House Select Committee on Strategic Transportation and Long Term Funding Solutions November 6, 2017 1
Welcome to N.C. Ports Fast Facts Two locations serving the Carolinas Over 350,000 teus Over 4 million tons of general cargo 600 ship calls a year Directly employ 210 Indirectly an additional 1,250 Financial summary Annual revenue $55 million Annual cash generation $14 million Profit $4.1 million 2
Ports Support N.C. 13,700+ jobs 2,200+ jobs 1,700+ jobs 12,500+ jobs 10,400+ jobs 9,800+ jobs 26,200+ jobs North Carolina jobs provided directly or indirectly by the ports statewide 76,700 + Annual tax revenues gained through the ports for the statewide economy $707 million + Annual economic contribution to the state s economy associated with goods moving through N.C. Ports $14 billion + Economic Contribution of the Institute for Transportation Research and Education, N.C. State University 3
Port of Morehead City Bulk, breakbulk, roll-on roll-off 128 acres, plus an additional 150 acres on Radio Island Navigation channel: 45 ft. M.L.L.W. 9 Berths with 5,366 ft. of wharf frontage One bridge crane, two gantry cranes, and one mobile crane 170 ship calls a year Fast, Efficient, & Low Cost Vessel reliability Crane productivity Gate productivity Favorable rates Overweight permits More than 1 million sq. ft. of storage space Rail served by Norfolk Southern Possible new crane order 4
Port of Wilmington Containers, bulk, breakbulk, roll-on roll-off 284 acres Navigation channel: 42.5 ft., tide of 4-5 ft. Accommodate 1,165 ft. LOA & 158 ft. beam vessels 600,000 TEU annual thruput capacity abundant room to grow 525 ship calls a year NC Ports employees perform terminal operations On dock intermodal rail (CSX) Refrigerated container on-terminal capability (200+ plugs) Fast, Efficient, & Low Cost Vessel reliability Crane/Gate productivity Favorable rates Overweight permits No congestion 5
Best in Class Productivity Land & waterside lack of congestion Vessel productivity Last 12 month average: 44 net crane moves/hr. Gate turn time productivity Last 12 month dual truck turn time: 32 minutes Last 12 month single truck turn time: 19 minutes Best terminal rates on U.S. East Coast; flexible contract terms Balanced Trade for a Growing Future Port of Wilmington gateway delivers millions of dollars in lower truck costs Port of Wilmington 52% Exports 48% Imports Superior customer service U.S. Ports 41% Exports 59% Imports 6
Port of Wilmington Container Services October 2016 ICL North Europe Service 2,800 TEU Vessels SeaLand Latin America Service 1,700 TEUs SeaLand Latin America Service 1,300 TEUs 7
THE Alliance - Transpacific EC2 Weekly Service 8,500 TEU Vessels 2M Alliance - Transpacific TP10/Amberjack Service 4,500 TEU Vessels ZIM Southeast Asia Z7S Service 5,000 TEU Vessels ICL - Transatlantic North Europe Service 2,800 TEU Vessels SeaLand Latin America SAE Service 1,700 TEUs SeaLand Latin America Atlantico Service 1,300 TEUs NEW SERVICE Crowley Latin America Starts November 28 Port of Wilmington Container Services Today 8
Port of Wilmington = Big Ship Ready Turning Basin Expansion Phase One Complete Evergreen Ever Laden Sept. 10, 2016 8,500 TEUs 1,099 ft. long 150 ft. wide Yang Ming Unity Aug. 7, 2016 8,200 TEUs 1,101 ft. long 140 ft. wide MSC Maureen Oct. 13, 2016 6,750 TEUs 985 ft. long 131 ft. wide Investing for North K Line Helsinki Bridge May 12, 2017 8,500 TEUs Carolina s Future 1,098 ft. long9 30 150 ft. wide 9
Container Shipping Specifications 10,001-12,500 TEU Length: 1,200+ ft (366+ m) Beam: 161-170 ft (49-52 m) Designed Draft: 45-50 ft (13-15 m) 8,001-10,000 TEU Length: 984-1,100 ft (300-335 m) Beam: 158-161 ft (48-49 m) Designed Draft: 41-48 ft (12-14m) 4,501-8,000 TEU Length: 965-984 ft (294-300 m) Beam: 141 ft (43 m) Designed Draft: 41-45 ft (12-14 m) 3,400-4,500 TEU Length: 951-965 ft (290-294 m) Beam: 105 ft (32 m) Designed Draft: 41 ft (12.5 m) * Most vessels that arrive at the Port of Wilmington do not arrive at designed draft 10
Turning Basin Expansion Phase One Phase one completion date of July 31, 2016 Accommodates post-panamax vessels with LOA of 1,165 ft. and breadth of 158 ft. Depending on vessel s profile, typically accommodates those in the 8,000 to 10,000 TEU range PHASE TWO An additional 35 ft. to get to 1,200 ft. 11
Port of Wilmington Infrastructure Investments Turning basin expansion phase one COMPLETED Turning basin expansion phase two UNDERWAY Berth 8 replacement project UNDERWAY Purchase 3 new ultra-panamax container cranes ORDERED 2 CRANES ARRIVE APRIL 2018 Capability to operate two post-panamax vessels simultaneously MID 2019 Container yard redesign construction UNDERWAY 12
USACE Channel Projects & Air Draft Clearance Restrictions Port Current Depth Approved Depth USACE Channel Deepening Projects Total USACE Total State Share Share Total Cost Programmed Balance to Complete Air Draft Clearance Restriction (in feet) Savannah 42 47 $1,028,730,000 $671,362,500 $357,367,500 $578,751,150 185 Boston 45 48 $656,049,000 $492,037,000 $164,012,000 $211,460,000 None Charleston 45 52 $530,000,000 $230,000,000 $300,000,000 $212,500,000 186 Wilmington 42 TBD Not identified 171 Jacksonville 40 47 Not identified None Norfolk 50 55 Not identified None THE NEW STANDARD New York 50 50 215 Miami 50 50 None *Savannah and Boston included in FY18 President's budget, Charleston had $17.5M in FY17 USACE Budget, no funds committed in FY18. 13
Neighboring Expansion Projects South Carolina Ports Authority & Georgia Ports Authority Charleston Harbor Deepening Project $213 million deal to help make the waterway the deepest on the East Coast 2 nd phase to deepen 20-mile inner harbor to 52 feet First-phase of dredging to begin this fall Completion set for 2020 Improves accessibility for supersized cargo ships visiting the Port of Charleston Savannah Harbor Expansion Project Deepen the 18.5-mile outer harbor to 49 feet Deepen the Savannah River channel to 47 feet Dredging to be completed as early as 2019 Enable the port to more efficiently serve large vessels transiting Panama Canal 14
Cape Fear River Channel Long Term Enhancement NC Ports is conducting an official Feasibility Study with U.S. Army Corps of Engineers to examine a host of navigational improvements to the channel, including deepening and widening the Cape Fear River basin Long-term viability requires channel improvements Neighboring ports well underway Air draft restriction must be resolved 15
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Transiting the CSX Rail Lines Greensboro-Randolph Megasite Kingsboro Megasite Chatham-Siler City Megasite Moncure Megasite A B Port of Wilmington CSX Rail Ramp - Charlotte Existing rail line Proposed restoration of rail line 17
Federal Grants TIGER Berth 7 Upgrade Total project cost: $30.17M, federal request: $12.07M. Notification expected early 2018. Intermodal Yard Improvements Total project cost: $22.2M, federal request: $10.4M. Notification expected early 2018. INFRA Intermodal Capabilities & Container Yard Improvements Total project cost: $100.07M, federal request: $40.63M. Notification expected early 2018. Includes available large project funds for FY17 and FY18. 18
Competing Ports Incentives Port of Virginia Port Volume Increase Tax Credit Credit is $50 per TEU or one unit of roll-on/roll-off cargo in excess of the base year cargo. International Trade Facility Tax Credit Credit is either (i) $3,500 per qualified full-time employee or (ii) an amount equal to 2% of qualified capital investment expenses made by the taxpayer. South Carolina Ports Authority International Trade Incentive Program South Carolina provides a credit against income taxes or withholding taxes to entities that use state port facilities. Georgia Ports Authority Port Tax Credit Bonus New or expanding Georgia companies that increase imports or exports through a Georgia port by at least 10% over the previous or base year. 19
Ocean Carrier Growth & Savings Opportunity Norfolk Total: 24% Asia: 25% Europe: 2% Total: 34% Asia: 25% Europe: 75% Charleston Total: 25% Asia: 26% Europe: 10% Wilmington In addition to a vast market, Port of Wilmington offers: Favorable thruput rates Available storage Flexible free time Inland favorable to major markets: Greensboro, Charlotte & Raleigh, N.C. Efficient gate & vessel productivity leads to cost savings Savannah 20
Long Term Considerations (30 years out) Rail Network and Connectivity Wilmington Rail Projects Morehead City Interstate Connectivity Interstate 74 Wilmington to Charlotte Cape Fear & Morehead City Channels MUST INCREASE RAIL USAGE Annual Operations & Maintenance Requirements Cape Fear Enhancement Projects New Container Port Location 21
Action Items Support Section 203 study Continued capital improvement investments Address power lines Study long term options for new port locations 22
Part of an Integrated Transportation Network Port of Morehead City Port of Wilmington 23
Imagine Your Future Here 24
As we get bigger, the world gets smaller. 25