Introduction Package Macalloy and Laurel Island - Charleston, South Carolina USA
Shipyard Creek Ocean Terminal Offering Package Table of contents Project overview Key project milestones The business case The project Development partners and contacts Next steps Disclaimer 1
Shipyard Creek Ocean Terminals, Charleston, SC USA Macalloy Laurel Island 2
Shipyard Creek Ocean Terminals Overview Shipyard Creek Ocean Terminals (SCOT) presents an unprecedented US opportunity for private infrastructure investment and terminal operating interests. For the past 3 years, efforts have been underway to create modern, privately developed maritime terminals at Laurel Island and nearby Macalloy in Charleston, South Carolina. These independent terminals are designed to complement the South Carolina port system, including the future Navy Base Terminal to be developed and operated by the SC State Port Authority (SCSPA ). The combined projects are intended to help restore Charleston s historic position as a dominant maritime destination by taking advantage of its natural deep water, its superior access to the open ocean, its dual rail connection and its reputation for service excellence. The SCOT land assets and port entitlements are 100% privately owned. The project sponsors enjoy the latitude to maintain the project s privately-held status or to seek public partnership in a P3 fashion. SCOT includes two separate marine components, both in advanced stages of pre-development. The Laurel Island terminal has been designed as a modern terminal to handle a variety of maritime uses. Vessel maneuverability tests conducted by Charleston harbor pilots have confirmed Laurel Island s engineering design for accommodating Cape sized- bulk vessels, or in the future, up to 1,000 feet long ships alongside a 3,200 berth. On-dock rail capacity will allow for connectivity to both NS and CSX rail systems. The site will be engineered and permitted initially as a multi-use terminal, combining various marine elements together to address current and anticipated demand. 3
Shipyard Creek Ocean Terminals Overview (cont d) The Macalloy terminal is located approximately ½ mile from Laurel Island and is primarily envisioned as a mixed-use terminal for break-bulk, RO/RO, general cargo or raw material applications. Macalloy itself will accommodate vessel lengths of up to 650 with initial minimum draft of 38 (likely expandable to 42 +). Jones Lang LaSalle is acting as development and investment advisor to the shareholders of Shipyard Creek Ocean Terminals. As a part of this function, JLL invites world leaders in the fields of infrastructure investment, terminal operations, and marine development to express interest and input relative to the operations or investment in the Macalloy or Laurel Island terminals, either individually or collectively. Wide flexibility exists to discuss traditional concession structures, JV partnerships or other financial models which could meet the mutual objectives of the parties. The pages which follow are intended to highlight the project timeline, economic drivers, and physical attributes of the project in total, all intended to initiate dialogue with qualified parties on how best to utilize these exceptional on-water assets. 4
Shipyard Creek Ocean Terminals Key project milestones 2005-07 Laurel Island and Macalloy sites acquired by a private investment consortium 2007 - Shipyard Creek, LLC established by ownership of Macalloy and Laurel Island assets to carry forward a private maritime development scheme. 2010 - Charleston County passes resolution supporting development of rail and ocean terminal project on Shipyard Creek land holdings 2010 - Towns of Mount Pleasant and North Charleston, SC announce their support of project August, 2010 SCPA and Coastal Conservation League settle lawsuit over Port Access Road Environmental Impact Statement, pledging its commitment to support a third party, regional rail intermodal solution September, 2010 - Shipyard Creek, LLC signs Memorandum of Understanding with CSX Railways and City of North Charleston, outlining development of intermodal rail park at Shipyard Creek Ocean Terminals December 2010 - CSX Railways announces it has agreed to build trains in the new rail yard for Norfolk Southern Railways, allowing NS to use the CSX lines at same cost, resulting in a dual access rail intermodal solution at Shipyard Creek Ocean Terminals. January 2011 - Shipyard Creek Ocean Terminals appoints Jones Lang LaSalle to spearhead promotion and attraction of interest to Shipyard Creek Ocean Terminals. February 2011 City of Charleston acknowledges support of project by approving re-zoning of land to Heavy Port use classification. September, 2012 - Preliminary discussions initiated with SCSPA to review mutual objectives of Navy Base and Laurel Island Terminal projects November, 2012 Determination of required environmental and geo-tech approach, accelerating SCOT development timeline by 1824 months. November 2012 Computer sim study conducted, by independent Charleston Harbor Pilots, validating Laurel Island and Macalloy design engineering and vessel capacity. Q1 2013 Geo tech site work to commence 2014 projected completion of Macalloy terminal site; 2018, targeted opening of Laurel Island operations 5
Port of Charleston 6
Shipyard Creek Ocean Terminals New market shift for North American ports After years of dominating North American maritime trades, U.S. West Coast ports are threatened.. Converging economic forces now favor growth of the gulf and east coast ports for Asian trade to the Midwest. Source: Drewery Consultants 7
Shipyard Creek Ocean Terminals Charleston Harbor Terminals 3 1. Macalloy 2. Laurel Island 3. North Charleston Terminal 4. Veterans Terminal 5. Proposed Navy Base Container Terminal 6. Columbus Street Terminal 7. Wando Welch Terminal 4 1 5 2 7 6 8
Charleston Ports Today Charleston offers one of the greatest natural harbors on the U.S. Eastern seaboard. Within the Charleston system, Shipyard Creek Ocean Terminals represents the most optimum of maritime locations, less than 2 miles from the sea buoy, with the ability to provide direct access to both rail and roadway arteries, providing superior through-put options for containers and other forms of marine cargo. 9
Charleston Harbor General Specs Channel Depth (mean low water): --Entrance Channel 47 ft (14.3m) --Harbor channel and dockside 45 ft (13.7m) --Soft mud bottom. Channel Width: Minimum 500 feet (152m). Maximum 1,000 feet (304.8m). Tidal Currents: Average 1.5 knots. Bridges: Lower Cooper River Bridge - Air draft 186 ft (56.6m) MHW Upper Cooper River Bridge (No. Charleston Terminal Only) Air draft 150 ft (45.7m) MHW Charts: NOAA 11524 and 11526. Pilotage: Required. Charleston Branch Pilot's Association. Regulations: US Cost Guard regulations apply. Tug and Tow: Available 24-hours-a-day. 10
Shipyard Creek Ocean Terminals Charleston Ports Today Distance to Sea Buoy Port of Wilmington, NC Jacksonville Port of Savannah Southeast Port Approaches Shipyard Creek Ocean Terminals Mileage 11 miles 9 miles 21 miles 2 miles! The Port of Charleston has the shortest distance to the Sea Buoy of any harbor on the U.S. east coast. Shipyard Creek Ocean Terminals will be among the closest of all Charleston terminals 11
Regional Position Projected US Population Increases to 2030 Source: US Census Judson Drennan / The News & Observer 12
Market assessment of future freight volumes The Port of Charleston s traditional 3 state freight delivery area has expanded to servicing major consumption zones throughout entire U.S. southeast Source: NS Railroad & Port of Savannah data 13
The Project 14
Shipyard Creek Ocean Terminals Laurel Island & Columbus Street terminal vicinity plan Laurel Island 15
Laurel Island Design Specs Overall Land Area: 160 acres Permitting underway for dredging to 47.5 Note: Town Creek Upper Channel is channel is selfflushing Berth Length : 3,200 feet Rail Access: On-dock rail with dual service via CSX Railways and Norfolk Southern 16
Shipyard Creek Ocean Terminals - Macalloy Macalloy Intermodal Terminal and Breakbulk park Direct Transfer 17
Shipyard Creek Ocean Terminals Preliminary Project specs Macalloy Overall Land Area: 115 acres (92 acres highland); potentially expandable to 150 acres Berth Length : 650 vessel capacity; potential to accommodate second vessel by rafting Depth at waterfront: 38 with ability to dredge to 42 Encouraged uses: o Cold supply chain o Break-bulk o Automobile RO/RO o Equipment o Barge terminal o Manufacturing o Bunkering o Chassis/empty container depot Rail Intermodal: CSX Railways. Direct access to main north-south line; NS capability Rail and road connectivity to Laurel Island Direct access to neighboring SCPA Navy Yard via High, Wide and Heavy corridor 18
Vessel simulator testing conducted November, 2012 Confirming ability to berth up to 650 breakbulk vessel at Macalloy
Rail connectivity CSX and Norfolk Southern 20
Rail ingress/egress to Shipyard Creek Ocean Terminals 21
Strategic partners and contacts 22
Shipyard Creek Ocean Terminals Strategic Partners Design Engineering: Moffatt and Nichol Intermodal : HDR Engineering Supply Chain and Logistics Modeling: Vickerman & Associates Civil Engineering: Davis and Floyd Soils Engineering: S & ME Legal Services: Morris, Manning and Martin Financial Services: Jones Lang LaSalle 23
For further information: Steve Grable Contact Steve Grable 3344 Peachtree Road NE Suite 1200 Atlanta, GA 30326 + 1 404 995 2455 steve.grable@am.jll.com Jones Lang LaSalle Brokerage, Inc. License # 01856260 Jones Lang LaSalle Americas, Inc. License # 01223413 2014 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof. 24
Disclaimer Jones Lang LaSalle ( JLL ), has been authorized by Shipyard Creek, LLC ( Owner ) to present certain information concerning the proposed development of the Shipyard Creek Ocean Terminal in the Macalloy and Laurel Island, South Carolina USA. The information contained herein is to be treated in confidence and is intended solely for the limited use and benefit in familiarizing the reader with the facts concerning the proposed development project, (the Project ). Prior to submitting any expression of interest, parties should perform and rely upon their own investigations, analyses, estimates and projections and otherwise satisfy any concerns regarding material aspects of the material contained herein, including but not limited to, legal, municipal, environmental, operational, seismic, financial and physical issues, and all other matters affecting or pertaining to the Project. No person is authorized to make any representations or warranties on behalf of the Owner regarding the Project. Any and all information regarding the Project provided to any interested party by the Owner or JLL, including all information contained in this Information Package, is provided without any representation or assurance, express or implied, regarding the accuracy, completeness or current status of applicability of such information. Any interested party is expected to undertake such reviews and investigations and make such inquiries as such party may believe to be necessary, appropriate or advisable for the purpose of forming a decision to make an offer to acquire the property All interest in the Project shall be communicated to the Owner through written correspondence to JLL representatives as referenced in this Information Package. Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interests or offers to purchase the Project and/or terminate discussions with an entity at any time with or without notice which may arise as a result of review of this Memorandum. Seller shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Project unless and until written agreement(s) for the purpose of the Project have been fully executed, delivered and approved by Owner, and any conditions to the Owner s obligations therein have been satisfied or waived. The material contained herein is confidential and is presented strictly as information for the exclusive use of the reader. Receipt and review of this Information Package by the recipient constitutes an agreement not to divulge, share or distribute the information to any other party, except the party s legal counsel or financial advisors without specific written authorization of the Seller or JLL. This Information Package is provided subject to errors, changes, omissions, changes in price, market and other conditions. It contains selected information pertaining to the Property and does not purport to be all-inclusive or to contain all of the information that interested parties may desire. 25