House Select Committee on Strategic Transportation and Long Term Funding Solutions

November 6, 2017

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Welcome to N.C. Ports Fast Facts • Two locations serving the Carolinas

– Over 350,000 teus – Over 4 million tons of general cargo – 600 ship calls a year

• Directly employ 210

– Indirectly an additional 1,250

• Financial summary – Annual revenue $55 million – Annual cash generation $14 million – Profit $4.1 million

North Carolina Ports

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North Carolina Ports

Ports Support N.C.

9,800+ jobs

26,200+ jobs

1,700+ jobs

2,200+ jobs

10,400+ jobs

13,700+ jobs

North Carolina jobs provided directly or indirectly by the ports statewide 76,700 +

Annual tax revenues gained through the ports for the statewide economy

$707 million +

Annual economic contribution to the state’s economy associated with goods moving through N.C. Ports $14 billion +

Economic Contribution of the North Carolina Ports

Institute for Transportation Research and Education, N.C. State University

12,500+ jobs

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Port of Morehead City • Bulk, breakbulk, roll-on roll-off

• 128 acres, plus an additional 150 acres on

Radio Island

• Navigation channel: 45’ ft. M.L.L.W.

• 9 Berths with 5,366 ft. of wharf frontage

• One bridge crane, two gantry cranes, and one

mobile crane

• 170 ship calls a year

• More than 1 million sq. ft. of storage space

• Rail served by Norfolk Southern

• Possible new crane order

Fast, Efficient, & Low Cost • Vessel reliability • Crane productivity • Gate productivity • Favorable rates • Overweight permits

North Carolina Ports

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North Carolina Ports

Port of Wilmington

Fast, Efficient, & Low Cost • Vessel reliability • Crane/Gate productivity • Favorable rates • Overweight permits • No congestion

• Containers, bulk, breakbulk, roll-on roll-off

• 284 acres

• Navigation channel: 42.5’ ft., tide of 4’-5’ ft.

• Accommodate 1,165 ft. LOA & 158 ft.

beam vessels

• 600,000 TEU annual thruput capacity –

abundant room to grow

• 525 ship calls a year

• NC Ports employees perform terminal

operations

• On dock intermodal rail (CSX)

• Refrigerated container on-terminal

capability (200+ plugs)

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Best in Class Productivity Land & waterside lack of congestion Vessel productivity • Last 12 month average: 44 net crane moves/hr. Gate turn time productivity • Last 12 month dual truck turn time: 32 minutes • Last 12 month single truck turn time: 19 minutes • Best terminal rates on U.S. East Coast; flexible

contract terms

• Port of Wilmington gateway delivers millions of dollars in lower truck costs

• Superior customer service

Port of Wilmington

U.S. Ports

52% Exports 48% Imports

59% Imports 41% Exports

Balanced Trade for a Growing Future

North Carolina Ports

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Port of Wilmington Container Services – October 2016

North Carolina Ports

ICL • North Europe Service • 2,800 TEU Vessels SeaLand • Latin America Service • 1,700 TEUs SeaLand • Latin America Service • 1,300 TEUs

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Port of Wilmington Container Services Today

North Carolina Ports

THE Alliance - Transpacific • EC2 Weekly Service • 8,500 TEU Vessels

2M Alliance - Transpacific • TP10/Amberjack Service • 4,500 TEU Vessels

ZIM – Southeast Asia • Z7S Service • 5,000 TEU Vessels

ICL - Transatlantic • North Europe Service • 2,800 TEU Vessels SeaLand – Latin America • SAE Service • 1,700 TEUs SeaLand – Latin America • Atlantico Service • 1,300 TEUs

NEW SERVICE Crowley – Latin America • Starts November 28

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Investing for North Carolina’s Future

Port of Wilmington = Big Ship Ready Turning Basin Expansion Phase One Complete

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Evergreen Ever Laden Sept. 10, 2016 8,500 TEUs 1,099 ft. long 150 ft. wide

K Line Helsinki Bridge May 12, 2017 8,500 TEUs 1,098 ft. long 150 ft. wide

Yang Ming Unity Aug. 7, 2016 8,200 TEUs 1,101 ft. long 140 ft. wide

MSC Maureen Oct. 13, 2016 6,750 TEUs 985 ft. long 131 ft. wide

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Container Shipping Specifications

10,001-12,500 TEU

Length: 1,200+ ft (366+ m) Beam: 161-170 ft (49-52 m) Designed Draft: 45-50 ft (13-15 m)

8,001-10,000 TEU Length: 984-1,100 ft (300-335 m) Beam: 158-161 ft (48-49 m) Designed Draft: 41-48 ft (12-14m)

4,501-8,000 TEU Length: 965-984 ft (294-300 m) Beam: 141 ft (43 m) Designed Draft: 41-45 ft (12 -14 m)

3,400-4,500 TEU Length: 951-965 ft (290-294 m) Beam: 105 ft (32 m) Designed Draft: 41 ft (12.5 m)

* Most vessels that arrive at the Port of Wilmington do not arrive at designed draft

North Carolina Ports

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Turning Basin Expansion Phase One

North Carolina Ports

• Phase one completion date of July 31, 2016 • Accommodates post-Panamax vessels with LOA of 1,165 ft. and breadth of 158 ft.

• Depending on vessel’s profile, typically accommodates those in the 8,000 to 10,000 TEU range • PHASE TWO – An additional 35 ft. to get to 1,200 ft.

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Port of Wilmington Infrastructure Investments • Turning basin expansion phase one

– COMPLETED

• Turning basin expansion phase two – UNDERWAY

• Berth 8 replacement project – UNDERWAY

• Purchase 3 new ultra-Panamax container cranes – ORDERED

• 2 CRANES ARRIVE APRIL 2018

• Capability to operate two post-Panamax vessels simultaneously – MID 2019

• Container yard redesign construction – UNDERWAY

North Carolina Ports

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USACE Channel Projects & Air Draft Clearance Restrictions

North Carolina Ports

USACE Channel Deepening Projects Air Draft

Port Current Depth

Approved Depth Total Cost

Total USACE Share

Total State Share

Programmed Balance to Complete

Clearance Restriction

(in feet)

Savannah 42 47 $1,028,730,000 $671,362,500 $357,367,500 $578,751,150 185

Boston 45 48 $656,049,000 $492,037,000 $164,012,000 $211,460,000 None

Charleston 45 52 $530,000,000 $230,000,000 $300,000,000 $212,500,000 186

Wilmington 42 TBD Not identified 171

Jacksonville 40 47 Not identified None

Norfolk 50 55 Not identified None

New York 50 50 215

Miami 50 50 None *Savannah and Boston included in FY18 President's budget, Charleston had $17.5M in FY17 USACE Budget, no funds committed in FY18.

THE NEW STANDARD

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Neighboring Expansion Projects South Carolina Ports Authority & Georgia Ports Authority

North Carolina Ports

Savannah Harbor Expansion Project

• Deepen the 18.5-mile outer harbor

to 49 feet

• Deepen the Savannah River channel to 47 feet

• Dredging to be completed as early as 2019

• Enable the port to more efficiently serve large vessels transiting Panama Canal

Charleston Harbor Deepening Project

• $213 million deal to help make the waterway the deepest on the East Coast

• 2nd phase to deepen 20-mile inner

harbor to 52 feet

• First-phase of dredging to begin this fall

• Completion set for 2020

• Improves accessibility for supersized cargo ships visiting the Port of Charleston

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Cape Fear River Channel Long Term Enhancement

• NC Ports is conducting an official

Feasibility Study with U.S. Army

Corps of Engineers to examine a

host of navigational improvements to

the channel, including deepening and

widening the Cape Fear River basin

• Long-term viability requires

channel improvements

• Neighboring ports well underway

• Air draft restriction must be resolved

North Carolina Ports

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North Carolina Ports

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Transiting the CSX Rail Lines

A

B

Port of Wilmington

CSX Rail Ramp - Charlotte

Existing rail line Proposed restoration of rail line

North Carolina Ports

Greensboro-Randolph Megasite

Moncure Megasite Chatham-Siler City Megasite

Kingsboro Megasite

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Federal Grants TIGER • Berth 7 Upgrade – Total project cost: $30.17M, federal request: $12.07M. Notification expected early 2018. • Intermodal Yard Improvements – Total project cost: $22.2M, federal request: $10.4M. Notification expected early

2018. INFRA • Intermodal Capabilities & Container Yard Improvements – Total project cost: $100.07M, federal request:

$40.63M. Notification expected early 2018. Includes available large project funds for FY17 and FY18.

North Carolina Ports

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North Carolina Ports

Port of Virginia • Port Volume Increase Tax Credit – Credit is $50 per TEU or one unit of roll-on/roll-off cargo in excess of the base

year cargo. • International Trade Facility Tax Credit – Credit is either (i) $3,500 per qualified full-time employee or (ii) an amount

equal to 2% of qualified capital investment expenses made by the taxpayer. South Carolina Ports Authority • International Trade Incentive Program – South Carolina provides a credit against income taxes or withholding taxes

to entities that use state port facilities. Georgia Ports Authority • Port Tax Credit Bonus – New or expanding Georgia companies that increase imports or exports through a Georgia

port by at least 10% over the previous or base year.

Competing Ports Incentives

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North Carolina Ports

Ocean Carrier Growth & Savings Opportunity

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Wilmington

Savannah

Charleston

Norfolk

Total: 34% Asia: 25% Europe: 75%

Total: 25% Asia: 26% Europe: 10% Total: 24%

Asia: 25% Europe: 2%

In addition to a vast market, Port of Wilmington offers:

• Favorable thruput rates

• Available storage

• Flexible free time

• Inland favorable to major markets: Greensboro, Charlotte & Raleigh, N.C.

• Efficient gate & vessel productivity leads to cost savings

Long Term Considerations (30 years out)

• Rail Network and Connectivity – Wilmington Rail Projects – Morehead City

• Interstate Connectivity – Interstate 74 Wilmington to Charlotte

• Cape Fear & Morehead City Channels – Annual Operations & Maintenance Requirements – Cape Fear Enhancement Projects

• New Container Port Location

North Carolina Ports

MUST INCREASE

RAIL USAGE

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Action Items

• Support Section 203 study • Continued capital improvement

investments • Address power lines • Study long term options for new port

locations

North Carolina Ports

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Part of an Integrated Transportation Network

Port of Wilmington

Port of Morehead City

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Imagine Your Future Here

North Carolina Ports

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As we get bigger, the world gets smaller.

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