florida has a significant inbound to outbound imbalance for both truck an intermodal rail The target commodities are non-bulk types of cargo that are hauled by truck from distances to and from Orlando that are at least 500 miles away The 500-mile segment is where intermodal rail is generally cheaper than truck Goods coming from outside Florida can be transported more cheaply by rail to Winter Haven and distributed throughout the state by truck

13 A gateway to international trade NORTH AMERICA CLASS I RAIL NETWORKS AND MAJOR CONTAINER PORTS Imported goods from Asia arrive in Florida via: Ports of Los Angeles and Long Beach, rail to Atlanta via BNSF, rail to Winter Haven via CSX Port of Savannah, truck or CSX rail to Winter Haven

14 A low cost option to serve urban markets Truck rates from Winter Haven to Jacksonville, Miami, Orlando and Tampa are very competitive

15 WHY FLORIDA

16 Florida s population growth With nearly 20.7 millions residents, Florida ranks 3 rd in U.S. population behind California and Texas 1,000 people per day make Florida their home

17 Location 1 HOUR to Tampa and Orlando 3 HOURS to Miami 5.5 HOURS to Savannah 6.5 HOURS to Atlanta and Charleston 50 miles 200 miles 350 miles 500 miles 7.5 HOURS to Mobile 18 MILLION PEOPLE within 200 miles

18 Winter Haven part of an evolving plan New sidings between Chicago and Florida 38 projects through 2020 to improve velocity and throughput Clearances on I-95 Corridor Virginia Avenue Tunnel in Washington DC eliminates major bottleneck Terminal projects Pittsburgh Carolina Connector Inland Ports in Georgia and South Carolina

19 Hub strategy expands market opportunities Chicago Hub-and-Spoke Network Northwest Ohio Pittsburgh Montreal NY/NJ Philadelphia Expanding hub strategy to Rocky Mount, North Carolina Captures a vibrant Raleigh market and provides hub connectivity in 100+ lanes Initial build to serve 186 lanes, 265k loads Preliminary engineering and design is underway St. Louis Memphis New Orleans Atlanta Raleigh Portsmouth Wilmington Charleston Savannah Jacksonville Northwest Ohio hub continues to facilitate growth Comprehensive Pittsburgh offering upon opening in mid-2017 New Memphis to the Northeast service starting February 2017 New service via NWOH Hubs Miami

20 Florida s Gateway public benefit estimate Output (cost of goods & services) during construction - $112M 1,370 jobs Years 1 & 2 construction, services, etc. 200 jobs at terminal at opening Over 10 year projected build-out $10.6B in output $900M in tax revenues state & local level 8,500 jobs

21 The future of Florida s Gateway The new central distribution point in Florida connecting the state s vast population to global trade lanes Connectivity with the Port of Savannah, which maintains on dock rail and the fastest rail transit times in the South Atlantic Intermodal terminal operation Automotive terminal operation Associated warehousing, distribution & service facilities in the future plans

22 COMMUNITY ENGAGEMENT

23 The community Challenges 2007 Headline Lakeland Ledger Rally Rails Against CSX Facility Plans Concerns from local community, common with many intermodal development projects Pollution Noise Solution 2014 Headline Lakeland Ledger New Winter Haven CSX Rail Terminal is Vanguard of Future Communications plan Proactive approach Public meetings Correct misconceptions Educate surrounding community

24 Lessons learned Communication is key Educate the general public and specific local community groups Disseminate the correct information Avoid misconceptions

25 ENVIRONMENTAL IMPACT

26 Environmental benefits of rail transportation A gallon of diesel fuel can move a ton of freight a distance of 414 miles A truck, on average, moves a ton of freight about 100 miles for each gallon of diesel fuel Trucks emit about 4 times more greenhouse gases than freight rail A single intermodal train can take 280 long haul trucks off of the highway

27 A focus on sustainability Previously utilized as Brownfield LEED certified buildings Solar panels on each building Three wide-span electric cranes Produce zero on-site emissions Recover energy on downward moves Reduce number of hostlers in yards Facility designed for optimal rail efficiency

28 Environmental impact Making the environment a priority Protecting the wetlands and endangered species

29 Takeaways Florida s Gateway is a validation of the logistics park model Our value proposition is fueled by an optimal location, the efficiency of the logistics park model and the cost-effectiveness of intermodal transportation This is a strategic land position as it relates to the long term growth of the industrial market