Breakbulk Business Update... · 5/7/2019 · • Breakbulk is a key component of the NWSA's...
Transcript of Breakbulk Business Update... · 5/7/2019 · • Breakbulk is a key component of the NWSA's...
Breakbulk Business Update
Jeff Brubach Andre Elmaleh Manager, Business Development Sr. Manager Business Development
Item No.: 5B.1_suppDate of Meeting: June 4, 2019
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Breakbulk Business Overview
Breakbulk is a core part of the Northwest Seaport Alliance (NWSA) business portfolio. Both harbors have been handling this cargo since their inceptions. Breakbulk business compliments other NWSA business and adds to the economic vitality of the region, while creating a significant number of diverse jobs.What is Breakbulk?
Breakbulk is cargo that either cannot fit, or isn’t efficient to ship in containers, nor is it large quantities of unpackaged cargo in either liquid or granular form (bulk cargo).
Examples of Breakbulk Cargo Include:
Agricultural/Mining/Construction equipment, Modules for energy projects, Tram Railcars
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Current Breakbulk Handling Facilities
East-Blair 1 (EB-1) Terminal Features
• 18 acres• Pier strength: 1,000 psf with 2,000 psf heavy lift section *• On-dock Rail *• Dedicated professional customer service group• Near-dock processing facility for high and heavy cargo• Easy access to I-5 for truck cargo *
* Critical breakbulk facility feature
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Current Breakbulk Handling Facilities
Terminal 7 / Blair Terminal Features
• Used for military cargo and breakbulk overflow• Available covered storage• Near-dock rail access• Easy access to I-5 for truck cargo *
* Critical breakbulk facility feature
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NWSA Breakbulk Customers...Who Are They?
Ocean Carriers: Carriers have direct relationships with ports and guidecustomers to gateways that best meets their needs.
Beneficial Cargo Owners: BCO's have influence over port selection and work with carriers to create low-cost, quality supply chains.
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NWSA Breakbulk Customers (continued)
Freight Forwarders: Forwarders secure end-to-end supply chain details for customers completing large projects or moving single pieces of cargo.
Engineering Procurement Construction Companies: EPC's perform all services for specific projects, spanning from design to site delivery.
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Top NWSA Non-Container Commodities
1. Machinery/Construction Equipment
170,578 MT (2018)
2. Agriculture Equipment23,978 MT (2018)
3. U.S. Military16,501 MT (2018)
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NWSA: U.S. Military Strategic Ports
• The Port of Tacoma serves as a strategic seaport.
• The Port of Seattle serves as an alternate strategic seaport.
• The NWSA relationship allows both ports to work cohesively in times of national emergency to serve both military and commercial customers.
• The NWSA handles 2-3 U.S. Military outloads per year.
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International Markets Served
• Top Countries of Origin• Japan• Korea• Belgium
• Top Countries of Destination• Japan• Belgium• Panama
NWSA Breakbulk Volume:
80%
20%
Import Export
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NWSA Breakbulk Tonnage Trend
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NWSA Breakbulk Cargo Trends
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2016 2017 2018
Number of Pieces Handled
Import
Export
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Breakbulk Market Trends
• Near-sourcing of project cargo
• Containerized shipment of breakbulk equipment (SKD)
• Shipping on flat racks via container vessels
Breakbulk Market Key Drivers
• Renewable energy project demand
• Housing/construction market shift to "modulization"
• Increased demand from emerging markets
• Project cargo requirements
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NWSA Competitive Advantages
• Geographical proximity to Asia
• Dual Class 1 rail service
• On-dock rail at breakbulk facilities
• Heavy-lift capability
• Experienced labor force
• NWSA customer service team support
• Served by most major Ro-Ro ocean carriers
• Service to Canadian markets
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Competitive Landscape
• Import: 42% (1)• Export: 44% (1)• Total: 43% (1)
NWSA43%
Vancouver, WA37%
Kalama9%
Longview5%
Bellingham3%
Portland, OR2%
NWSA
Vancouver, WA
Kalama
Longview
Bellingham
Portland, OR
Aberdeen
Everett
Anacortes
Olympia
Pacific Northwest Breakbulk Market Share(measured in metric tons)
Source: 2017 PIERS data
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Competitive Landscape
• Import: 15% (2)• Export: 14% (2)• Total: 15% (2)
Los Angeles30%
NWSA15%
Vancouver, WA13%
San Francisco12%
Long Beach11%
Oakland7%
Los Angeles
NWSA
Vancouver, WA
San Francisco
Long Beach
Oakland
Kalama
Vancouver, BC
Stockton
Longview
U.S. West Coast Breakbulk Market Share(measured in metric tons)
Source: 2017 PIERS data
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Competitive Landscape
• Import: 2% (15)• Export: 3% (12)• Total: 2% (13)
Houston21%
Mobile14%
S. Louisiana12%New Orleans
12%
New York6%
Corpus Christi6%
Brownsville5%
Los Angeles5%
Philadelphia5%
Baltimore4%
Galveston4%
Charleston3%
NWSA2%
Houston
Mobile
S. Louisiana
New Orleans
New York
Corpus Christi
Brownsville
Los Angeles
Philadelphia
Baltimore
Galveston
Charleston
NWSA
U.S. Breakbulk Market Share(measured in metric tons)
Source: 2017 PIERS data
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NWSA Breakbulk Commercial Strategy
• Actively manage and grow key customer relationships
• Represent NWSA with targeted customer outreach at industry events
• Align stakeholders to fulfill needs of key customers and increase volume through NWSA gateway
• Strategic use of social media to promote NWSA breakbulk advantages has translated to new business
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Financial Overview
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$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
2016 2017 2018 2019 Budget 2019 actual (Estimated)
Military and RO-RO Revenue
EB1 T7
NWSA Supported Breakbulk Jobs
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• Rail Transportation: 1,690
• Truck Transportation, Logistics, Warehousing: 1,100
• Maritime Support Services: 440
• Navigation Services: 340
• Government: 200
• Terminal Operations, Stevedoring, Longshore: 110
Source: 2019 NWSA economic impact analysis
Conclusion• Breakbulk has a rich history in Tacoma and Seattle with a bright future
ahead.
• Breakbulk is a key component of the NWSA's diversified business portfolio.
• Unique in operation and customer base, breakbulk operations are a significant source of jobs.
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