Membership Mee+ng. Fluor Auditorium Thursday, May 19 th, :30 a.m. - 9:00 a.m.

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1 Membership Mee+ng Fluor Auditorium Thursday, May 19 th, :30 a.m. - 9:00 a.m.

2 Good Morning and Thank You

3 Where We are Located Port Freeport is located in Brazoria County on the Texas Coast on the Gulf of Mexico Approximately 60 miles South of Houston 4 Days from Cristobal, Panama 4 Days from Cartagena, Colombia 3.5 Days from Kingston, Jamaica 2.75 Days from Freeport, Bahamas

4 Highway Approaches Houston Rosenberg I-45 SH 36 SH 288 SH Galveston FREEPORT 523

5 Port Commission Ravi K. Singhania Position 3, PCT. 1 Bill Terry Position 5, PCT. 3 Paul Kresta Position 4, PCT. 2 John Hoss Position 2, PCT. 1 Shane Pirtle Position 1, PCT. 1 Rudy Santos Position 6, PCT 4 Each Port Commissioner serves a term of 6 years. The 6 year terms are staggered with an elechon held each uneven numbered year for two commissioner posihons.

6 2008

7 Today

8 Today

9 Our Current Customers

10 Primary Trade Lanes and Cargo Major Trade Areas Central America South America Middle East Africa Far East Europe (Global Reach) Major Import Commodi+es Fresh Fruits Aggregate Automobiles Crude Oil Bulk Chemicals Clothing Paper Goods Major Export Commodi+es Bulk Chemicals Automobiles General Cargo Clothing/Paper Good Rice PlasHc Resin Crude Oil Liquefied Natural Gas

11 New Business Commenced May 2014 Impor+ng Steel Billets and Pipe Project Cargo for Bay City Plant $1.7B Bay City Plant to be fully opera+onal by 2017 Commenced October 2014 Impor+ng Fresh Fruit Expor+ng General Cargo Commenced June 2015 Expor+ng GM to Middle East Impor+ng Buicks from Korea Impor+ng High and Heavy from Japan 6,000 spaces for Vehicle Storage

12 What We Have To Offer 45 Deepwater Channel About 3 miles from Sea Buoy to Inner Harbor Capability to increase depth by 2019 GRR already underway Foreign Trade Zone no. 149 Covers Brazoria and Fort Bend CounHes under alternahve site framework All of Port s owned property can be achvated at anyhme Allows for Deferred DuHes and Inventory Tax ExempHons Long-term Business Partnership Port Freeport is a landlord port You re can build your terminal and manage your project the way you would like. Lower Cost of Business Pilotage rates are lower due to short transit Hmes Reduced daily hire due to shorter Transit Time No Harbor Dues State of the Art Infrastructure New Terminals Container Breakbulk - OEM Heavy Li` Corridor New Rail ConnecHvity in 2017 Capability for 5 units trains simultaneously Seamless connechvity between transportahon modes Water à Highway à Rail AddiHonal Acreage Available to Develop Approximately 600 acres mihgated and ready for development

13 Future Development

14 Future Development

15 Future Development Ladder Track Design Parcel 14s and 19 (100 Acres) - Approved by Union Pacific to handle Unit Trains of Automobile Cars

16 Strategic Objectives Harbor Channel Deepening and Widening Expansion of Velasco Terminal Highway 36A Corridor Highway and Rail Development/expansion of integrated warehousing facilihes and rail operahons

17 Freeport Harbor Channel Improvements

18 Advantages of Port Freeport Shortest Deepwater Channel on the Texas Coast 7.5 Miles from Channel Marker 1 to the Inner Harbor Low Maintenance dredging Cost due to rerouhng of Brazos River Home to large petrochemical complex and Bryan Mound, Strategic Petroleum Oil Reserve

19 Channel Deepening and Widening Authorized as part of the Federal WRRDA 2014 General Re-evaluaHon and Review (GRR) approval late 2016 to early 2017 ConstrucHon to start late 2018 to early 2019 Summary Current Main Channel = 45 New Improvements à to Brazos Turning Basin 50 from BTB to Velasco Terminal

20 Channel Deepening and Widening General Re-evaluaHon and Review Report (GRR) approval expected in late 2016 or early 2017 Intent is to address navigahonal issues omiged from the USCOE Feasibility Study CreaHon of: Lower bend easing Widening of the channel Enhancements to the upper turning basin. Cri$cal element

21 Container Terminal Expansion

22 Expansion of Velasco Terminal Currently 26 Paved Acres 2 STS ZPMC Post Panamax Gantry Cranes 800 berth with 47 operahonal depth 125,000 TEUS handled in FY 2015

23 Future of Velasco Terminal As Envision 250 Paved Acres 9 STS ZPMC Post Panamax Gantry Cranes 3,600 berth with 50 operahonal depth On dock rail High density configurahon 1,500,000 li` capacity

24 Connecting Velasco to Rosenberg

25 Brazoria - Fort Bend Rail Developments

26 Hwy 36A Rail Corridor Double Track 4 New Rail 3 6 New Hwy 36A 5 Widen Ex. Hwy 36 Port Improvements 1 Source: TEMS, Inc. Channel (8 Miles) 2

27 Ques+ons or Comments Jason Miura Director of Business and Economic Development