1. Planning for the Panama Canal Expansion – A Port Perspective Richard Wainio Port Director and Chief Executive Tampa Port Authority October 21, 2009

2. Tampa Overview  Florida’s largest port in tonnage and area  Diverse traffic base  Major cruise home port  Expanding container gateway

3. Port of Tampa Perspective - Summary   Immediate priority – capturing larger share of huge local market   Panama Canal expansion one of several variables impacting growth forecast   Prudent/incremental approach to facilities expansion as business develops

4. Tampa Bay Market Geographic center of state Geographic center of state 5,742 square miles 5,742 square miles 8 million people within 100 miles 8 million people within 100 miles Expanding distribution center gateway Expanding distribution center gateway Current local market potential= + 400K TEUs Current local market potential= + 400K TEUs 1.9 Million Labor Force 1.9 Million Labor Force

5. Central Florida Container Market Tampa Direct 350K TEUS Transload 50K TEUS Total (est.): 400K TEUS Direct 350K TEUS Transload 50K TEUS Total (est.): 400K TEUS Port Share

6. Expanding Distribution Center Gateway Companies such as Rooms to Go, Southern Wines & Spirits, Lowes, Wal-Mart, Havertys, Pepsico, Bealls, United Natural Foods, Kane’s Furniture, VF Image Wear, Ace Hardware, SYSCO/International Food Group, Corvest, Publix, and Perry Ellis are among firms that have recently constructed and/or expanded distribution centers in the region. CSX is planning to develop an Integrated Logistics Center at Winter Haven in Polk County – 50 miles due east of the Port of Tampa. Phase I will include a 300 acre container and vehicle rail terminal and Phase II, a 950 acre distribution center park. Key to the Port of Tampa’s container growth has been the Executive Shippers’ Council representing over 140 importers and exporters within 100 miles who control over 250,000 TEUs and are keen to support container carriers that call Tampa direct.

7. The Gulf Coast is becoming an increasingly attractive market Expanding vessel capacity provides opportunity for carriers to add new services and serve distinct complementary markets in US Gulf Expanding vessel capacity provides opportunity for carriers to add new services and serve distinct complementary markets in US Gulf Major investments in port capacity and distribution centers is increasing the Gulf Coast’s attractiveness Major investments in port capacity and distribution centers is increasing the Gulf Coast’s attractiveness Tampa: major expansion capability and growing DC industryTampa: major expansion capability and growing DC industry Houston: Bayport expansion doubling capacity and growing DCHouston: Bayport expansion doubling capacity and growing DC industry Mobile: container terminal expansion and auto industryMobile: container terminal expansion and auto industry Louisiana: four proposed container terminal projects under considerationLouisiana: four proposed container terminal projects under consideration

8. Panama Canal Expansion

9. Canal Expansion Implications  Potential shift of up to 25% of West Coast cargo to East/Gulf Coast ports  New post-Panamax direct services combined with expanded Caribbean transshipment will create opportunities for both regional and intermodal ports  Market opportunities vary by region and state  Not all ports need to be deepened to 45’ or 50’ to benefit; nor will all ports gain significant new business.

10. System Encourages “Keeping up with the Joneses” Behavior – But at What Cost?   If my neighbor is dredging to 45-50’ feet – I must do the same   Lobby for USACE authorization – Just in case we may need it down the road   Is this the most efficient use of resources? - How many deep water ports do we need?   More than just dredging costs – also access infrastructure (road, rail, tunnel, etc.)

11. P. CABELLO P. of SPAIN RIO HAINA SAN JUAN CAUCEDO Caribbean Transshipment Triangle FREEPORT COLON/MIT KINGSTON CARTAGENA

12. Shipping and Trade Developments   Economic downturn and gradual recovery in world trade   Ocean carrier overcapacity – benefits all-water route   Larger vessels – deeper ports – load centers – transshipment   All-water East/Gulf Coast vs. West Coast Intermodal   Concerns with West Coast productivity and new fees   Shipper port diversification strategies and growth in East/Gulf Coast distribution center capacity   Concerns about port/transportation infrastructure capacity deficit overstated

13. Many Variables Cloud the Forecast   Ocean carrier service deployment strategies – all-water direct vs. Caribbean transshipment   Logistics & supply chain strategies - large import DCs vs. regional DCs close to population centers   Fuel prices   Ocean carrier pricing strategies   Truck & rail service patterns

14. What’s Tampa Doing to Prepare?  Identifying the real market opportunities and recognizing the limitations.  Expanding container terminal capacity – phased expansion in line with market growth  Improving truck access to Interstate highway system – I-4 Crosstown connector underway  Improving rail access  addition of on-dock rail in future phases of terminal expansion  CSX Winterhaven Integrated Logistics Center

15. Container Terminal Expansion Phased incremental approach as volumes grow and business case dictates Served by a 43 feet deepwater channel, 2100 feet of berth and three gantry cranes, and 100 ton mobile harbor crane Expansion now underway to increase from today’s 25 acres to 40 acres by end of 2009 Phased expansions to 160 acres and 2700 feet of berth over next 3-5 years

16. I-4/Crosstown Connector

17. Tampa added to Horizon Line’s Puerto Rico service Other North-South trade potential including Cuba Opportunities from Canal Expansion but Latin America Remains key to Florida/Tampa

18. Shifting International Trade Routes Conference January 26-27, 2010 Grand Hyatt Tampa Bay  Co-sponsored by AAPA & MARAD and hosted by Tampa Port Authority  Alberto Aleman, Administrator of the Panama Canal Authority will provide an update on the status of the Canal expansion  Speakers will address the international economic outlook and shifts in global trade patterns; examine the role of transshipment and the Caribbean Basin; and discuss infrastructure needs from the perspective of cargo owners, ocean carriers, ports, terminal operators, warehouse and distribution centers, and highway and rail interests.  Speakers will address the international economic outlook and shifts in global trade patterns; examine the role of transshipment and the Caribbean Basin; and discuss infrastructure needs from the perspective of cargo owners, ocean carriers, ports, terminal operators, warehouse and distribution centers, and highway and rail interests.  For more info visit: http://aapa.files.cms-plus.com/PDFs/09_ShiftingTradeRoutes.pdf