1. Stewards of Tomorrow 1 THE PORT OF VIRGINIA: KEEPING VIRGINIA’S ECONOMY MOVING JOSEPH P. RUDDY CHIEF INNOVATION OFFICER MAY 19, 2016 JOSEPH P. RUDDY CHIEF INNOVATION OFFICER MAY 19, 2016

2. Stewards of Tomorrow 2 INDUSTRY HOT TOPICS/ISSUES A lack of investment Shifts in trade patterns Increasing ship sizes The ability to serve discretionary markets To remain competitive, ports have to be able to move cargo swiftly, safely, and sustainably.

3. Stewards of Tomorrow 3 MARKET SIZE/PORT POSITIONING Our location and primary market size positions us perfectly to serve the American Heartland. Source: Colliers, population categories defined by R K Johns

4. Stewards of Tomorrow 4 QUICK ACCESS BY RAIL

5. Stewards of Tomorrow 5 CY 2015 ECONOMIC DEVELOPMENT TOTALS Announcements: 35 Square Footage: 1.8 million sq. ft. Investment: Over $1.2 billion Jobs Created: 2,583

6. Stewards of Tomorrow 6 CY 2016 ECONOMIC DEVELOPMENT TOTALS

7. Stewards of Tomorrow 7 $17.5 billion in wages 374,000 employees 9.4% Va workforce 18 million tons $53.2 billion $ MADE IN 4.5 million tons $10.9 billion GSP $30.5 billion 6.9% of GSP A CATALYST FOR THE COMMONWEALTH Source: The Fiscal Year 2013 Economic Impacts of The Port of Virginia, Raymond A. Mason School of Business, William & Mary

8. Stewards of Tomorrow 8 OUR APPROACH IS WORKING Return the port to financial stability Reduce turn times/Increase velocity Reinvest in infrastructure to meet long-term needs

9. Stewards of Tomorrow 9 POV GATE TURN TIMES: FY2015 – FYTD2016 We have addressed the congestion issues of early 2015. We still have opportunities to improve our efficiency.

10. Stewards of Tomorrow 10 INVESTING FOR THE FUTURE Over $31 million invested in FY2015 Budgeting and Planning for investment of $135 million in 2016 Optimizing our landside facilities – equipment and infrastructure Ensuring our channels and berths can accommodate the larger ships

11. Stewards of Tomorrow 11 DEEPER, WIDER, SAFER. Jun 2015: Cost-Sharing Agreement Signed Dec 2015: Alternatives Milestone met Jan 2017: Selected Plan and Econ Dev Plans identified Aug 2017: Agency Decision Mar 2018: Civil Works Review Board Approval

12. Stewards of Tomorrow 12 NORFOLK INTERNATIONAL TERMINALS (NIT) 820,000 Container Capacity Served by NS 50’ depth 14 STS Cranes

13. Stewards of Tomorrow 13 NIT NORTH GATE COMPLEX

14. Stewards of Tomorrow 14

15. Stewards of Tomorrow 15 PHASE 1 NIT SOUTH CONVERSION $350 million investment Increase capacity by 400,000 containers 2017: first stacks complete 2019: all 30 stacks complete

16. Stewards of Tomorrow 16 VIRGINIA INTERNATIONAL GATEWAY 650,000 Container Capacity Served by NS and CSX 55’ depth 8 STS Cranes Phase II Increases designed capacity to 1.2 million containers Expanded Rail Operation Extended Berth 4 new STS Cranes

17. Stewards of Tomorrow 17 VIRGINIA INTERNATIONAL GATEWAY

18. Stewards of Tomorrow 18 5 YEARS NIT Phase I, VIG II projects complete Total POV capacity: 2.95 million containers Capacity to handle 36% of volume moved by rail

19. Stewards of Tomorrow 19 10 YEARS NIT II, VIG II complete Craney Island cells being built Total POV capacity: 3.5 million containers Capacity to handle 42% of volume moved by rail

20. Stewards of Tomorrow 20 20 YEARS – AND BEYOND Craney Island Phase I & II Total POV capacity: 5.5 million containers Capacity to handle 45% of volume moved by rail Craney Island capacity when complete: 2.87 million containers

21. Stewards of Tomorrow 21 THE PIECES ARE IN PLACE Strategic location Water depth Lack of height restrictions Rail & road infrastructure Plan for capacity and throughput

22. Stewards of Tomorrow 22 WE ARE VIRGINIA’S GLOBAL GATEWAY.

23. Stewards of Tomorrow 23 Thank you ACCESSIBILITY FORTITUDE HELPFULNESS INNOVATION MINDFULNESS SUSTAINABILITY