1. THE PORT OF VIRGINIA: A CATALYST FOR COMMERCE ANDREW M. SINCLAIR
DIRECTOR, FEDERAL GOVERNMENT AFFAIRS
September 21, 2016

2. POV LEADERSHIP Virginia Port Authority Board of Commissioners
John G. Milliken, Chairman
John N. Pullen, Vice Chairman
Jennifer D. Aument
Val S. McWhorter
J. William Cofer
Faith B. Power
Alan A. Diamonstein
Kim Scheeler
Daniel C. Gundersen
Deborah C. Waters
Gary T. McCollum
F. Blair Wimbush
Manju S. Ganeriwala, State Treasurer
The Port of Virginia Senior Leadership Team
John Reinhart, CEO/Executive Director
James S Bibbs, CHRO
James W. Noel, III, General Counsel
Tom D. Capozzi, CSO
Rodney W. Oliver, CFO
Cathie J. Vick, CPAO
Joseph Ruddy, CINO
Shawn Tibbetts, COO

3. OUR TERMINALS VIRGINIA INLAND PORT RICHMOND MARINE TERMINAL
NEWPORT NEWS MARINE TERMINAL
VIRGINIA INTERNATIONAL GATEWAY
NORFOLK INTERNATIONAL TERMINALS
PORTSMOUTH MARINE TERMINAL

4. HOW WE MOVED THE CARGO: FY 2016
2.57 million 20-Foot Equivalent Units (TEUs)
2.5% growth over FY 2015
35%
62% 3%
+ 15.8%
+-1.4%
+ 9.7%
Even though motor carrier volume was down, we still moved more than 900,000 TEUs via truck -

5. RECORD-SETTING VOLUMES

6. WE ARE A CATALYST FOR COMMERCE.

7. FY 2013 ECONOMIC IMPACTS OF VIRGINIA’S MARITIME INDUSTRY
79,000,000
530,800
TONS OF CARGO MOVED
JOBS IN VIRGINIA
$88.4 BILLION
10.1%
IN SPENDING
OF VA GSP
Source: Economic Impacts of Virginia’s Maritime Industry, 2013, Raymond A. Mason School of Business, William & Mary

8. CY 2016 ECONOMIC DEVELOPMENT TOTALS
31 Business Announcements
New
Expansion
as of 8/29/16
CY 16 Announcements include:
Announcement Date: Company: Location: New/Expansion Sq. Ft. $$$ Jobs
Jan Starsprings Henry County new 50, ,700,000 68
Jan-16 Euro-Composites Culpeper County expansion 50, ,500,000 58
Jan-16 Kingspan Frederick County expansion ,000,000 15
Jan-16 Printpack Newport News expansion ,700,000 50
Jan-16 Arkay Packaging Corporation Botetourt County expansion ,000,000 50
Feb-16 Polykon Manufacturing LLC Henrico County new 870, ,000,000 50
Feb-16 Emser Tile Suffolk new 400, ,500,000 98
Feb-16 Somic America, Inc Wythe County expansion 50, ,225,000 15
Feb-16 Target Suffolk expansion
Feb-16 DB Schenker Chesapeake expansion
Feb-16 Graphic Packaging Intl Staunton expansion ,000,000 43
Mar-16 Eldor Corporation Botetourt County new ,000,
Mar-16 Service Center Metals Prince George County expansion 190, ,000,000 35
Mar-16 Deschutes Brewery Roanoke County new ,000,
Apr-16 Drake Extrusion, Inc. Henry County expansion ,000,000 30
May-16 Innovative Refrigeration Sys Augusta County expansion ,600,
May-16 Ballast Point Brewing&Spirits Botetourt County new 259, ,800,
May-16 Fiat Chrysler Automotive Winchester new 400, ,200,000 70
Jun-16 Gerdau Ameristeel Dinwiddie County expansion ,500,000
Jun-16 Abbott Laboratories Campbell County expansion ,000,000 56
Jun-16 Five Grapes Dispensing Loudoun County new ,
Jun-16 Specialty Coating & Laminating Hanover expansion ,500,000 52
Jun-16 R1 International Richmond expansion ,000,000 15
Jun-16 Hudson Industries Henrico County expansion ,000 87
Jun-16 TRW Automotive Smyth County expansion ,000,000 60
Jul-16 SANJO Corte Fino Virginia Beach new 300, ,500,000 85
Jul-16 Solid Stone Fabrics Henry County expansion ,500,000 22
Aug-16 Dollar Tree Chesapeake expansion ,000,
Aug-16 Toray Plastics Warren County expansion ,000,000 30
Aug-16 ALDI Dinwiddie County new ,000,
Aug-16 Speyside Bourbon Bath County new ,000,000 30

9. CY 2016 ECONOMIC DEVELOPMENT TOTALS
Developed more than 2.5 million sq. ft. of space
Invested more than $725 million
Created 3,265 jobs
Announcements include:
Interchange: $11 million spec warehouse investment in Portsmouth. 200K sq ft. 28 docks, 2 drive-ins, 20 trailer dolly pad.
Cost Plus: Cost Plus World Market’s Virginia Distribution Center, located in Windsor, Virginia, recently completed some substantial upgrades to its 1.1 million square-foot facility, which include: expanding the climate-controlled chocolate room and installing a new sorting and racking system to improve operational efficiencies.
Newell Rubbermaid: Newell Rubbermaid, a manufacturer of outdoor storage, outdoor living and home organization products, as well as insulated water coolers and ice chests, invested $18 million to expand its operation in Frederick County.
Ashley Furniture: Ashley Furniture Industries Inc. plans to create 454 new jobs in Davie County, NC during the next five years and invest at least $8.7 million at the current site through the end of
Trex: Trex Company (NYSE: TREX), the world’s largest manufacturer of high-performance wood-alternative decking and railing, has invested $12.3 million in the City of Winchester and $3.1 million in Frederick County to expand its manufacturing operations.

10. ECONOMIC DEVELOPMENT OBJECTIVE
Grow port-related economic development activity within primary and discretionary markets over the next five years.

11. INDUSTRY ISSUES Infrastructure (land & water) Shifts in trade patterns
Increasing ship sizes
Discretionary market services
Politically safe business locations
To remain competitive, ports have to be able to move cargo swiftly, safely, and sustainably – inside AND outside the gates.

12. INVESTING IN THE FUTURE

14. ON-TERMINAL INFRASTRUCTURE PROJECTS

15. NIT NORTH GATE EXPANSION
26 new truck gates
Ties into new I-564 connector
$31 million investment
June 2017 completion

16. NIT SOUTH EXPANSION
Increase designed capacity by 400,000 containers (46%)
2017: first stacks complete
2019: all 30 stacks complete
$350 million investment

17. POTENTIAL ECONOMIC IMPACT OF NIT SOUTH IMPROVEMENTS
$100,000,000
120,000
ANNUAL REVENUE
JOBS ACROSS VIRGINIA
$16 BILLION
$462 MILLION
IN SPENDING
STATE AND LOCAL TAXES
Source: Economic Impacts of Virginia’s Maritime Industry, 2013, Raymond A. Mason School of Business, William & Mary

18. ADDITIONAL INVESTMENTS
RMT: rail track enhancement and terminal upgrades
VIP: Expanded rail capacity
PMT: Wharf and Rail Loop
NNMT: new equipment, warehouse improvements, berth dredging

19. 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

20. OUTSIDE THE GATES

21. OVER $4 BILLION BEING INVESTED
In addition to the named projects below, Virginia was also funded $165 million via FASTLANE for the $1.4 billion Atlantic Gateway Project.
I-564 Intermodal Connector
Locality - Norfolk
Investment - $175,600,000
Completion Date- December 2018
Comments- Provides a new direct interstate
connection to NIT North and Norfolk Naval Station
Interstate 64 Widening (Phase 1-2)
Locality - Newport News/Williamsburg
Investment - $313,000,000
Completion Date- Summer 2019
Comments- Interstate 64 is being widened from four lanes to 8 lanes. Phase 1 is from Jefferson Avenue (exit 255) to Rte 238 and Phase 2 is from Rte 238 (exit 247) to Rte 199 (exit 242). The additional through lanes will be constructed to the inside of existing I-64 in both directions
Military Highway Continuous Flow Intersection
Locality – Norfolk
Investment –$59,800,000
Completion Date- 2018
Comments- Will combine the addition of new lanes, new signals and new traffic management technology to increase capacity and improve safety along this important corridor in Norfolk. Widening of Military Highway from a four-lane roadway to an eight-lane divided roadway from Lowery Road to Broad Creek
Air Terminal Interchange Project
Investment - TBD
Completion Date- TBD
Comments- Provide the military with improved methods of mobilizing people and goods, help alleviate existing congestion, improve the level of service on city and Naval Station streets and improves NIT access to future Third Crossing
I-64/I-264 Ramp Improvements
Locality - Norfolk/Virginia Beach
Investment – $157,000,000
Completion Date- 2019
Comments- Ramp widening, new collector-distributor road
Elizabeth River Tunnels Project
Locality - Norfolk/Portsmouth
Investment - $2,100,000,000
Comments- Additional Mid-Town Tunnel, rehab of existing Downtown Tunnel and Mid-Town Tunnel
I-264/Witchduck Interchange and Ramp Extension
Investment –$191,000,000
Comments- Extending collector-distributor road, new interchanges
Suffolk Grade Separation Nansemond Parkway – APPLICATION PENDING
Locality - Suffolk
Investment –$1,500,000
Planned Completion Date- Fall 2017 (Fast Lane Grant application pending)
Comments- Part 2 of the Fast Lane Grant
On the Horizon
State Rt. 164 Widening
VIP Grade Separation
High Rise Bridge Phased Construction
Hampton Roads Harbor Crossing (Phase 1)
U.S. Route 460/58/13 Connector
Terminal Boulevard Grade Separation
Interstate 87

22. SHIFTING TRADE TRENDS

23. SHIFTING TRADE TRENDS

25. BOXSHIP EVOLUTION:
1996
REGINA MAERSK
7,400 TEU

26. BOXSHIP EVOLUTION:
2016
CMA CGM BENJAMIN FRANKLIN
18,000 TEU

27. A NEW EAST COAST ERA HAS BEGUN
JULY 10, 2016
MOL BENEFACTOR
10,000 TEU

28. GETTING BIG SHIP READY
The 300-foot Great Lakes Dredge and Dock dredge Alaska, left, and spider barge work together to deepen the shipping channel to the port of Savannah off the coast of Tybee Island, Ga., Monday, Sept. 14, The U.S. Army Corps of Engineers and the Georgia Ports Authority started the dredging the channel five days ago. The $706 million project, first authorized by Congress in 1999, will deepen the shipping channel traveled by cargo ships along 39 miles of the Savannah River.

29. GETTING BIG SHIP READY

30. 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
Here are some milestone dates on the status and way ahead for the General Reevaluation Reports for the 45/55 studies.
15 June 2015: Federal Cost Sharing Agreement signed by Port ED and Norfolk District Commander (kicked off reevaluation of Norfolk Harbor and Elizabeth River Southern Branch deepening) MET
16 December 2015: Alternatives Milestone (team concurrence on array of alternatives) MET
~~~~~~~~~~~~
15 January 2017: Tentatively Selected Plan and National Economic Development Plans identified
1 August 2017: Agency Decision Milestone (formal endorsement of recommended plan and beginning of approval process)
1 March 2018: Civil Works Review Board approval
1 June 2018: Chief’s Report issued (after which the project is ready to begin)
In addition, Senior Management Meetings will occur every 2-3 months between Port and Norfolk District leadership

31. SERVING THE INLAND MARKETS

32. 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
The Port of Virginia’s market reach is competitive in size to NY/NJ & Savannah: All three ports able to serve a market potential of +50 million people.
Primary: population proximate enough where the port is the preferred or exclusive gateway (based on inland distances)
Secondary: the discretionary population in areas that overlap in regards to the opportunity to be served by competing ports
Population figures include 16 states (AL, CT, DC, FL, GA, KY, MD, NC, NJ, NY, OH, PA, SC, TN, VA, WV)

33. QUICK ACCESS BY RAIL
NORFOLK Southern invested in the Heartland Corridor in 2010 which gave us double stack access and quicker route to Chicago and the Ohio Valley.   CSX is investing in National Gateway, which should open up double stack access sometime in late 2016.

34. DOUBLE STACK TO THE MIDWEST
Norfolk Southern
CSX
NS HEARTLAND CORRIDOR ON LEFT
CSX VIRGINIA AVENUE TUNNEL PROJECT ON RIGHT

35. MEETING THE NEEDS OF GLOBAL COMMERCE

36. ICE CERTIFICATION

37. PROPOSED FTZ EXPANSION
Combined with Richmond/Petersburg’s FTZ (#207), and we’ve got an enormous opportunity from Capitol to Coast to attract business.

38. POSITIONING VIRGINIA AS A FIRST IN, LAST OUT DESTINATION

39. WE HAVE A CLEAR PATH FORWARD.

40. 5 YEARS NIT Phase I, VIG II projects complete
Total POV capacity: >2.6 million containers
Capacity to handle 40% of volume moved by rail

41. 10 YEARS NIT II, VIG II complete Craney Island cells being built
Total POV capacity: >3 million containers
Capacity to handle 42% of volume moved by rail

42. 20 YEARS – AND BEYOND Craney Island Phase I & II
Total POV capacity: million containers
Capacity to handle 45% of volume moved by rail
Craney Island capacity when complete: million containers

43. THE PIECES ARE IN PLACE Strategic location Water depth
Lack of height restrictions
Plan for capacity and throughput
Rail & road infrastructure
Business-friendly (ICE, FTZ, Politically)
First In, Last Out Ready

44. WE ARE VIRGINIA’S GLOBAL GATEWAY.

45. ACCESSIBILITY
FORTITUDE
HELPFULNESS
INNOVATION
MINDFULNESS
SUSTAINABILITY