THE PORT OF VIRGINIA A CLEAR VISION. A PATH FORWARD. Stewards of Tomorrow 1

THE PORT OF VIRGINIA A CLEAR VISION. A PATH FORWARD. Stewards of Tomorrow 1

A CLEAR VISION. A PATH FORWARD. AGENDA Intro to The Port of Virginia FY 2015: Strong Planning. Strong Results. Success at The Port of Richmond Our Vision Forward Stewards of Tomorrow 2

A CLEAR VISION. A PATH FORWARD. WHO ARE THE STEWARDS OF TOMORROW? The Port of Virginia focuses on what matters most to our customers, our people, and our region. Every day we deliver superior service, safe transport, and continuous improvement. It s why we get up in the morning, and why The Port of Virginia will keep moving forward. Stewards of Tomorrow 3

A STATEWIDE FOOTPRINT LEVERAGING THE POWER OF THE PORT VIRGINIA INTERNATIONAL GATEWAY Stewards of Tomorrow 4

A CLEAR VISION. A PATH FORWARD. FY 2015: STRONG PLANNING. STRONG RESULTS. 2.5 million 20-Foot Equivalent Units (TEUs) + 4.2% + 5.9% + 12% + 10.9% 9% growth over FY 2014 Stewards of Tomorrow 5

A CLEAR VISION. A PATH FORWARD FY 2015: STRONG PLANNING. STRONG RESULTS. $500.00 $400.00 $300.00 $200.00 Consolidated Operating Income $396.67 $352.33 $310.64 $287.73 $208.62 $209.26 $458.00 $100.00 $- FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2009 and FY 2010 do not include APM statistics. Operating Revenue Compound Annual Growth Rate 2011 2014 = 11.3% Stewards of Tomorrow 6

A CLEAR VISION. A PATH FORWARD. FY 2015: STRONG PLANNING. STRONG RESULTS. 20.00 15.00 10.00 Actual Operating Loss 14.20 5.00 0.00 5.00 10.00 15.00 20.00 25.00 11.20 15.51 16.56 18.51 20.49 20.05 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 A $30+ million change in direction. Stewards of Tomorrow 7

A CLEAR VISION. A PATH FORWARD. A CATALYST FOR THE COMMONWEALTH Actual Operating Loss 20.00 14.20 15.00 $60.3 billion economic impact Port-related spending on goods and services Over 374,000 jobs Nearly 10% of the VA workforce $30.5 billion total GSP Nearly 7% of Virginia s total GSP 10.00 5.00 0.00 5.00 10.00 15.00 20.00 25.00 20.49 18.51 20.05 FY 2009 FY 2010 FY 2011 11.20 FY 2012 15.51 16.56 FY 2013 FY 2014 FY 2015 Stewards of Tomorrow 8

A CLEAR VISION. A PATH FORWARD. SELECT DISTRIBUTION CENTERS UTILIZING THE PORT The Port of Virginia Stewards of Tomorrow 9

A CLEAR VISION. A PATH FORWARD. CONNECTIVITY IS KING. The port must capitalize on its strategic road, water and rail networks to remain competitive. Stewards of Tomorrow 10

A CLEAR VISION. A PATH FORWARD CONNECTIVITY IS KING. Moving cargo from our deepwater terminals to our interior locations will lower turn times, lower emissions, increase our customers service levels and increase economic opportunities Stewards of Tomorrow 11

A CLEAR VISION. A PATH FORWARD. VIRGINIA INLAND PORT Economic engine for the Commonwealth 39 major companies have located near the Virginia Inland Port Investment of nearly $748 Million Over 8 Million sq. ft. of buildings Employment of over 8,000 people Stewards of Tomorrow 12

A CLEAR VISION. A PATH FORWARD. LOGISTICS ASSETS WITHIN 50 MILES OF RICHMOND Port of Richmond CSX Rail and NS Rail James River barge service RICHMOND Interstates 95, 64, 85, 295 Richmond International Airport Foreign Trade Zone #20 Forts AP Hill and Pickett Stewards of Tomorrow 13

A CLEAR VISION. A PATH FORWARD. THE PORT OF RICHMOND Land acreage: 121 Wharf: 1,600 feet Rail service via CSX; NS via local switch Barge service with NIT and VIG Stewards of Tomorrow 14

A CLEAR VISION. A PATH FORWARD. VISION FOR THE PORT OF RICHMOND A self-sustainable transportation node A valuable asset to The Port of Virginia, the City of Richmond, and the Commonwealth This is accomplished through strategic investments and full integration of the Port of Richmond terminal and barge operations Stewards of Tomorrow 15

A CLEAR VISION. A PATH FORWARD. VOLUME GROWTH AT POR 15000 10000 5000 6,699 7,415 4,821 4,775 3,205 3,241 +55% +39% 6,446 14,114 9,596 +47% 0 Import Export Total FY 2013 FY 2014 FY 2015 Stewards of Tomorrow 16

A CLEAR VISION. A PATH FORWARD. 64 EXPRESS MARINE HIGHWAY CONNECTOR Nine lines offering bills of lading Averaging 200 moves/week Removes trucks off the road Emissions Reductions Stewards of Tomorrow 17

A CLEAR VISION. A PATH FORWARD. CAPITAL INVESTMENTS $7.2 Million: Infrastructure upgrades and increase in the facility s safety standards $1.6 Million: Annual maintenance to ensure safety and maximize operations $3.2 Million: Rail enhancements to achieve dual access $4.2 Million: Mobile harbor crane to be delivered in December 2015 $315,000 Dredging $1.3 Million: New operating equipment: one top loader, six bomb carts, three hustlers Stewards of Tomorrow 18

A Catalyst for the Commonwealth NEW CUSTOMERS Precept Medical R1 Rubber Sabra Simms Metal Expeditors Luck stone Open Plan Systems Providence Ongoing efforts with City Economic Development to identify Commerce Road Corridor opportunities, users, investment strategies Stewards of Tomorrow 19

A CLEAR VISION. A PATH FORWARD. RICHMOND AREA PORT USERS MeadWestvaco Scoular Philip Morris Universal Leaf Evergreen Enterprises Lumber Liquidators Country Vintner DuPont Honeywell Alcoa Carpenter AMF Evonik Bondioli and Pavesi Southern States Amsted Rail Marva Marble Maruchan American Signature Reynolds Alfa-Laval Stewards of Tomorrow 20

A CLEAR VISION. A PATH FORWARD. A CATALYST FOR COMMERCE The Port of Richmond is located in an area in need of economic opportunity. An estimated 50,000 working age population reside within or in close proximity to the Port of Richmond 40+ percent of that population are considered to reside in lowand-moderate income households 28% unemployment rate among households located in the vicinity of the Port of Richmond Stewards of Tomorrow 21

A CLEAR VISION. A PATH FORWARD. THE RICHMOND MODEL Built on success in Savannah, GA Develop Commerce Corridor potential Leveraging various city of Richmond owned sites - ranging from 1 to 22 acres Identifying ancillary opportunities to support the Commerce Road corridor Inclusion of a Pathway to Employment Program Stewards of Tomorrow 22

A CLEAR VISION. A PATH FORWARD. P3 PARTNERSHIP Determine what capital is necessary from the public and private sectors to attract port related businesses to the Commerce Road Corridor. Stewards of Tomorrow 23

THE PORT OF VIRGINIA THANK YOU Stewards of Tomorrow 24

REDEVELOPMENT OF THE COMMERCE ROAD CORRIDOR LEVERAGING THE PORT OF RICHMOND Bipartisan Policy Center Infrastructure Council December 17, 2015 Douglas Koelemay

Overview Introduction to the VAP3 VAP3 s Role in Virginia P3 Project Delivery Framework P3 Risk Management Framework VAP3 s Role in the Project Initial List of Stakeholders 2

Virginia s P3 Background Virginia enacted PPTA (1995), PPEA (2002) and established a dedicated P3 office (2010) Successful P3 track record Receptive political environment towards P3 projects Strong institutional knowledge of P3 project delivery Strong public engagement and outreach Delivery of tangible transportation, social, & economic benefits 3

Transportation Agency Organization 4

VAP3 Structure and Resources 5

VAP3 s Role in Virginia Educate and communicate the role of P3 s in program and project development. Develop consistent and fair P3 procurement and project development processes. Identify, manage and/or mitigate risks related to P3 projects. Facilitate the development of P3 projects across all transportation agencies and jurisdictions. Identify and screen potential P3 projects and concepts within the P3 Pipeline. 6

Overview P3 Project Delivery Framework Project Identification High-Level Screening Project Screening Detail-Level Screening Project Development Project Procurement Comprehensive Agreement Executed RPE Implements/ VAP3 Supports 7

Project Screening High-Level Criteria: Ability to Transfer Risk Funding Requirement Ability to Raise Capital Complexity of Effectively Leveraging Private Sector Innovation/Expertise Addresses Priorities in State, Regional and/or Local Transportation Plan Project Efficiencies through P3 Delivery Detail-Level Criteria: Public Need and Benefits Economic Development Market Demand for P3 Delivery Stakeholder Support Technical Feasibility Systematic Interface and Compatibility Financial Feasibility Legal/Legislative Feasibility Project Risks 8

Overview P3 Risk Management Framework 9

VAP3 s Role in the Project Redevelopment of the Commerce Road Corridor Leveraging the Port of Richmond Utilize the P3 Project Delivery Framework to evaluate the candidacy of the Project as a P3 Utilize the P3 Risk Management Framework to identify, manage and/or mitigate risks Facilitate the key stakeholders and identify a Project champion Work with POV to develop a roadmap for development of the Project as a P3 10

VAP3 s Role in the Project Current Status Project Identification The Project is currently in the High-Level Screening High-Level Screening Project Screening Detail-Level Screening Project Development Project Procurement Comprehensive Agreement Executed RPE Implements/ VAP3 Supports 11

Initial List of Stakeholders State: Port of Virginia Virginia Department of Transportation Virginia Department of Rail and Public Transit Virginia Community College System Virginia Economic Development Authority Virginia Board of Workforce Development Virginia Secretariat of Agriculture and Forestry Local: City of Richmond Economic Development Authority of the City of Richmond Richmond Regional Planning District Commission Greater Richmond Partnership Greater Richmond Chamber of Commerce Federal: U.S. Army Corps of Engineers U.S. Economic Development Authority U.S. Department of Transportation What other stakeholders should be included? 12

REDEVELOPMENT OF THE COMMERCE ROAD CORRIDOR LEVERAGING THE PORT OF RICHMOND Bipartisan Policy Center Infrastructure Council December 17, 2015