1. James M. Dwyer, Maryland Port Administration National Maritime Strategy Roundtable Global Competitiveness Port’s Challenge May 16, 2016

2. 2 Contents: 1.Port Background 2.Port’s Challenges National Maritime Strategy Roundtable Port’s Perspective:

3. Waterborne transportation has always been an efficient and practical way to move goods, both international and domestic. Baltimore 1931

4. In the past 2,000 years, there have been three paradigm shifts in ship design and maritime cargo movement: 4 1. 2. 3.

5. In the past 2,000 years, there have been three paradigm shifts in ship design and cargo movement. 1.Mechanical Propulsion - early 1800s (Ships could keep to a schedule.) 5

6. In the past 2,000 years, there have been three paradigm shifts in ship design and cargo movement. 1.Mechanical Propulsion - early 1800s 2.Steel shipbuilding - late 1800s (Ships are much larger and deeper.) Graphic Courtesy of NOAA, Illustration by Lili Robins 6

7. In the past 2,000 years, there have been three paradigm shifts in ship design and cargo movement. 1.Mechanical Propulsion - early 1800s 2.Steel shipbuilding - late 1800s 3.Containerized cargo – 1956 (Much larger terminals needed.) Graphic Courtesy of NOAA, Illustration by Lili Robins 7

8. Before containerization…14 guys on one small pallet. 8

9. 9 Before containerization…you did not need a gym membership.

10. The Port of Baltimore is a complex mix of Private and Public terminals….handling diverse bulk & general cargoes. Baltimore Coal Salt & Fertilizers Sugar Autos Forest Products Containers Farming Mining Construction Forest Products Containers 10

11. International trade has increased, facilitating globalization. Domestic waterborne tonnage remains steady. Tons, (millions) Baltimore’s Waterborne Cargoes 11

12. 4.4 0.03 2.8 0.6 4.6 2.3 9.8 0.13 5.6 0.2 1.6 0.2 12.6 0.16 6.27 0.8 10.0 2.5 POB Tons (Millions) Imports = Red (14.75m Tons) Exports = Blue (17.65m Tons) 12 The Port has global reach, connecting many Mid-Atlantic suppliers and markets worldwide. POB’s International Cargo in 2015 was 32.4 Million Tons.

13. Port of Baltimore Foreign Cargo & MPA General Cargo, 2004 – 2015 13 The Port of Baltimore’s foreign tonnage has recovered from the economic recession. Tons (Millions)

14. 14 Types of MPA Cargo

15. Global competitiveness: Exporting USA manufactured autos. In 2013, auto manufacturers exported over 252,000 cars from the Port of Baltimore: In addition, another 100,000 previously owned vehicles (used) vehicles were exported in 2013. Ford Chrysler GM Honda Toyota Subaru Mitsubishi 15

16. Panama Canal 1914Panama Canal Today 16

17. The new Panamax ships can carry three times the number of containers. 12,500 vs. 4,500 TEUs 17

18. Port of Baltimore remains healthy, and is a nationally significant port. (2015 Data)  Ranks #1 in Autos and Light Trucks.  Ranks #1 in Roll-on Roll-off Heavy Equipment.  Ranks #1 in imported: Sugar, Aluminum and Gypsum.  Ranks #2 in exported Coal.  Ranks #2 in imported Salt.  Ranks #9 in the U.S. in the value of foreign cargo.  Ranks #13 in the U.S. in foreign cargo tonnage. 18 The Port generates over 33,900 jobs: 13,650 direct, 15,890 induced, 4,380 indirect jobs, $2.9 billion in wages and salaries annually, and $310 million in state and local tax revenues annually.

19. 19 Challenges: 1.Security 2.Ageing Port Facilities 3.Maintaining Channels and Waterways 4.Inland transportation infrastructure (RR, Hwy, Bridges) 5.Zoning, Community, Environmental Issues 6.Climate Change Port Challenges:

20. 1. Port Challenges: Security 20 Before 9/11/2001…fences kept cargo in After 9/11/20021…prevent unauthorized entry Eternal vigilance is the price of security.

21. 2. Port Challenges: Ageing Port Facilities 21 Maintenance is constant due to the harsh marine environment and evolving customer requirements.

22. 3. Port Challenges: Maintaining Clear Channels Being the western most Mid-Atlantic port has inland advantages, but it also requires lots of dredging…and construction of placement sites.

23. 4. Port Challenges: Inland Transportation Infrastructure - Railroads, Highways & Bridges 23 Built in 1895, the Howard St. Tunnel is a CSX bottleneck. Highway access and congestion management are key to efficient inland logistics. Many bridges on the Interstate Highway system need repair.

24. 24 5. Port Challenges: Zoning, Community, Freight Routes, Environmental Issues… Ports must maintain a “Social License to Operate” by being a good neighbor….which can be challenging. 8.5’ New condominium adjacent to rail. Grain elevator converted to apartments.

25. 25 5. Port Challenges: Zoning, Community, Freight Routes, Environmental Issues Under Armor’s headquarters is between two marine terminals. Domino Sugar Westway Molasses

26. 6.Port Challenges: Climate Change Terminal freeboard is 8’ to 10’. Sea Level Change: +1.0’ past 100 years +1.4’ by 2050 +3.7’ by 2100.

27. 6. Port Challenges: Climate Change Hurricane Isabel, Sept. 2003 +8’ storm surge - matched deck height of MPA’s berths.

28. Port of Baltimore Bottom line: 1. The Port links the Mid-Atlantic region to the global marketplace. 2. With over 300 years of longevity, the Port’s cargo and cruise forecasts are positive. 3. The Port is an economic engine with a long record of sustaining jobs in Maryland for all skill levels. 4. Average income for a Port direct job is $61,877; this is 16% better than the average Maryland salary. 28

29. Thank You James M. Dwyer Maryland Port Administration Planning jdwyer@MarylandPorts.com (410) 385-4469 29