MEDA Summer Conference 2015 - Port of Baltimore

The Port of Baltimore a business attraction.

1. The Port of Baltimore A Business Attraction

2. 2015 MPA Intermodal / Trade Development Presentation Discussion Topics Port of Baltimore / Strategic Commodities / Impact Changing Dynamics of Container Industry Baltimore’s Capabilities / Positioning Current Services

3. PORT OF BALTIMORE

4. MPA Intermodal / Trade Development Presentation - 2015 The Port has over 45 miles of waterfront facilities and industries. There are approximately three (3) dozen private facilities in the Port that handle nearly all the bulk commodities, plus shipyards, chandlers, etc. MPA’s six public cargo terminals handle over 90% of the general cargo. The Port is a complex and healthy mix of Private, Federal, State and Local agencies and facilities. MPA is Part of a Larger Port of Baltimore Community Private Terminals Public (MPA) Terminals

5. MPA Intermodal / Trade Development Presentation - 2015 The Port of Baltimore is a key economic engine which generates jobs and revenue for Maryland. It is responsible for: 14,630 direct jobs 25,410 additional induced and indirect jobs $3.0 billion in salaries $1.7 billion in business revenues $1.0 billion in local purchases $304 million in State and Local taxes Among U.S. Port Districts, the POB is ranked 9 th for dollar value of total foreign cargo and 13 th for foreign cargo tonnage. #1 in the nation for Auto & RoRo , sugar, exported coal, other bulk commodities. Economic Impacts of the Port of Baltimore

6. Although the POB is not a single employer, it would rank # 9 (above Aberdeen Proving Ground) as a top employer in Maryland. 6 Port of Baltimore (14,630 jobs)

7. MPA Strategic Plan MPA is guided by our Strategic Plan developed in 1996 and revised in 2008 The plan identifies commodities that the MPA has a competitive advantage in: Containers Autos Roll On / Roll Off Equipment Imported Forest Products (Paper and Pulp) Cruise

8. MPA Intermodal / Trade Development Presentation - 2015 Facilitate maritime business through the Port of Baltimore Promote the various stakeholders including private terminals Educate interested parties of the various capabilities Provide and maintain facilities to handle the needs of the industry Act as the local sponsor to the Army Corps of Engineers for the Port’s dredging program. Role of the MPA

9. CHANGING DYNAMCIS Of THE CONTAINER INDUSTRY

10. 2015 TEU T wenty-foot E quivalent U nit Industry standard of measurement 20’ container 40’ container

11. Yesterday Today Tomorrow? Cost Savings = Survival Financial instability has pushed carriers to build larger vessels in an effort to create economies of scale and lower per container costs New construction has outpaced demand and deployment cannot wait for Panama Canal Major new alliances have formed to better utilize capacity and capture cost savings

12. How Big is Big?

13. Big Then, Bigger Now Panamax 4,400 TEU (Current Canal Size) Post Panamax 13,000 TEU (New Canal Size) Super Post Panamax 19,000 TEU POB can handle 14,000 TEU vessels, only 1 of 2 such ports on the U.S. East Coast.

14. MAERSK 14.8% CMA-CGM 8.5% MSC 13.3% COSCO 4.4% EVERGREEN 4.7% K-LINE 1.9% YANG MING 2.2% HANJIN 3.6% HAPAG-LLOYD 4.2% APL 3.6% MOL 3.1% NYK 2.6% OOCL 2.6% HYUNDAI 1.9% CSC 3.4% CSAV 1.5% UNITED ARAB 1.6% Zim 1.8% Industry Consolidation

15. 2014 MAERSK 14.8% MSC 13.3% COSCO 4.4% EVERGREEN 4.7% K-LINE 1.9% YANG MING 2.2% HANJIN 3.6% HAPAG-LLOYD 4.2% APL 3.6% MOL 3.1% NYK 2.6% OOCL 2.6% HYUNDAI 1.9% CSC 3.4% CSAV 1.5% UNITED ARAB 1.6% 2M Alliance Combined Market Share = 28.1% CMA-CGM 8.5% Zim 1.8% Industry Consolidation

16. 2014 MAERSK 14.8% MSC 13.3% COSCO 4.4% EVERGREEN 4.7% K-LINE 1.9% YANG MING 2.2% HANJIN 3.6% HAPAG-LLOYD 4.2% APL 3.6% MOL 3.1% NYK 2.6% OOCL 2.6% HYUNDAI 1.9% CSC 3.4% CSAV 1.5% UNITED ARAB 1.6% 2M Alliance Combined Market Share = 28.1% CMA-CGM 8.5% O3 Alliance Combined Market Share = 13.5% Zim 1.8% Industry Consolidation

17. CSAV 1.5% 2014 MAERSK 14.8% MSC 13.3% COSCO 4.4% EVERGREEN 4.7% K-LINE 1.9% YANG MING 2.2% HANJIN 3.6% CSC 3.4% UNITED ARAB 1.6% 2M Alliance Combined Market Share = 28.1% CMA-CGM 8.5% O3 Alliance Combined Market Share = 13.5% Combined Market Share = 18% G6 Alliance Zim 1.8% HAPAG-LLOYD 4.2% APL 3.6% MOL 3.1% NYK 2.6% OOCL 2.6% HYUNDAI 1.9% Industry Consolidation

18. 2014 MAERSK 14.8% MSC 13.3% COSCO 4.4% EVERGREEN 4.7% K-LINE 1.9% YANG MING 2.2% HANJIN 3.6% HAPAG-LLOYD 4.2% APL 3.6% MOL 3.1% NYK 2.6% OOCL 2.6% HYUNDAI 1.9% CSC 3.4% UNITED ARAB 1.6% 2M Alliance Combined Market Share = 28.1% CMA-CGM 8.5% O3 Alliance Combined Market Share = 13.5% Combined Market Share = 18% G6 Alliance CKYH-E Alliance Combined Market Share = 16.8% Zim 1.8% Industry Consolidation

19. 2014 MAERSK 14.8% MSC 13.3% COSCO 4.4% EVERGREEN 4.7% K-LINE 1.9% YANG MING 2.2% HANJIN 3.6% CSC 3.4% Zim 1.8% UNITED ARAB 1.6% 2M Alliance Combined Market Share = 28.1% CMA-CGM 8.5% O3 Alliance Combined Market Share = 13.5% Combined Market Share = 18% CKYH-E Alliance Combined Market Share = 16.8% HAPAG-LLOYD 4.2% APL 3.6% MOL 3.1% NYK 2.6% OOCL 2.6% HYUNDAI 1.9% G6 Alliance Industry Consolidation

20. 2015 Canals Importance to World Trade Panama Route Suez Route

21. 2015 Panama Canal Expansion – 2016 294.1 m (965’) 33.5 m (110’) 32.3 m (106’) 304.8 m (1,000’) 12.8 m (42’) LENGTH 366 m (1,200’) 55 m (180’) Beam 49 m (160’) 427 m (1,400’) 18.3 m (60’) 12.4 m (39.5’) Existing Locks Max Vessel: 4,400 TEUs New Locks Max Vessel: 13,000 TEUs New Locks Current Locks 15.2 m (50’

22. 2015 Suez Canal Connects Mediterranean and Red Seas. Average transit is 12 to 16 hours. 120 miles long, 66 feet deep. Can handle vessels with capacity approaching 20,000 TEUs. In 2013, over 16,000 vessels transited the Canal, generating in excess of $5 Billion USD in tolls. “New Suez” Canal began construction in August 2014 and projected to cost $8.4 Billion USD. It will increase draft to 90’ and allow for two-way vessel traffic. Estimated completion date is 1 to 3 years.

23. capabilities & Positioning

24. Seagirt Marine Terminal Current Throughput: 703,000 TEU Existing Capacity: 1,200,000 TEU Future Capacity: 1,500,000 TEU On-dock rail CSX

25. Seagirt Marine Terminal Capabilities 50 foot channel existing with 50 foot berth, additional dredging supported by Tiger Grant to aide navigation. Four (4) super post panamax cranes with a reach of 22 containers across, seven (7) post panamax cranes with a reach of 18 containers across. Seven (7) vessel start times: 7:00am, 8:00am, 10:00am, 1:00pm, 3:00pm, 7:00pm and midnight. Averaging 2,600 gate moves per day. On-dock chassis pools operated by Metro Pool ( Trac ) and DCLI. Off-dock operated by Flexi-Van. Improvements planned to facilitate movement of containers to/from ICTF facility located on Seagirt Marine Terminal. Port of Baltimore does not have any air draft limitations, water limitations, or terminal congestion associated with other ports. Port of Baltimore is capable of handling ships as large as 14,000 TEUs today!

26. 185’ 50’ Air & Water Draft Air Water

27. Journal of Commerce 2014 Port Productivity Rankings Methodology & inputs: Utilizes 7 key data points Over 125,000 global ship calls 483 terminals 771 ports Definition: Berth productivity – average gross moves per hour divided by the total time vessel is alongside (actual arrival & departure times of ship at berth) * Annual Special Report from the JOC – 6/09/15 * Baltimore is the only U.S. port ranked at the top of all 3 major categories

28. Journal of Commerce 2014 Port Productivity Rankings

29. Journal of Commerce 2014 Port Productivity Rankings

30. Journal of Commerce 2014 Port Productivity Rankings

31. Baltimore Cargo Continues to Flow Unresolved Congestion at East Coast Ports MPA Intermodal / Trade Development Presentation 2015

32. Baltimore Cargo Continues to Flow Unresolved Congestion at West Coast Ports MPA Intermodal / Trade Development Presentation 2015

33. Congestion in NY / NJ ongoing Marketplace audio and picture http:// www.marketplace.org/topics/sustainability/weak-link-state-infrastructure/trucks-wait-port-little-room-grow

34. MPA Intermodal / Trade Development Presentation $136kYear $11k Year To move the same amount of freight through New York , you would need… $125k Year $61k Year * 5 Trucks On A Weekly Regular Run from Baltimore* To spend this much more per year To spend this much more per load $3k Year $173k Year $13k Year To/From Diff Yearly Penns Grove $155 $40,300 Philadelphia -$14 -$3,640 Harrisburg $233 $60,580 Pittsburgh $481 $125,060 Aberdeen $525 $136,500 Frederick $665 $172,900 Cleveland -$44 -$11,440 Allenton $-104 -$27,040 Hazleton $47 $12,220 * Rates shown do not include fuel surcharge of ~30% Geographic Advantage – Cost

35. 2015 Enhancements Install reefer racks Trucker RFID Tags for real-time visibility Increase inbound lanes by 60% and install weigh-in-motion scales Increase RTG equipment by 33%

36. 2015 Productivity Enhancements Broening Highway Current Seagirt Truck Gate Seagirt Reconstruction with 18 inch depth concrete Scheduled completion Q3

37. 2015 MPA Intermodal / Trade Development Presentation Current Class I Services Infrastructure challenges must be overcome to provide double-stack service MDOT formulating incentive options to mirror double-stack rail service with projected 2015 launch 8 Track ICTF on dock at Seagirt National Gateway has brought new efficiencies and origin/destination locations Short dray to Bay View Yard Utilizes Bal Piers Program Rail Options and Growth

38. CONNECTING TO THE WORLD

39. POB All Water Direct Services Line Geographic Area Evergreen, MSC, Maersk Far East MSC, Maersk, Nordana Mediterranean MSC / Maersk / ACL / Hapag Lloyd / CMA-CGM North Europe CSAV / Hapag Lloyd / CCNI / Hamburg Sud MSC West Coast South America East Coast South America MSC / SafMarine South Africa Bahri , Nordana Middle East Grimaldi West Africa

40. Reasons To Use The Port of Baltimore BCOs can have confidence building supply chains through Baltimore 50 foot channel & 50 foot berth Time = $$$: Unmatched vessel and gate productivity vs. competing ports. Four (4) container berths, eleven (11) cranes including Super Post- Panamax Currently receiving vessels 2X size of Panama Canal – 2M Asian Service. Robust improvements underway to keep ahead of demand. Panama Canal expansion will offer even more ocean carrier options. Environmental leader in DMCF, air emissions, ballast water testing, education Port of Baltimore does not have any air draft limitations, water limitations, or terminal congestion associated with other ports. Port of Baltimore is capable of handling ships as large as 14,000 TEUs today!

41. Thank you! Joe Greco Director Intermodal / Trade Development 410-385-4464 [email protected]