CONTAINER PORT CAPACITY STUDY

Transcription

1 CONTAINER PORT CAPACITY STUDY The Group, Inc. Prepared for: CDM/IWR December 2, 2010 The Group, Inc. 288 Rheem Blvd. Moraga, CA Phone Fax

2 Contents I. SUMMARY 1 II. BACKGROUND AND APPROACH 8 III. NORTH ATLANTIC PORTS 24 IV. SOUTH ATLANTIC PORTS 65 V. GULF PORTS 104 VI. APPENDIX: SECONDARY CONTAINER PORTS 125 Page i

3 Exhibits Exhibit 1: Major Ports Analyzed... 1 Exhibit 2: 2008 Port Utilization Summary... 2 Exhibit 3: Reserve Container Port Capacity by Coast... 3 Exhibit 4: Terminal Space and CY Utilization... 3 Exhibit 5: 2008 TEU and CY TEU Capacity... 4 Exhibit 6: Average TEU Slots per CY Acre... 5 Exhibit 7: Container Cranes and Utilization... 5 Exhibit 8: Berth and Vessel Capacity and Utilization... 6 Exhibit 9: Major Ports Analyzed Exhibit 10: Five "Dimensions" of Container Terminal Capacity Exhibit 11: Container Vessel DWT vs. TEU Capacity Exhibit 12: Reported vs. Estimated Container Vessel TEU Exhibit 13: DWT vs. Draft Exhibit 14: USACE Guidance on Cargo Capacity as a Percentage of DWT Exhibit 15: Maximum vs. Average Vessel Capacity - TEU Exhibit 16: Vessel Size and Load Comparison Exhibit 17: Berth Capacity - Maximum Vessel Basis Example Exhibit 18: Berth Capacity Estimate- Vessel Call Basis Example Exhibit 19: Container Yard Handling Equipment Types Exhibit 20: Progression of Terminal Handling Methods Exhibit 21: Wheeled Containers on RTG Layout Exhibit 22: Typical CY Storage Densities Exhibit 23: CY Acreage Example: Port of New Orleans Exhibit 24: CY Capacity Example: Port of New Orleans Exhibit 25: Typical Two-Berth/Four-Crane Terminal Exhibit 26: Container Cranes and Utilization Exhibit 27: North Atlantic Capacity and Utilization Summary Exhibit 28: North Atlantic Drafts and Vessel Data Exhibit 29: Port of Boston Conley Container Terminal Exhibit 30: Conley Container Terminal Profile Exhibit 31: Conley Terminal Land Use Page ii

4 Exhibit 32: Conley Terminal Near Term CY Capacity Exhibit 33: Conley Terminal Near Term Crane Capacity Exhibit 34: Boston Near Term Berth Capacity Maximum Vessel Basis Exhibit 35: Conley 2007 Berth Capacity Vessel Call Basis Exhibit 36: Conley Terminal Near Term Capacity and Productivity Summary Exhibit 37: Port of New York and New Jersey Exhibit 38: Red Hook Marine Terminal Exhibit 39: Global Marine Terminal Exhibit 40: Port Newark Container Terminal (PNCT) Exhibit 41: Maher Terminal Exhibit 42: APM Elizabeth Marine Terminal Exhibit 43: New York Container Terminal Exhibit 44: Port of New York and New Jersey Land Use Exhibit 45: Port of New York and New Jersey Near Term CY Storage Capacity Exhibit 46: Port of New York and New Jersey Near-term Crane Capacity Exhibit 47: Port of New York and New Jersey Near Term Berth Capacity Maximum Vessel Basis Exhibit 48: Port of New York and New Jersey Berth Capacity Vessel Call Basis Exhibit 49: Port of New York and New Jersey Near Term Capacity and Productivity Summary Exhibit 50: Packer Marine Terminal Exhibit 51: Packer Marine Terminal, Philadelphia Exhibit 52 Wilmington Marine Terminal Exhibit 53: Wilmington Marine Terminal, Wilmington, DE Exhibit 54: Delaware River Ports Land Use Exhibit 55: Delaware River Ports Near Term CY Storage Capacity Exhibit 56: Delaware River Ports Near-term Crane Capacity Exhibit 57: Delaware River Ports Near Term Berth Capacity Maximum Vessel Basis Exhibit 58: Delaware River Ports Berth Capacity Vessel Call Basis Exhibit 59: Delaware River Ports Near Term Capacity and Productivity Summary Exhibit 60: Port of Baltimore Exhibit 61: Dundalk Marine Terminal Exhibit 62: Seagirt Marine Terminal Exhibit 63: Port of Baltimore Land Use Page iii

5 Exhibit 64: Port of Baltimore Near Term CY Storage Capacity Exhibit 65: Port of Baltimore Near-term Crane Capacity Exhibit 66: Port of Baltimore Near Term Berth Capacity Maximum Vessel Basis Exhibit 67: Port of Baltimore Berth Capacity Vessel Call Basis Exhibit 68: Port of Baltimore Near Term Capacity and Productivity Summary Exhibit 69: Port of Hampton Roads Exhibit 70: Norfolk International Terminal Exhibit 71: Portsmouth Marine Terminal Exhibit 72: Newport News Marine Terminal (NNMT) Exhibit 73: APM Terminals Virginia Exhibit 74: Port of Virginia Land Use Exhibit 75: Port of Virginia Near Term CY Storage Capacity Exhibit 76: Port of Virginia Near-term Crane Capacity Exhibit 77: Port of Virginia Near Term Berth Capacity Maximum Vessel Basis Exhibit 78: Port of Virginia Berth Capacity Vessel Call Basis Exhibit 79: Port of Hampton Roads Near Term Capacity and Productivity Summary Exhibit 80: South Atlantic Capacity and Utilization Summary Exhibit 81: South Atlantic Drafts and Vessels Exhibit 82: Port of Charleston Exhibit 83: Wando Welch Terminal Exhibit 84: North Charleston Terminal Profile Exhibit 85: North Charleston Terminal Drawing Exhibit 86: Columbus Street Terminal Exhibit 87: Columbus Street Terminal Profile Exhibit 88: Port of Charleston Land Use Exhibit 89: Port of Charleston Near Term CY Storage Capacity Exhibit 90: Port of Charleston Near Term Crane Capacity Exhibit 91: Port of Charleston Near Term Berth Capacity Maximum Vessel Basis Exhibit 92: Charleston 2007 Berth Capacity Vessel Call Basis Exhibit 93: Port of Charleston Near Term Capacity and Productivity Summary Exhibit 94: Garden City Container Terminal Exhibit 95: Garden City Terminal Profile Page iv

6 Exhibit 96: Garden City Land Use Exhibit 97: Garden City Near Term CY Storage Capacity Exhibit 98: Garden City Terminal Near Term Crane Capacity Exhibit 99: Garden City Terminal Near Term Berth Capacity Max Vessel Basis Exhibit 100: Garden City 2007 Berth Capacity Vessel Call Basis Exhibit 101: Garden City Near Term Capacity Summary Exhibit 102: Port of Jacksonville Marine Terminals Exhibit 103: Blount Island Terminal Profile Exhibit 104: Talleyrand Marine Terminal Exhibit 105: Dames Point Container Terminal Exhibit 106: Port of Jacksonville Land Use Exhibit 107: Port of Jacksonville CY Storage Capacity Exhibit 108: Port of Jacksonville Near Term Crane Capacity Exhibit 109: Port of Jacksonville Near Term Berth Capacity Max Vessel Basis Exhibit 110: Port of Jacksonville 2009 Berth Capacity Vessel Call Basis Exhibit 111: Port of Jacksonville Near Term Capacity and Productivity Summary Exhibit 112: Port Everglades Container Terminals Exhibit 113: Port Everglades Container Terminal Profile Exhibit 114: Midport Terminal Area Exhibit 115: Port Everglades Land Use Exhibit 116: Port Everglades Near Term CY Capacity Exhibit 117: Port Everglades Near Term Crane Capacity Exhibit 118: Port Everglades Near Term Berth Capacity Maximum Vessel Basis Exhibit 119: Port Everglades 2007 Berth Capacity Vessel Call Basis Exhibit 120: Port Everglades Near Term Capacity and Productivity Summary Exhibit 121: Port of Miami Container Terminals Exhibit 122: Miami Tunnel Project Exhibit 123: South Florida Container Terminal Profile Exhibit 124: Port of Miami Terminal Operating Company Terminal (POMTOC) Exhibit 125: Seaboard Marine Terminal Exhibit 126: Port of Miami Land Use Exhibit 127: Port of Miami CY Storage Capacity Page v

7 Exhibit 128: Port of Miami Near Term Crane Capacity Exhibit 129: Port of Miami Near Term Berth Capacity Maximum Vessel Basis Exhibit 130: Port of Miami 2007 Berth Capacity Vessel Call Basis Exhibit 131: Port of Miami Near Term Capacity and Productivity Summary Exhibit 132: Gulf Coast Capacity and Utilization Summary Exhibit 133: Gulf Coast Draft and Vessel Data Exhibit 134: Mobile Container Terminal (MCT) Exhibit 135: Mobile Pier Two - Container and General Cargo Terminal Exhibit 136: Mobile Container Terminal Profile Exhibit 137: Pier Two Terminal Profile Exhibit 138: Port of Mobile Land Use Exhibit 139: Port of Mobile Near Term CY Storage Capacity Exhibit 140: Port of Mobile Near Term Crane Capacity Exhibit 141: Port of Mobile Near Term Berth Capacity Maximum Vessel Basis Exhibit 142: Port of Mobile Berth Capacity Vessel Call Basis Exhibit 143: Port of Mobile Near Term Capacity and Productivity Summary Exhibit 144: Port of New Orleans Napoleon Avenue Terminal Exhibit 145: Napoleon Avenue Terminal Profile Exhibit 146: Port of New Orleans Land Use Exhibit 147: Port of New Orleans Near Term Storage Capacity Exhibit 148: Port of New Orleans Near Term Crane Capacity Exhibit 149: Port of New Orleans Near Term Berth Capacity Maximum Vessel Basis Exhibit 150: Port of New Orleans 2007 Berth Capacity Vessel Call Basis Exhibit 151: Port of New Orleans Near Term Capacity and Productivity Summary Exhibit 152: Port of Houston Terminals Exhibit 153: Barbours Cut Terminal Exhibit 154: Bayport Terminal Exhibit 155: Port of Houston Land Use Exhibit 156: Port of Houston Near Term CY Storage Capacity Exhibit 157: Port of Houston Near Term Crane Capacity Exhibit 158: Port of Houston Near Term Berth Capacity Maximum Vessel Basis Exhibit 159: Port of Houston 2007 Berth Capacity Vessel Call Basis Page vi

8 Exhibit 160: Port of Houston Near Term Capacity and Productivity Summary Exhibit 161: Wilmington, NC Exhibit 162: Port of Palm Beach - Riviera Beach Terminal Exhibit 163: Port of Tampa Exhibit 164: Port of Gulfport Exhibit 165: Freeport, TX Exhibit 166: Additional Texas Ports Page vii

9 I. Summary U.S. container port capacity is the single most critical factor in the nation s ability to participate in containerized trade. Within this port network the Corps of Engineers primary focus is on navigation improvements developing and maintaining the channels, berths, and other aids that give container ships access to port terminals. The facilities, equipment, systems, and manpower needed for container terminals are all costly. There is an inherent tension between having enough capacity for trade peaks and expected growth and creating excess capacity that ties up valuable resources. This study was initiated to obtain a broad overview of East Coast and Gulf Coast container port capacity as an input to the Corps planning and as a supplement to the many documents and studies produced in the course of project feasibility studies. The study team attempted to address the following questions. What are the near-term and long-term capacities of the major East Coast and Gulf Coast container ports? What factors constrain the capacities of those ports? How well is capacity currently utilized? How well are the major ports prepared to handle larger vessels? How do the smaller container ports or terminals fit into the picture? There is a particular concern over capacity at East Coast (North Atlantic and South Atlantic) and Gulf Coast ports. Before the recession, emergence of multi-coast import strategies shifted market share and volume from the West Coast to the East and Gulf Coasts. The planned opening of the new, higher-capacity Panama Canal locks in 2014 will permit carriers to deploy larger, more economical vessels in Asia-East Coast and Asia-Gulf services. The study team analyzed the following major container ports (Exhibit 9). Exhibit 1: Major Ports Analyzed North Atlantic South Atlantic Gulf Boston Charleston Mobile New York/New Jersey Savannah New Orleans Philadelphia Jacksonville Houston Wilmington Baltimore Virginia Port Everglades Miami Exhibit 2 display five measures of estimated 2008 utilization for these major North Atlantic, South Atlantic, and Gulf ports, and for the East Coast and Gulf total. With the exception of high estimated berth utilization at some South Atlantic ports, the data in Exhibit 1 indicate substantial reserve capacity. North Atlantic ports, notable the Port Authority of New York and New Jersey Page 1

10 (PANYNJ) are relatively tight on container yard (CY) capacity. Gulf ports have higher vessel utilization (e.g. are discharging and loading a higher percentage of vessel capacity), largely due to draft restrictions at Houston that hold down maximum vessel size. Exhibit 2: 2008 Port Utilization Summary 90% 80% 70% CY Utilization Crane Utilization Avg. Vessel Ute. - % Discharge/Load Berth Utilization - Vessel Call Basis Berth Utilization - Avg. Vessel Basis 83% 60% 50% 40% 55% 42% 42% 39% 54% 39% 37% 34% 57% 53% 49% 46% 44% 42% 42% 42% 34% 33% 30% 30% 20% 10% 0% N. Atlantic Ports* S. Atlantic Ports Gulf Ports East & Gulf Coast Ports Utilization estimates for the combined East Coast and Gulf ports are near or below 50%. On average, these ports are using: 42% of their CY storage capacity given existing land uses; 33% of the two-shift capacity of their container cranes; 49% of the berth capacity for vessel calls; 42% of the vessel capacity for cargo discharge and load; and 53% of the berth TEU throughput capability using the maximum vessel sizes. Many ports have annual volume peaks that can strain capacity for a short period. The figures in Exhibit 2 and throughput the report are based on an annual capability of 80% of the theoretical maximum to allow for peaking and sustainable service quality. Volume figures used throughout this report are compared to 2008 volumes reported to the American Association of Port Authorities (AAPA). As has been widely reported, 2009 cargo volumes were down 10%-30% from 2008, so using 2009 volumes would artificially inflate estimates of reserve capacity. It is also likely, however, that the major container ports will have somewhat more reserve capacity than was estimated herein until the trade recovers. Page 2

11 Exhibit 3 summarizes the implied reserve container port capacity by coast and for the East and Gulf port total. Generally speaking, the system as a whole could handle roughly double the 2008 volume before hitting CY or berth capacity constraints. That result would obtain, however, only if the increased trade were distributed according to the available capacity an unlikely outcome. It is far more likely that some ports and terminals would see a disproportionate share of the cargo growth and hit capacity constraints while other ports and terminals remained underutilized. Metric Exhibit 3: Reserve Container Port Capacity by Coast N. Atlantic Ports* S. Atlantic Ports Gulf Ports East & Gulf Coast Ports 2008 TEU 8,744,838 6,676,245 2,229,877 17,650,961 Reserve CY Capacity - TEU 10,612,402 13,869,035 2,669,003 25,491,439 Reserve Crane Capacity - TEU 20,895,164 12,501,742 4,423,466 37,820,372 Reserve Berth Capacity - Vessel Calls Reserve Berth Capacity - Avg. Vessel Basis 11,832,051 1,922,907 2,799,609 16,554,568 Reserve Berth Capacity - Max. Vessel Basis 29,332,298 3,193,986 2,554,332 35,080,616 Exhibit 4 provides key measures of terminal space and CY utilization. The North and South Atlantic ports taken together are about 10 times the size of the Gulf ports and have about 90% of the CY capacity. In 2008 these ports averaged about 2,307 TEU per gross acre. This sort of relatively low density is often compared to much higher throughput per acre achieved in Asia and Europe. Asian and European terminals, however, typically devote almost all their terminal space to CY functions and rarely have on-dock rail, chassis storage, warehousing, or other functions in the terminal acreage. As Exhibit 4 shows, however, East and Gulf Coast terminals devote an average of only 48% of the gross acres to CY functions. The average throughput for actual CY space was 4,842 TEU per acre, a more accurate basis of comparison. Metric Exhibit 4: Terminal Space and CY Utilization N. Atlantic Ports* S. Atlantic Ports Gulf Ports East & Gulf Coast Ports 2008 TEU 8,744,838 6,676,245 2,229,877 17,650,961 Gross Acres 3,227 3, ,783 CY Acres 1,542 1, CY/Gross Ratio 48% 45% 62% 48% Annual CY Capacity - TEU 17,698,240 20,545,280 4,898,880 43,142,400 Reserve CY Capacity - TEU 10,612,402 13,869,035 2,669,003 25,491,439 Annual TEU/Gross Acre 2,918 1,739 3,109 2,268 Annual TEU/CY Acre 5,973 3,893 5,045 4,772 Est. CY TEU Slots 267, ,880 84, ,860 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 55% 32% 46% 41% Exhibit 5 compares 2008 TEU and estimated CY TEU capacity. Reserve capacity is greatest at NYNJ, Charleston, and Savannah. This chart, however, does not take into account current and announced terminal expansion projects in Mobile, Houston, and elsewhere. terms of shear size PANYNJ, Charleston, Savannah, and Jacksonville are the largest ports. The Delaware River Ports include Philadelphia and Wilmington, DE. The Port of Virginia includes Norfolk, Newport Page 3

12 News, and Portsmouth terminals. The APM Portsmouth terminal is new and not part of the Port of Virginia and is therefore shown separately. Exhibit 5: 2008 TEU and CY TEU Capacity 45,000,000 40,000,000 35,000,000 30,000,000 Reserve CY Capacity - TEU 2008 TEU 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Boston NYNJ Delaware River Baltimore VPA APM Portsmouth N. Atlantic Ports* Charleston Savannah Jacksonville Port Everglades Miami S. Atlantic Ports Mobile New Orleans Houston Gulf Ports East & Gulf Coast Ports Exhibit 6 compares CY storage densities. Those terminals with the largest shares of land set up for RTG operations, such as Boston, Baltimore, Charleston, and Savannah show the highest slot densities, although not all those slots are regularly occupied. The highest density is at the APM Portsmouth terminal, which is the only U.S. terminal using RMGs. The available TEU slots were estimated by applying rule-of-thumb storage densities to the acreage used for wheeled, stacked, straddle carrier, RTG, or RMG handling. Annual throughput capacity is therefore a function of TEU slots and annual turnover per slot. The ports analyzed averaged 194 TEU slots per acre against a rough maximum of 300 for all-rtg storage. As the data suggest, almost all the terminals examined use a mix of storage types and densities. The East and Gulf Coast ports averaged an estimated 25 annual turns per slot against a benchmark maximum of 70. Annual turns per slot are noticeably higher in the North Atlantic (largely due to PANYNJ and the Ports of Virginia). Page 4

13 Exhibit 6: Average TEU Slots per CY Acre CY Storage TEU Slots per Acre Wheeled Chassis 80 Grounded Straddle Carrier 160 Grounded Stacked 200 Grounded RTG 300 Grounded RMG 360 Boston NYNJ Delaware River Baltimore VPA APM Portsmouth N. Atlantic Ports* Charleston Savannah Jacksonville Port Everglades Miami S. Atlantic Ports Mobile New Orleans Houston Gulf Ports East & Gulf Coast Ports As Exhibit 7 shows, crane utilization in terms of annual TEU is relatively low, averaging 33% This relatively low utilization might imply an excess of crane capacity. Yet the primary purpose of crane capacity is to turn vessels quickly. Whether there is one vessel per week or five, each vessel will need two or more cranes. Not coincidently, the terminals surveyed averaged two cranes per berth. Crane utilization is therefore co-determined with berth and vessel utilization. Exhibit 7: Container Cranes and Utilization Container Cranes N. Atlantic S. Atlantic East & Gulf Coast Gulf Ports Ports* Ports Ports Cranes Cranes per Berth Annual Crane Capacity - TEU 29,640,002 19,177,987 6,653,344 55,471,333 Reserve Crane Capacity - TEU 20,895,164 12,501,742 4,423,466 37,820,372 Annual TEU/Crane 76,709 86,704 82,588 78,799 Annual Moves/Crane 43,140 48,739 47,017 45,532 Crane Utilization 30% 35% 34% 32% Berth and vessel utilization, shown in Exhibit 8, are tightly linked. In 2007, the ports and terminals averaged 103 annual vessel calls per berth roughly two per week. The average was higher in the South Atlantic. Against a benchmark maximum of 260 calls per year (one each week day) and a rule-of-thumb sustainable maximum of 208 (80%), the average of 103 calls implies 49% utilization. In practical terms, berths that are handling two vessels per week could probably handle four. This conclusion, however, depends on vessel size and the total cargo discharged and loaded. The vessels calling at these ports in 2007 had an average capacity of 3,710 TEU (estimated from DWT data). The average discharge and load was 9,553 TEU, or 42% of vessel capacity. The theoretical maximum is actually 200% of capacity 100% Page 5

14 discharged and 100% loaded. That only 49% of the capacity is discharged and loaded implies that the vessels themselves are not sailing full or that the capacity is shared between multiple port calls, or most likely, both. Exhibit 8: Berth and Vessel Capacity and Utilization Berths and Vessels N. Atlantic S. Atlantic East & Gulf Coast Gulf Ports Ports* Ports Ports Berths Berth Feet 58,200 38,608 12, ,708 Annual Vessel Calls (2007) 5,576 4,963 1,149 11,688 Annual Vessel Calls per Berth (2007) Berth Utilization - Vessel Call Basis 39% 54% 42% 49% Reserve Berth Capacity - Vessel Calls Annual TEU per Berth 164, , , ,833 Annual TEU/Foot of Berth Average Vessel Capacity - TEU 3,762 3,727 3,387 3,710 Average TEU per Vessel (2007) 1,568 1,345 1,941 1,510 Avg. Vessel Ute. - % Discharge/Load 42% 36% 57% 41% Berth Capacity - Avg. Vessel Basis 20,576,889 8,599,152 5,029,487 34,205,528 Berth Utilization - Avg. Vessel Basis 42% 78% 44% 52% Reserve Berth Capacity - Avg. Vessel Basis 11,832,051 1,922,907 2,799,609 16,554,568 Reserve Berth Capacity - Max. Vessel Basis 29,332,298 3,193,986 2,554,332 35,080,616 The average vessel capacities shown in Exhibit 8 are low compared to the maximum vessel sizes that ports say that they can accommodate with the available draft. Ports typically receive few if any calls from the maximum size vessels, so most calls are made by a mix of smaller container ships. Throughput could be increased by using larger vessels for the same number of calls, making more calls with the same vessels, discharging and loading more of the vessel capacity at each call, or any combination of these changes. In each case more container cranes and/or crane time would be required to handle the increased cargo while keeping the vessel on schedule. The crane capacity estimates are based on availability for two shifts per day, 250 days per year (4,000 annual hours). The cranes are, in fact, available 24 hours per day if the terminal operator needs the additional shifts to turn the vessel on schedule and is willing to pay for overtime. The study team also briefly reviewed the capabilities of the secondary East Coast and Gulf Ports, detailed in the Appendix. Wilmington, NC Beaumont, TX Palm Beach, FL Port Arthur, TX Tampa, FL Texas City, TX Gulfport, MS Galveston, TX Freeport, TX Corpus Christi, TX. Generally speaking, the secondary ports supplement the capacity of the major ports and handle trades and cargoes that do not fit in well with the large, dedicated container terminals. These Page 6

15 ports handle a mix of containerized, bulk, and break-bulk shipments, so their container capacities are difficult to determine with precision. This mix of capabilities, does however, provide flexibility, particularly for project cargoes and other limited-duration needs. While these ports handle relatively small volumes of containers, several have specific importance to the imported fruit trade (e.g. bananas) and other niche markets. Some, such as Wilmington and Beaumont, are part of larger complexes that include major military shipping points. Tampa, Gulfport, Freeport, and Corpus Christi have expansion plans in various stages of progress. Overall, the North Atlantic, South Atlantic, and Gulf ports have substantial inherent capacity for near-term growth. That growth can be achieved through more intensive use of existing terminals, cranes, and berths. The existence of aggregate reserve capacity does not preclude slot shortages at ports and terminals that receive more than their share of growth. Page 7

16 II. Background and Approach Background The capacity of U.S. container ports is the single most critical factor in the nation s ability to participate in containerized trade. Beginning in the 1950s and accelerating in the decades that followed, containerization transformed both international merchandise trade and the ports that serve it. Efficient handling of containerized trade requires far more than just dockside space and labor it requires sophisticated facilities, equipment, and systems manned by trained operators. The facilities, equipment, systems, and manpower needed for container terminals are all costly. There is an inherent tension between having enough capacity for trade peaks and expected growth and creating excess capacity that ties up valuable resources. Within this port network the Corps of Engineers primary focus is on navigation improvements developing and maintaining the channels, berths, and other aids that give container ships access to port terminals. That responsibility is also a balancing act. Dredging and related activities are costly and time consuming, and have serious environmental implications. Moreover, in an era of limited resources, the Corps cannot meet every port s desire for unlimited vessel access. There is little benefit to providing deeper channels if terminals do not have capacity to match, or to expanding terminals if channels become a bottleneck. There are few, if any, concerns over container port capacity for the immediate future. The global recession has drastically eroded containerized trade, with most ports seeing 2009 volumes percent below the peaks. Trade began to recover its momentum in early 2010 as this report was being prepared, but it will likely take 5-7 years to regain volumes. At those peaks, however, there were legitimate concerns over the capacity of U.S. container ports to accommodate foreseeable long-term growth. The San Pedro Bay ports were severely congested during the 2004 peak shipping season. Spot capacity shortages have developed from time to time at many ports (and have persisted in some cases despite the recession). Given the high cost and long lead times required to expand container terminal capacity, it is reasonable to ask whether the capacity will be available when it is eventually needed. There is a particular concern over capacity at East Coast (North Atlantic and South Atlantic) and Gulf Coast ports. Before the recession, growth and maturation of supply chains had led major importers to diversity their routings away from the past concentration in Southern California. The emergence of multi-coast import strategies shifted market share and volume from the West Coast to the East and Gulf Coasts. Concern over potential congestion and cost increases in Southern California added impetus to this trend. Some East Coast ports have also been very successful in attracting new distribution centers to their region, in sync with the diversification of import supply chains. Page 8

17 The planned opening of the new, higher-capacity Panama Canal locks in 2014 will permit carriers to deploy larger, more economical vessels in Asia-East Coast and Asia-Gulf services. The increase in vessel sizes is likely to be gradual for several reasons. While the new locks will accommodate vessels of 12,000-13,000 TEU, such vessels are presently dedicated to the Asia-Europe trade. The vessel fleet required to provide 12,000+ TEU capacity in trans-panama service does not yet exist. Given the drastic decline in container vessel orders, it is unlikely that such a fleet will exist in Carriers are more likely to use smaller vessels presently laid up. The recession has led to a fall-off in trans-panama trades and a withdrawal of some all-water services. The volume needed to support a tripling of pre-recession capacity (from 4,000 TEU vessels to 12,000 TEU vessels) is unlikely to emerge by Consolidation of services through vessel-sharing agreements may achieve some economies of scale, but is unlikely to fill 12,000 TEU vessels at the same service frequency as the 3,000-4,000 TEU vessels now deployed. While a more gradual increase in the size of trans-panama container vessels will likely give the ports and the Corps more time to respond, the response will still be necessary. Moreover, the East Coast and Gulf ports also serve the trans-atlantic and round-the-world (RTW) trades in which vessel sizes are also increasing. This study was initiated to obtain a broad overview of East Coast and Gulf Coast container port capacity as an input to the Corps planning and as a supplement to the many documents and studies produced in the course of project feasibility studies. The study team attempted to address the following questions. What are the near-term and long-term capacities of the major East Coast and Gulf Coast container ports? What factors constrain the capacities of those ports? How well is capacity currently utilized? How well are the major ports prepared to handle larger vessels? How do the smaller container ports or terminals fit into the picture? This report does not address the capacity of highways, railroads, and intermodal connector to move containers to and from the ports. Trade growth through was creating concern among local, regional, and state transportation officials regarding impacts on road and rail infrastructure. The recession has provided a multi-year reprieve, but the issue will eventually return. This report likewise does not address the supply of drayage trucks and drivers needed to pick up and deliver more containers. The drayage tractor supply can be increased as required, although Page 9

18 meeting stringent emissions requirements will add to the cost. The supply of drivers may be more problematical. Until the recession, motor carriers nationwide were experiencing a persistent driver shortage. Some Southern California drayage firms were offering signing bonuses for new drivers. TWIC requirements have further reduced the pool of drivers eligible for port drayage. As trade recovers, there could be a shortage of drayage drivers. Finally, this study does not address the need for trained personnel to operate expanded terminals. Labor supply cannot be taken for granted. A major contributor to the 2004 peak season congestion in Southern California was a Longshore labor shortage. The pool of Longshore labor has since expanded, but has shrunk somewhat as longshoremen idled by the recession have moved to other jobs. Overall Approach The study team analyzed the following major container ports (Exhibit 9). Exhibit 9: Major Ports Analyzed North Atlantic South Atlantic Gulf Boston Charleston Mobile New York/New Jersey Savannah New Orleans Philadelphia Jacksonville Houston Wilmington Baltimore Virginia Port Everglades Miami No two container terminals are exactly alike, despite having a great deal in common. Port planners and terminal operators have preferences for different operating types and configurations, and those preferences change over time. Moreover, each terminal design must be adapted to its site. These differences are particularly apparent in the definition and configuration of the container yard (CY). There are frequently disparities between what they port lists as CY acreage and what the consultant team identified as working CY acreage from aerial photos. Depending on local practice, land used for chassis storage, land used for equipment maintenance, or land not presently used at all may or may not be included as CY acreage. The study team focused on land being used for container storage, so the figures in this report tend to be conservative. There are several possible ways to estimate container port capacity. All rely heavily on industry rules of thumb and a variety of assumptions as well as quantifiable engineering relationships. The general approach used in this study was chosen primarily to suit the readily available port and terminal data elements. More precise estimates are possible, but would require a much greater investment in data collection and analysis and would change frequently as ports and terminals change their facilities and operations. Marine container terminal capacity has five long-term constraints or dimensions, as illustrated in Exhibit 10. Page 10

19 Exhibit 10: Five "Dimensions" of Container Terminal Capacity CY DEPTH (AREA) STACKING HEIGHT OPERATING HOURS DRAFT BERTH LENGTH Ports and marine terminal operators are continually reviewing and adjusting their capacity, and their operating practices within that capacity. Terminals attempt to balance the five dimensions of capacity. Berths long and deep enough for the biggest expected vessel Enough berths and cranes to avoid vessel delay Enough CY acreage and density to avoid congestion Enough hours to turn the vessel Estimating container terminal capacity and utilization along the five dimensions in Ex works well for dedicated container terminals that handle vessels with on-shore gantry cranes. The methodology does not work as well with multi-purpose terminals that may also handle autos, breakbulk, neobulk, or project cargoes. and are examples of such terminals. There is not, in general, any easy way to divide terminal CY space or other attributes among the uses. Terminals that also handle Ro-Ro vessels (e.g. Seaboard at Miami) or refrigerated vessels with ship s gear (e.g. Freeport, TX) present the same problem. In such cases, the division of terminal space devoted to different cargo types is flexible, and capacity is not fixed or readily estimated. For these terminals the study team used aerial photos to approximate the current acreage devoted to gantry-served container trade. Berth length and draft determine the size of vessels the terminal can handle and how heavily they can be loaded. The terminal storage capacity depends on the area available and how high the Page 11

20 container can be stacked. The other variable is operating hours. Most terminals will operate a second shift as required to turn the vessel, but second shifts are expensive and third shifts are still more expensive. Most terminals still open the gates for just one shift. Port authorities are commonly charged by their communities, regions, or states with promoting growth of trade, economic development, and jobs. To do so, port and terminal operators attempt to build and maintain sufficient capacity for foreseeable and attainable growth. Most container terminal parameters, however, can only be adjusted in large, costly, and time-consuming commitments. Development of new terminals, expansion of berths, and dredging are multi-year, multi-million dollar projects. Expansion of existing terminal space can be undertaken more easily and inexpensively, but can still take months or years in congested seaport areas. In the shorter term, ports and terminals can add container cranes at a cost of $5-$10 million each, with a lead time of multiple months rather than multiple years. In the very short term ports and container terminals can adjust capacity along two dimensions: container yard stacking density and operating hours. These are also ordinarily the only means by which container terminals reduce capacity. Except in rare circumstances, terminal areas do not shrink, berths do not get shorter, channels do not become shallower, and the number of cranes does not decline. During seasonal or economic trade downturns, however, marine terminal operators can reduce operating hours, reduce manning during operating hours, and revert to lowdensity, low-cost container yard operations. Berth Length Berth length is published in many places. Berth length also tends to remain stable over long periods, so the sources tend to be accurate. Container terminal berths are typically 600-1,000 feet. At many ports, however, the berth face is continuous across multiple berths or even across multiple terminals (need example). Two 1,000-foot berths on a 2,000-foot face, therefore, can accommodate vessels longer than 1,000 feet although not two at a time. As most container vessels in service are less than 1,000 feet long and 1,000-foot berths are common, berth length per se has seldom been a limiting factor. That will eventually change as Post-Panamax and Super-Post-Panamax vessels become more common on the East and Gulf Coasts. The Panamax length limit is 965 feet and the width limit is 105 feet. Vessels that transit the Canal can be as large as 5000 TEU, although most are much smaller. Typical Post-Panamax vessels are feet long and 130+ feet wide. Capacities range up to 10,000 TEU. These are the vessels targeted by the Panama Canal expansion. The largest super-post-panamax vessels now being built in the 13,000-15,000 TEU range such as the Maersk E-Class, however, are 184 feet wide and feet long. Page 12

21 TEU Draft (Berth Depth) Berth depth (and the depth of the channel required to reach the berth) is also commonly published. It is seldom clear, however, whether the published figure is the authorized depth (which may or may not have been fully maintained) or a measured and maintained depth. Given the long-term outlook of the capacity estimates, it was assumed that the published depths would be maintained. It should be noted that the current draft limit for the Panama Canal is 39.5 feet, which is more restrictive than most East Coast and Gulf ports. The new Canal locks are expected to allow vessel with drafts if up to 60 feet, widths of up to 180 feet, and lengths of up to 1400 feet transit the Canal. Ports and terminal operators can provide capacity, but throughput is limited by the capacity of the vessels than call and the percentage of that capacity that is discharged and loaded. Berth depth was used to estimate the maximum vessel size that each port could accommodate. The relationship between vessel design or maximum draft and size measured in deadweight tons (DWT) or twenty-foot equivalent units (TEU) varies considerably, especially in very large vessels (e.g. over 8,000 TEU). To develop a working relationship the study team assembled a database of 350+ container vessels. A regression analysis yielded the relationship shown in Exhibit 11. Exhibit 11: Container Vessel DWT vs. TEU Capacity 16,000 Container Ship TEU vs. DWT 14,000 12,000 10,000 8,000 y = x R 2 = N=353 6,000 4,000 2, ,000 40,000 60,000 80, , , , , ,000 DWT This analysis is likely to be most reliable where there is the most data available, which is the range of 20,000 to 80,000 DWT or 2,000 to 6,000 TEU. At the upper end of the range there are fewer data available. It appears, moreover, that vessel designers have kept maximum drafts within boundaries, and that the largest vessels are becoming wider rather than deeper. Exhibit 12 compares the reported versus estimated TEU capacities where available. Significant differences in reported and estimate TEU capacities should be expected because there are substantial variations in the way the carriers themselves rate vessel capacity. A vessel can hold Page 13

22 DWT more containers if they are light or empty, so a TEU capacity based on an illustrative average of 12 metric tons per TEU will be higher than an estimate for the same vessel at 13 or 14 metric tons per TEU. These variations account for much of the disparity between vessels of similar size and tonnage but different TEU capacities. Exhibit 12: Reported vs. Estimated Container Vessel TEU 10,000 9,000 8,000 Reported TEU Est TEU 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Exhibit 13 shows the relationship between DWT and draft, where both data items were available for a given vessel. Exhibit 13: DWT vs. Draft 180, , , , ,000 80,000 60,000 40,000 20,000 y = 939e x R 2 = N= Draft (ft) Vessels rarely sail at their full design draft. To do so would entail a full load of loaded containers, which is uncommon. USACE guidance (Exhibit 14) suggests that maximum effective cargo capacity is typically about 95% of DWT. Applying this ratio to design draft versus sailing draft suggests that a vessel designed for 50 feet draft would, for example, usually Page 14

23 sail at a maximum of 47.5 feet. While not a precise relationship, this guideline was adopted for the capacity analysis. Exhibit 14: USACE Guidance on Cargo Capacity as a Percentage of DWT TABLE 28 Adjustments for Estimating Actual Vessel Capacity Short Tons of Cargo as a Percentage of Vessel DWT Vessel DWT % Cargo to DWT <20,000 90% 20,000 to 70,000 92% 70,000 to 120,000 95% >120,000 97% Source: IWR Report 91-R-13, National Economic Development Procedures Manual, Deep-Drat Navigation, November 1991, p. 77. Likewise, vessels rarely use the full channel depth. For safety reasons, pilot rules and common practice typically require a minimum of 3 feet under keel. This rule is sometimes bent, and it is common at some ports to ride the tide to gain additional clearance. Taking the long-term view again, the capacity analysis incorporates the 3-foot minimum. Together, these guidelines imply that a vessel with a 50-foot design draft would have a maximum sailing draft of 47.5 feet and would need a channel depth of 50.5 feet to maintain a 3- foot underkeel clearance. This series of relationships was used to estimate the largest vessel size in TEU that could be accommodated at each port, and the corresponding berth requirements for length and beam. Exhibit 15 shows the estimated maximum vessel size for each port and the reported average container vessel size for Most major ports receive a mix of vessels whose average size is well below the maximum. Exhibit 15: Maximum vs. Average Vessel Capacity - TEU 8,000 7,000 Avg Vessel TEU Capacity Est. Max Vessel TEU Capacity 6,000 5,000 4,000 3,000 2,000 1,000 - Boston NYNJ Delaware River Baltimore VPA Charleston Savannah Jacksonville Port Everglades Miami Mobile New Orleans Houston Page 15

24 A comparison between the estimated maximum vessel size and the record of vessel calls revealed some cases where the reported average vessel size was greater than the estimated maximum. These cases include ports with serious draft restrictions, such as the Delaware River (39, and Houston (40 ). Larger vessels can call at these ports by riding the tide or through lightloading. (Note some of the estimates need to be double-checked) Exhibit 16 compares the estimated TEU capacity of the average vessel with the average TEU discharged and loaded at each port. The theoretical maximum is 200% of vessel capacity: a vessel completely emptied and reloaded. Exhibit 16: Vessel Size and Load Comparison 4,500 4,000 3,500 3,000 Avg Vessel TEU Capacity Avg Vessel Discharge and Load 2,500 2,000 1,500 1, Boston NYNJ Delaware River Baltimore VPA Charleston Savannah Jacksonville Port Everglades Miami Mobile New Orleans Houston As vessel sizes grew, concern increased over the potential for load centering, the expected practice of using large vessels to serve large ports and smaller feeder vessels (or inland truck or rail service) to serve smaller ports. The practice was not widely used in part because carriers formed VSAs and alliances and continued direct service to small ports under competitive pressure. The data in Exhibit 16, however, suggest that load centering or similar practices may be limiting volumes through Boston, Philadelphia, Baltimore, and Portland. These ports are all adjacent to major competitors. PANYNJ competes with Boston and Philadelphia; Virginia competes with Baltimore, and Seattle and Tacoma compete with Portland. Philadelphia, Baltimore, and Portland also have the competitive disadvantage of being located some distance from the open ocean. The analysis provides two different perspectives on berth capacity. The Maximum Vessel Basis, which estimates the potential throughput using the largest vessel for the available draft and the 2007 ratio of discharge/load total to vessel capacity. In Exhibit 17, an example from Boston, the nominal maximum vessel size is 5,183 TEU based on an available Page 16

25 draft of 45 feet and a corresponding sailing draft of 42 feet. The current average vessel capacity (2007) is estimated at 3,675 TEU, with a 37% discharge/load rate. At the same rate, a 5,183 TEU vessel would load and discharge 1,930 TEU at Boston. Based on a maximum of 260 calls per year per berth (5 per week) and a sustainable estimate of 208 (80%) per berth. The annual TEU capacity would be 803,012. Exhibit 17: Berth Capacity - Maximum Vessel Basis Example Berth Capacity - Max Vessel Basis Conley Port Total Berths 2 2 Berth length 2, Berth Depth - Feet Max Sailing Draft Corresponding Design 95% Corresponding DWT 63,678 63,678 Nominal Max Vessel TEU 5,183 5,183 Corresponding Vessel Length - Feet 1,000 1,000 Vessel Spacing (Beam) Length requirement 1,140 1,140 Available Berths for Max Vessel Port average TEU/container TEU 220, ,339 Avg. TEU/Vessel 1,369 1,369 Avg. Vessel DWT 45,571 45,571 Average Est. Vessel Capacity TEU 3,675 3,675 Average Discharge & Load % 37% 37% Average TEU per Max Vessel 1,930 1,930 Max annual calls per berth Sustainable Calls per 80% Total Sustainable Vessel Calls Annual Berth Capacity TEU 803, , Annual TEU 208, ,626 Berth Utilization, Max Vessel Basis 26% 26% Alternatively, the berth capacity can be more conservatively estimated using the current average vessel size and simply maximizing the number of calls (Exhibit 18). Exhibit 18: Berth Capacity Estimate- Vessel Call Basis Example Berth Utilization - Vessel Call Basis Conley Port Total Max Calls per berth 5 / wk Available Berths Sustainable Calls per 80% Total Sustainable Vessel Calls Vessel calls Berth Utilization 39% 39% Container Yard Storage Density (Stacking Height) Marine container terminal operators adjust container yard (CY) storage density and stacking height by reconfiguring the CY, changing handling equipment, and varying container storage practices. Typical handling equipment types are shown in Exhibit 19. Page 17

26 Exhibit 19: Container Yard Handling Equipment Types TOP-PICK EMPTY HANDLER REACH STACKER SIDE LOADER STRADDLE CARRIER RUBBER-TIRED GANTRY (RTG) RAIL-MOUNTED GANTRY (RMG) Exhibit 20 displays the progression of terminal handling methods from lowest to highest density. Virtually all U.S. marine container terminals use a mix of the handling methods shown in Exhibit 19 and Exhibit 20, and vary that mix to provide sufficient capacity at minimum cost. Terminal operators gravitate to low-density, low-cost operating methods whenever possible. Exhibit 20: Progression of Terminal Handling Methods DENSITY TYPE COMMENT VERY LOW DENSITY LOW DENSITY MID DENSITY HIGH DENSITY Ro/Ro or Ship s gear Wheeled Combination Dedicated Wheeled Wheeled/Top-pick Top-pick/Wheeled Straddle/Top-pick/Wheeled RTG/Top-pick/Wheeled Straddle Carrier RTG Very small, barge, specialized Small, mixed, legacy Older terminals when new Transition temrinals Transition temrinals Hybrid terminal Dominant hyrbid type NIT Virginia No US Example VERY HIGH DENSITY Pure RMG APM Portsmouth Faced with a need to accommodate more trade, terminals move progressively up the density scale. Terminal operators start increasing density by stacking empty containers instead of leaving them parked on chassis. Empties can be handled with inexpensive equipment and stacked first-in/last-out since they are largely interchangeable. Page 18

27 As additional capacity is required, terminal operators begin stacking loaded export containers. Export containers typically build up over the week prior to vessel arrival and need not be accessed until it is time to load that vessel. Loaded containers are heavier than empties, however, and must be accessed in a sequence tied to vessel loading plans. Loaded export storage therefore usually requires more expensive RTGs or straddle carriers. Terminal operators typically leave loaded import containers parked on chassis ( wheeled ) as long as possible to both minimize handling cost and maximize responsiveness to customer needs. When loaded imports are eventually stacked, they require RTG or straddle carriers for flexible access. Containers with special requirement are rarely stacked, and most terminals reserve space to keep such movements on chassis. Specialized movements include refrigerated containers, containers with hazardous cargo, over-size or over-weight containers, tank containers, and containers held for CBP inspection. In peak periods, such as the annual holiday import surge, terminals shift the balance of operations to higher densities. In slack periods, the operators park more containers on chassis. In protracted downturns, such as the current recession, terminal operators will idle costly handling equipment and revert to wheeled operations, even on space configured for stacking (Exhibit 21). Exhibit 21: Wheeled Containers on RTG Layout IDLE RTGs EMPTIES STACKED WITH TOP-PICKS WHEELED CONTAINERS PARKED ON RTG LAYOUT The CY capacity estimation method used in this study is necessarily a compromise, based on a snapshot of current stacking density. As shown in the example below, the team used the most recent aerial photos available on Google Earth and estimated the CY acreage configured for each storage density category. The precision of this method is necessarily limited in several respects. The latest available aerial photos vary from a few months old to 2 to 3 years old, and terminal configurations and uses can change on short notice. Page 19

28 Aerial estimates of acreage and uses are imprecise although probably sufficiently accurate for high-level capacity estimates. The container yard capacities were estimated by dividing the CY acreage by handling type and applying the storage factors for each to derive estimated TEU slot totals. The typical storage densities for terminal handling methods are shown in Exhibit 22. Exhibit 22: Typical CY Storage Densities CY Storage Method TEU Slots per Acre Wheeled Chassis 80 Grounded Straddle Carrier 160 Grounded Stacked 200 Grounded RTG 300 Grounded RMG 360 The focus on capacity, rather than current throughput, led the team to rely more on terminal configuration rather than on current usage or estimates. For example, terminal space configured to use RTGs was assigned an inherent capacity of 300 TEU per acre even though it may currently be used for wheeled storage at 80 TEU per acre. This estimation practice is also necessarily imprecise as the ability to use the full inherent capacity of may depend on the availability of handling equipment, operating systems, and other factors beyond the scope of this study. Exhibit 23 shows an example of CY acreage allocation in which the 79 total CY acres were divided into 20 acres of wheeled storage at 80 TEU/acre, 43 acres of straddle carrier operation at 160 TEU/acre, 8 acres of stacked storage at 200 TEU/acre, and 8 acres of RTG storage at 300 TEU per acre for a total storage capacity of 12,480 TEU slots (Exhibit 24). If the terminal needed more CY capacity, the operator would like stack more containers or expand RTG operations at the expense of low-density wheeled storage. The average of 158 slots per acre is between the low density of wheeled operations and the higher density of stacked or RTG operations. Exhibit 23: CY Acreage Example: Port of New Orleans Terminal Space Napolean Port Total Total Acres Wheeled CY Acres Straddle Carrier CY Acres Stacked CY Acres 8 8 RTG CY Acres 8 8 RMG CY Acres - Total CY Acres On-Dock Rail Acres Other Non-CY Acres Net Berth/Gate/Yard Acres Undeveloped Acres - - Page 20

29 Exhibit 24: CY Capacity Example: Port of New Orleans Container Yard Capacity Napolean Port Total Wheeled Chassis Slots 1,600 1,600 Grounded Straddle Carrier Slots 6,880 6,880 Grounded Stacked Slots 1,600 1,600 Grounded RTG Slots 2,400 2,400 Grounded RMG Slots - - TEU Storage Slots 12,480 12,480 Avg TEU Slots/CY Acre Maximum Annual Slot Turnover Maximum Annual CY TEU Capacity 873, ,600 Sustainable CY TEU 80% 698, , Annual TEU 313, , TEU per CY Slot CY Capacity Utilization 45% 45% As Exhibit 24 shows, the team estimated the maximum annual TEU capacity based on a maximum annual slot turnover of 70 turns annually, an aggressive average of more than one turn per week and equivalent to an average container dwell time of slightly over 5 days. While theoretically possible, particularly in periods of peak demand, operation at this level of intensity is unlikely to be sustainable day-in and day-out. Moreover, if this level of density were routine there would be no reserve capacity to handle the inevitable trade surges. The study team therefore also estimated sustainable CY TEU capacity at 80% of the maximum, following a common industry rule-of-thumb. There is only one major container terminal at the Port of New Orleans, so in the examples above the port total is the same as the Napoleon terminal total annual TEU counts were compared with the estimated sustainable TEU capacity to estimate the annual TEU per storage slot (25 in the example) and average annual CY capacity utilization (45% in the example). Under greater pressure, such as was experienced in Southern California before the current recession, marine terminals can also increase capacity by reducing container dwell times. By shortening free time allowances and raising or vigorously enforcing charges for excess dwell time, terminal operators have succeeded in reducing dwell times for import loads and therefore increasing storage turnover. On the export side, terminals can limit the time in advance of vessel arrival during which export containers will be accepted. To reduce the dwell time of empty containers, terminal operators and their ocean carrier clients can move empties to off-terminal depots or return leased containers to leasing company depots. Operating Hours Port terminals occasionally vary operating hours to handle additional vessels or cope with trade surges. Marine container terminals typically maintain full cargo handling and gate functions for a single shift five to six days per week. Additional shifts are often operated to handle arriving or departing vessels and complete loading or unloading, even if full gate and truck handling functions are not supported. In peak periods, terminals will extend gate hours to handle inbound and outbound truck movements. At the busiest ports, such as NYNJ or LALB, extended age hours are a regular feature. Page 21

30 Labor agreements specify the options available to terminal operators and the attendant costs. Marine terminal operators attempt to match labor supply and costs with vessel and trade requirements. The rigidities of these agreements make it difficult and costly for terminal operators to extend operating hours or to match labor supply closely with trade and vessel requirements. So although container terminal throughput and capacity could be greatly increased by adding shifts, that option is usually the last choice for any extended period. Vessels and Crane Use Container terminal throughput is limited by the size and utilization of the vessels that call. As Exhibit 16 suggests, the average vessel that calls at most ports discharges and loads substantially less than its full capacity. There are two basic reasons for this disparity. Vessels almost invariably call at multiple U.S. ports on each voyage, and the vessel s total cargo discharge and load is split among those ports. Ocean carriers, like ports and terminals, offer and deploy sufficient capacity to accommodate growth as well as current cargo volumes. Only in peak periods of peak years will vessels be completely full. The ability to handle a given vessel size depends on the berth length and draft available at the terminal. The ability to handle the cargo from that vessel depends on the number of cranes available, the hourly throughput capability of those cranes, and the hours those cranes are available in a day or week. A typical marine terminal, such as the one shown in Exhibit 25, might have two berths and four cranes. This configuration gives the terminal operator the flexibility to assign from one to four cranes to a vessel as required. as the vessel discharge and load averages increase, the number of cranes may limit the number of vessels that can be handled simultaneously and therefore annually. As this limit is approached the port or terminal operator will add cranes. Page 22

31 Exhibit 25: Typical Two-Berth/Four-Crane Terminal The primary goal of terminal operators is to service the vessel or schedule and at minimum cost. The number of cranes installed and used is determined primarily by the need to turn the vessel, with annual crane productivity a secondary consideration. This set of priorities results in relatively low container crane utilization, as suggested by Exhibit 26. A vessel is far more costly to own and operate than the cranes that serve it, so crane utilization is effectively sacrificed to vessel utilization. Exhibit 26: Container Cranes and Utilization Container Cranes N. Atlantic S. Atlantic East & Gulf Coast Gulf Ports Ports* Ports Ports Cranes Cranes per Berth Annual Crane Capacity - TEU 29,640,002 19,177,987 6,653,344 55,471,333 Reserve Crane Capacity - TEU 20,895,164 12,501,742 4,423,466 37,820,372 Annual TEU/Crane 76,709 86,704 82,588 78,799 Annual Moves/Crane 43,140 48,739 47,017 45,532 Crane Utilization 30% 35% 34% 32% Page 23

32 III. North Atlantic Ports North Atlantic Summary Exhibit 27 summarizes estimates of North Atlantic port capacity and utilization along multiple dimensions. North Atlantic container trade is dominated by the Port Authority of New York and New Jersey (60% of the 2008 TEU total) and the Port of Virginia (Virginia Port Authority, 24% of the 2006 TEU total). The Ports of Boston and Philadelphia (Delaware River) must compete with NYNJ. The other Delaware River port, Wilmington, DE, is a specialized facility handling imported bananas. Baltimore must compete with the Port of Virginia In addition to its own seaport terminals, VPA operates the Virginia Inland Port, a satellite terminal in Baltimore s market area. Philadelphia and Baltimore have the additional competitive disadvantage of being located a significant distance from the open ocean with channel draft restrictions. The new APM Portsmouth terminal is shown separately. Exhibit 27: North Atlantic Capacity and Utilization Summary Container Yard Boston NYNJ Delaware River Baltimore VPA APM Portsmouth N. Atlantic Ports* 2008 TEU 208,626 5,265, , ,000 2,083,278 na 8,744,838 Gross Acres 101 1, ,227 CY Acres ,542 CY/Gross Ratio 49% 59% 29% 50% 42% 34% 48% Annual CY Capacity - TEU 666,400 8,772, ,000 2,634,240 3,126,200 1,659,000 17,698,240 Reserve CY Capacity - TEU 457,774 3,507, ,124 2,021,240 1,042,922 1,659,000 10,612,402 Annual TEU/Gross Acre 2,066 3,935 1,369 1,338 3,064 na 2,918 Annual TEU/CY Acre 4,258 6,724 4,791 2,689 7,335 na 5,973 Est. CY TEU Slots 11, ,320 15,000 47,040 44,660 23, ,620 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 31% 75% 68% 23% 83% na 55% Container Cranes Boston NYNJ Delaware APM N. Atlantic Baltimore VPA River Portsmouth Ports* Cranes Cranes per Berth Annual Crane Capacity - TEU 968,800 14,616,000 2,016,000 3,471,202 7,056,000 1,512,000 29,640,002 Reserve Crane Capacity - TEU 760,174 9,350,942 1,441,124 2,858,202 4,972,722 1,512,000 20,895,164 Annual TEU/Crane 52,157 90,777 71,860 38,313 74,403 na 76,709 Annual Moves/Crane 30,148 50,432 39,922 24,723 41,335 na 43,140 Crane Utilization 22% 36% 29% 18% 30% na 30% Berths and Vessels Boston NYNJ Delaware APM N. Atlantic Baltimore VPA River Portsmouth Ports* Berths Berth Feet 2,000 27,421 5,300 8,819 11,460 3,200 58,200 Annual Vessel Calls (2007) 161 2, ,940 na 5,576 Annual Vessel Calls per Berth (2007) na 80 Berth Utilization - Vessel Call Basis 39% 45% 30% 21% 67% na 39% Reserve Berth Capacity - Vessel Calls na 8884 Annual TEU per Berth 104, , ,975 61, ,328 na 164,997 Annual TEU/Foot of Berth na 159 Average Vessel Capacity - TEU 3,675 3,895 2,482 3,895 3,895 na 3,762 Average TEU per Vessel (2007) 1,369 2,079 1,146 2,346 1,097 na 1,568 Avg. Vessel Ute. - % Discharge/Load 37% 53% 46% 60% 28% na 42% Berth Capacity - Avg. Vessel Basis 569,323 11,675,078 1,430,333 4,392,000 2,510,155 na 20,576,889 Berth Utilization - Avg. Vessel Basis 37% 45% 40% 14% 83% na 42% Reserve Berth Capacity - Avg. Vessel Basis 360,697 6,410, ,457 3,779, ,877 na 11,832,051 Reserve Berth Capacity - Max. Vessel Basis 594,386 17,125,247 1,396,227 7,809,918 2,406,520 na 29,332,298 Page 24

33 As the summary data show, reserve capacity in the North Atlantic is substantial, in part because of the shear size of NYNJ and Virginia (particularly of the APM terminal is included) and in part because Boston, Philadelphia, and Baltimore are underutilized. Exhibit 28 displays the maximum reported draft available at the North Atlantic ports, and corresponding estimated maximum vessel TEU capacity. These can be contrasted with the actual vessel averages and TEU volumes per vessel, which are much lower in some cases. The listed drafts, however, are not available at all of the NYNJ, Baltimore, and VPA terminals, so some of those terminals remain draft-constrained. Exhibit 28: North Atlantic Drafts and Vessel Data Berths and Vessels Boston NYNJ Delaware River Baltimore VPA APM Portsmouth Nominal Maximum Channel/Berth Draft Feet Estimated Maximum Vessel TEU 5,183 7,470 3,420 7,470 6,967 7, Average Vessel TEU 3,675 3,895 2,482 3,895 3,895 na 2008 Average Vessel Discharge/Load 1,369 2,079 1,146 2,346 1,097 na Port of Boston Overview Container activity at the Port of Boston is centered at the 101-acre Conley Container Terminal (Exhibit 29). The terminal has four Post-Panamax container cranes and 2000 feet of berthing space. The Port of Boston has direct access to the Atlantic Ocean. The terminal is operated by The Massachusetts Port Authority (Massport), an independent public authority which develops, promotes, and manages seaport infrastructure in Massachusetts. Containers were formerly handled at the 65-acre Moran Terminal, which now has been repurposed as an automobile handling terminal. Exhibit 29: Port of Boston Conley Container Terminal Source: Google Earth Image Date April 17, 2008 Page 25

34 Conley terminal s peak year was 2007, when 220,000 TEU were handled. Exhibit 30 provides a profile of the Conley terminal. Exhibit 30: Conley Container Terminal Profile CONTAINER TERMINAL PROFILE Profle date: Sept. 25, TEU: Port: Boston Total Acres: 101 Terminal: Conley CY Acres: 49 Terminal Type: RTG/Top-pick/Wheeled On-Dock Rail Acres: 0 Address: First & Farragut Rd. Other Non-CY Acres: 17 Boston MA Net Terminal Acres (BGY): 84 Operator (Stevedore): MassPort Berths: 2 Contact Name: Total Berth Length: 2,000 Telephone Number: (617) Channel Depth (MLLW): 45 Fax Number: (617) Berth Depth (MLLW): 45 Address: Panamax Container Cranes: Port Website: Post-Panamax Container Cranes: 4 Terminal Website: Inbound Gates: Outbound Gates: Reversible Gates: Total Gates: CY Rail-Mounted Gantries: 8 CY Rubber-Tired Gantries: 4 CY Side or Top Loaders: CY Straddle Carriers: 12 CY Reach Stackers: On-Line Access System: GYAS Total CY Lift Machines 0 Appointment System: On-site M&R (yes/no): Reefer Plugs/Slots: 160 On-dock Rail (yes/no): No Terminal Hours: Gate Hours: Monday - Friday, 7 a.m-5 p.m. Last inbound truck, 4:15pm Notes: On July 22, 2009 Massport launched a web-based Gate and Yard Automated System (GYAS) at Conley Terminal. This system, designed by Maher Terminal Logistics Systems. This software also gives Massport an automated approach to yard management, providing (Diagram) Page 26

35 Container Yard Storage Capacity Exhibit 31 summarizes land use at Conley Terminal. The total area for the port s container operations is 101 acres. The CY to gross ratio is estimated at 49%. Conley does not have ondock rail. Exhibit 31: Conley Terminal Land Use Port Land Use Conley Port Total Gross Acres CY Acres Rail Acres - - Other Non-CY Acres Net Berth/Gate/Yard Acres CY/Gross Ratio 49% 49% Exhibit 32 applies standard CY storage factors to the port acreage. The port currently has a mix of wheeled and stacked CY operations. The CY area has been estimated to be 49 acres producing 11,900 TEU storage slots. Annual CY sustainable TEU capacity is estimated to 666,400 TEU. This produces annual utilization of 31% relative to 2008 volume. Exhibit 32: Conley Terminal Near Term CY Capacity Container Yard Capacity Conley Port Total Wheeled Chassis Slots Grounded Straddle Carrier Slots - - Grounded Stacked Slots 1,200 1,200 Grounded RTG Slots 9,900 9,900 Grounded RMG Slots - - TEU Storage Slots 11,900 11,900 Avg TEU Slots/CY Are Maximum Annual Slot Turnover Maximum Annual CY TEU Capacity 833, ,000 Sustainable CY TEU 80% 666, , Annual TEU 208, , TEU per CY Slot CY Capacity Utilization 31% 31% In the long term, Conley could increase CY capacity by shifting the acreage used for wheeled and stacked storage to RTG storage. Crane Capacity Exhibit 33 provides a summary of Conley Terminal cranes and an estimate of crane capacity. The port provides 4 cranes for use by its tenants. Estimated annual crane capacity at the port is 968,000 TEU with 2008 utilization at 22%. The utilization estimate may be somewhat overstated because the port has a sizeable Ro-Ro operation which is in the TEU count but does not utilize container cranes for loading and unloading. Page 27

36 Exhibit 33: Conley Terminal Near Term Crane Capacity Crane Capacity Conley Port Total Cranes 4 4 Available Crane Hours per Day Current Annual Operating Days Current Annual Hours/Crane 4,000 4,000 Annual Available Crane Hours 16,000 16,000 Sustainable 80% 12,800 12,800 Avg. TEU/Available Crane-hour Avg. Annual TEU/Crane 52,157 52,157 Crane Capacity, Moves/hour Sustainable 80% Port average TEU/container Crane Capacity TEU/hour Annual Crane Capacity 968, ,800 Current Annual TEU 208, ,626 Current Crane Utilization 22% 22% The four cranes at Conley serve two berths, which are in fact a continuous berth face of 2,000 feet. The terminal can handle two vessels simultaneously with two cranes each at a single larger vessel with 3-4 cranes. Berth Capacity Conley berth capacity in TEU for the maximum vessel size is summarized in Exhibit 34. The analysis estimates near term berth capacity at 803,012 TEU and 2008 berth utilization at 26%. Page 28

37 Exhibit 34: Boston Near Term Berth Capacity Maximum Vessel Basis Berth Capacity - Max Vessel Basis Conley Port Total Berths 2 2 Berth length 2, Berth Depth - Feet Max Sailing Draft Corresponding Design 95% Corresponding DWT 63,678 63,678 Nominal Max Vessel TEU 5,183 5,183 Corresponding Vessel Length - Feet 1,000 1,000 Vessel Spacing (Beam) Length requirement 1,140 1,140 Available Berths for Max Vessel Port average TEU/container TEU 220, ,339 Avg. TEU/Vessel 1,369 1,369 Avg. Vessel DWT 45,571 45,571 Average Est. Vessel Capacity TEU 3,675 3,675 Average Discharge & Load % 37% 37% Average TEU per Max Vessel 1,930 1,930 Max annual calls per berth Sustainable Calls per 80% Total Sustainable Vessel Calls Annual Berth Capacity TEU 803, , Annual TEU 208, ,626 Berth Utilization, Max Vessel Basis 26% 26% The estimated maximum vessel size of 5,183 TEU is based on the reported 45-foot draft. Larger vessels could call at Conley, but not fully loaded. Vessels currently calling Conley discharge and load an average of 37% of their TEU capacity. That ratio is most likely influenced by the vessel s need to call at other ports. The analysis implicitly assumes that the ratio will remain constant, and that cargo growth would be accommodated in larger vessels rather than as larger loads in existing vessels. Berth capacity on a vessel call basis is summarized in Exhibit 35. This approach generates a berth capacity estimate of 416 calls and 2007 berth utilization of 39%. Exhibit 35: Conley 2007 Berth Capacity Vessel Call Basis Berth Utilization - Vessel Call Basis Conley Port Total Est. Sustainable Calls per berth 5 / wk Available Berths Sustainable Calls per 80% Total Sustainable Vessel Calls Vessel calls Berth Utilization 39% 39% Capacity and Productivity Summary Exhibit 36 summarizes the capacity and productivity analysis for CY space, container cranes, and vessel berths for Conley Terminal. This analysis estimates CY utilization at 31%, crane Page 29

38 utilization at 22%, and berth utilization at 31% on a vessel call basis and 26 % on a maximum vessel basis. These estimates suggest that the port has substantial inherent capacity to handle growth. Exhibit 36: Conley Terminal Near Term Capacity and Productivity Summary Terminal Space Conley Boston 2008 TEU 208, ,626 Gross Acres CY Acres CY/Gross Ratio 49% 49% Annual CY Capacity - TEU 666, ,400 Annual TEU/Gross Acre 2,066 2,066 Annual TEU/CY Acre 4,258 4,258 Est. CY TEU Slots 11,900 11,900 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 31% 31% Container Cranes Conley Boston Cranes 4 4 Cranes per Berth Annual Crane Capacity - TEU 968, ,800 Avg. Moves/Available Crane-Hour Annual TEU/Crane 52,157 52,157 Annual Moves/Crane 30,148 30,148 Annual Vessel Calls/Crane (2007) Crane Utilization 22% 22% Berths and Vessels Conley Boston Berths 2 2 Berth Feet 2,000 2,000 Annual Vessel Calls per Berth (2007) Berth Utilization - Vessel Call Basis 39% 39% Annual TEU per Berth 104, ,313 Annual TEU/Foot of Berth Average Vessel Capacity - TEU 3,675 3,675 Est. Max. Vessel Capacity - TEU 5,183 5,183 Avg. vs. Max. Vessel Capacity 71% 71% Average TEU per Vessel (2007) 1,369 1,369 Avg. Vessel Utilization - % Discharge/Load 37% 37% Berth Capacity - Avg. Vessel Basis 569, ,323 Berth Utilization - Avg. Vessel Basis 37% 37% Avg. Discharge/Load per Max. Vessel 1,930 1,930 Berth Capacity - Max. Vessel Basis 803, ,012 Berth Utilization - Max. Vessel Basis 26% 26% Port of New York and New Jersey Overview The Port of New York and New Jersey has six container terminals under the Port Authority of New York and New Jersey (PANYNJ). The Port Authority is a bi-state agency. Exhibit 37 is a map of the region identifying the major marine container terminal facilities. Page 30

39 Exhibit 37: Port of New York and New Jersey Source: Group 2010, Data available from the Port Authority Web Site. Depot locations are available on the marine terminal and stevedore websites. The Port of New York and New Jersey (PANYNJ) is the largest East Coast Port, handling more than 5 million TEU in While most of the import cargo using the port is destined for consumption in the New York Metropolitan area 1, the port competes successfully for discretionary cargo moving by motor carrier to Quebec, Ontario, New England, and Pennsylvania. Rail service moves cargo to more distant Midwestern locations such as Columbus, Detroit, and Chicago. At NYNJ loads and empties are grounded to a greater degree than at other ports. The marine terminals operate auxiliary chassis and empty container depots to simplify and expedite gate operations as well as add CY capacity. The trend away from wheeled operations, initiated about a decade ago, lead to innovations in chassis management such as cooperative chassis pools. Dredging is underway to produce 50 drafts at the major PANYNJ terminals. Air draft on the bridge linking Bayonne and Staten Island is a future constraint for the largest container vessels. The air draft beneath the Bayonne Bridge varies with the tide between 151 and 156 feet. As more Port-Panamax and Super-Post-Panamax vessels enter the world fleet, the frequency with which the Bridge will be a barrier for container terminals west of the Bridge will increase. Red Hook (Exhibit 38) is a legacy complex of container, bulk, break bulk, and warehouse facilities. The terminal is operated by American Stevedoring, Inc. Located at the foot of Hamilton Avenue in Brooklyn, the Red Hook terminal has a total of 80 acres for all of its operations. The container portion of the terminal is estimated to be 54 acres with 30 acres of CY space. The Red Hook terminal operates two berths for all of its operations with a total berth 1 Precise numbers are not available. estimates this at approximately 80% remains in the New York Metropolitan area, with up to 5% moving by motor carrier to Canada, 5-10% moving by rail, and the remainder by motor carrier to nearby states. Page 31

40 length of 2,080 feet. In Port Newark, ASI operates a 20-acre barge facility which is linked to the main Brooklyn terminal by a cross-harbor barge service. Exhibit 38: Red Hook Marine Terminal CONTAINER TERMINAL PROFILE Profle date: February 15, TEU: Port: PA of New York and New Jersey Total Acres: 80 Terminal: Red Hook Container Terminal CY Acres: 30 Terminal Type: Top-pick Combination On-Dock Rail Acres: 0 Address: 70 Hamilton Ave. Other Non-CY Acres: 26 Brooklyn, NY Net Terminal Acres: 54 Operator (Stevedore): American Stevedoring Berths: 2 Contact Name: Total Berth Length: 2,080 Telephone Number: (718) Channel Depth (MLLW): 42 Fax Number: (718) Berth Depth (MLLW): 42 Address: Panamax Container Cranes: 4 Port Website: Container Cranes: Terminal Website: CY Rail-Mounted Gantries: Inbound Gates: 1 CY Rubber-Tired Gantries: Outbound Gates: 1 CY Side or Top Loaders: Yes Reversible Gates: CY Straddle Carriers: Total Gates: 2 CY Reach Stackers: On-Line Access System: Total CY Lift Machines 0 Appointment System: On-site M&R (yes/no): Reefer Plugs/Slots: 72 On-dock Rail (yes/no): Terminal Hours: 8am-4pm M-F Gate Hours: Notes: Entrance Gates: Foot of Hamilton Avenue. Cranes: four active container cranes 1 Star-50-ton, 1 Kone-50- ton, 2 Paceco-40-ton. 2 Liebherr-60-ton Toploaders-45-tons. Global Marine Terminal (Exhibit 39) is a dedicated container terminal using a combination of RTG, top-pick, and wheeled storage. The terminal has a total of 100 acres with 64 acres for CY storage. Global operates two container berths with a total berth length of 1,800 feet. The Global terminal is operated by Global Terminal & Container Services, LLC. Work is underway to produce 50 berth drafts at Global. In addition Global Marine Terminal is the one New Jersey facility which is not affected by air draft restrictions imposed by the Bayonne Bridge. Page 32

41 Exhibit 39: Global Marine Terminal CONTAINER TERMINAL PROFILE Profle date: February 15, TEU: Port: Jersey City Total Acres: 100 Terminal: Global Marine Terminal CY Acres: 64 Terminal Type: RTG/Top-pick/Wheeled Combination On-Dock Rail Acres: 0 Address: 302 Port Jersey Blvd. Other Non-CY Acres: 15 Jersey City, NJ Net Terminal Acres: 85 Operator (Stevedore): Global Terminal & Container Services, Inc Berths: 2 Contact Name: Total Berth Length: 1,800 Telephone Number: (201) Channel Depth (MLLW): 43 Fax Number: (201) Berth Depth (MLLW): 40 Address: d.brady@global-terminal.com Panamax Container Cranes: 0 Port Website: Container Cranes: 6 Terminal Website: CY Rail-Mounted Gantries: Inbound Gates: 9 CY Rubber-Tired Gantries: 10 Outbound Gates: 5 CY Side or Top Loaders: 9 Reversible Gates: CY Straddle Carriers: Total Gates: 14 CY Reach Stackers: On-Line Access System: Gate Cam Total CY Lift Machines 19 Appointment System: On-site M&R (yes/no): Yes Reefer Plugs/Slots: 212 On-dock Rail (yes/no): No Terminal Hours: 6am-4pm M-F Gate Hours: Notes: Entrance Gates: Port Jersey Boulevard. Cranes: 6 Quayside Container Cranes; 4 ZPMC -50 ton Post-Panamax container cranes and 2 40 ton Starporter container Cranes. Mobile/Chassis container repair vans, 10 Chassis repair bays, 5 roadability lanes. Dredging is underway to provide 50' berth capability. (Diagram) Port Newark Container Terminal (PNCT) (Exhibit 40) is a dedicated container terminal using a combination of RTG, top-pick, and wheeled storage. The terminal has a total of 176 acres with 139 acres for CY storage. PNCT operates six container berths with a total berth length of 4,400 feet. PNCT is operated by Ports America. The terminal operates ExpressRail Port Newark, as well an auxiliary container yard located on nearby Marsh St. Page 33

42 Exhibit 40: Port Newark Container Terminal (PNCT) CONTAINER TERMINAL PROFILE Profle date: February 15, TEU: Port: Port Newark Total Acres: 176 Terminal: PNCT CY Acres: 76 Terminal Type: Straddle/Top-pick/Wheeled On-Dock Rail Acres: 0 Address: 241 Calcutta St. Other Non-CY Acres: 41 Port Newark, NJ Net Terminal Acres: 135 Operator (Stevedore): PNCT a Ports America Subsidiary Berths: 6 Contact Name: Total Berth Length: 4,400 Telephone Number: (973) Channel Depth (MLLW): 50 Fax Number: (973) Berth Depth (MLLW): 50 Address: Panamax Container Cranes: 0 Port Website: Container Cranes: 9 Terminal Website: CY Rail-Mounted Gantries: Inbound Gates: 8 CY Rubber-Tired Gantries: Outbound Gates: 7 CY Side or Top Loaders: 12 Reversible Gates: CY Straddle Carriers: 72 Total Gates: 15 CY Reach Stackers: 6 On-Line Access System: Navis Total CY Lift Machines 90 Appointment System: On-site M&R (yes/no): Yes Reefer Plugs/Slots: 335 On-dock Rail (yes/no): No Terminal Hours: Gate Hours: Monday-Friday (August 2009) 6 to 6 Notes: Entrance Gates: Calcutta Street (Main Gate). Recent change closed Mohawk, Panama, and Maracaibo streets to truck traffic. The terminal is now using a remote CY on Kellog Street. (Diagram) Maher Terminal (Exhibit 41) is a dedicated container terminal using a combination of RTG and seven-high top-pick empty container handlers. The terminal has a total of 445 acres with 273 acres for CY storage. Maher operates eight container berths with a total berth length of 10,128 feet. Maher is operated by Maher Terminals, LLC. The terminal shares operation of ExpressRail Port Elizabeth with APM. The facility is totally grounded and chassis are stored in a nearby depot. Empty containers are permitted on the terminal only with repositioning bookings. Page 34

43 Exhibit 41: Maher Terminal CONTAINER TERMINAL PROFILE Profle date: February 15, TEU: Port: Port Elizabeth Total Acres: 445 Terminal: Maher CY Acres: 273 Terminal Type: Straddle/Top-pick On-Dock Rail Acres: 41 Address: 1020 N. Fleet St. Other Non-CY Acres: 72 Elizabeth, NJ Net Terminal Acres: 332 Operator (Stevedore): Maher Terminals, Inc. Berths: 8 Contact Name: Total Berth Length: 10,128 Telephone Number: (908) Channel Depth (MLLW): 50 Fax Number: (908) Berth Depth (MLLW): 50 Address: Panamax Container Cranes: 6 Port Website: Container Cranes: 9 Terminal Website: CY Rail-Mounted Gantries: Inbound Gates: 28 CY Rubber-Tired Gantries: Outbound Gates: 25 CY Side or Top Loaders: Yes Reversible Gates: CY Straddle Carriers: Yes Total Gates: 53 CY Reach Stackers: Yes On-Line Access System: Total CY Lift Machines 0 Appointment System: On-site M&R (yes/no): Reefer Plugs/Slots: On-dock Rail (yes/no): Yes Terminal Hours: M-F 6am - 10pm Gate Hours: Notes: Depth: ft. Cranes: 6 Paceco 30-ton, 2 Paceco Post Panamax 50-ton. 5 Post Panamax 60- ton. Stackers 15-ton, 30-ton, and 5-ton. Toploader 40-ton. ExpressRail Elizabeth is adjacent. Grounded operation. Relies on remote empty con APM Elizabeth Marine Terminal (Exhibit 42) is a dedicated container terminal using a combination of RTG, top-pick and wheeled storage. The terminal has a total of 350 acres with 192 acres for CY storage. APM Elizabeth operates five container berths with a total berth length of 6,001 feet. APM Elizabeth is operated by APM Terminals. The terminal shares operation of ExpressRail Port Elizabeth with Maher. Page 35

44 Exhibit 42: APM Elizabeth Marine Terminal CONTAINER TERMINAL PROFILE Profle date: February 15, TEU: Port: Port Elizabeth Total Acres: 350 Terminal: APM CY Acres: 192 Terminal Type: RTG/Top-pick/Wheeled On-Dock Rail Acres: 0 Address: 5080 Lester St. Other Non-CY Acres: 61 Elizabeth, NJ Net Terminal Acres: 289 Operator (Stevedore): APM Terminals Berths: 5 Contact Name: Total Berth Length: 6,001 Telephone Number: Channel Depth (MLLW): 45 Fax Number: Berth Depth (MLLW): 50 Address: Panamax Container Cranes: 3 Port Website: Container Cranes: 12 Terminal Website: CY Rail-Mounted Gantries: Inbound Gates: 19 CY Rubber-Tired Gantries: 32 Outbound Gates: 9 CY Side or Top Loaders: 23 Reversible Gates: 3 CY Straddle Carriers: Total Gates: 31 CY Reach Stackers: 8 On-Line Access System: Navis Express and Navis Sparcs Total CY Lift Machines 63 Appointment System: On-site M&R (yes/no): Reefer Plugs/Slots: 1968 On-dock Rail (yes/no): yes Terminal Hours: M-F Gate Hours: Notes: Navis Express gate system. Navis Sparcs computerized stowage and yard operations system ft. others at 45 ft. 15 ship-to-shore cranes, 6 Paceco 30-ton, 2 Paceco Post-Panamax 50-ton, 4 ZPMC Post-Panamax-50 ton. Adjacent to Ex (Diagram) New York Container Terminal (NYCT) (Exhibit 43) is a dedicated container terminal using a combination of top-pick and wheeled storage. The terminal has a total of 187 acres with 85 acres for CY storage. NYCT operates three container berths with a total berth length of 3,012 feet. NYCT is operated by New York Container Terminal, Inc. The terminal operates ExpressRail Staten Island. Page 36

45 Exhibit 43: New York Container Terminal CONTAINER TERMINAL PROFILE Profle date: February 15, TEU: Port: New York Total Acres: 187 Terminal: New York Container Terminal CY Acres: 85 Terminal Type: Top-pick/Wheeled On-Dock Rail Acres: 0 Address: 300 Western Ave. Other Non-CY Acres: 20 Staten Island, NY Net Terminal Acres: 167 Operator (Stevedore): New York Container Terminal, Inc. Berths: 3 Contact Name: Total Berth Length: 3,012 Telephone Number: (718) Channel Depth (MLLW): 35 Fax Number: (718) Berth Depth (MLLW): 45 Address: Panamax Container Cranes: 5 Port Website: Container Cranes: 4 Terminal Website: CY Rail-Mounted Gantries: Inbound Gates: 12 CY Rubber-Tired Gantries: Outbound Gates: 8 CY Side or Top Loaders: 32 Reversible Gates: CY Straddle Carriers: Total Gates: 20 CY Reach Stackers: On-Line Access System: Total CY Lift Machines 32 Appointment System: On-site M&R (yes/no): Yes Reefer Plugs/Slots: 477 On-dock Rail (yes/no): Yes Terminal Hours: Gate Hours: Monday - Friday: 6:00am - 4:00pm Notes: Entrance Gates: North Washington Ave & Western Ave. 4 IHI- 40-ton, 4 Liebher Cranes, 2 Paceco- 45 Ðton. Berths: 42 ft. for 2,300 feet of berth; 37 ft. for 700 feet of berth. 22 full container handlers; 9 empty container handlers. Adjacent 37 a Container Yard Storage Capacity Exhibit 44 summarizes land use at the Port of New York and New Jersey. The combined acreage of the container terminals is 1,338 acres. The net terminal area is 1,062 acres with 783 acres of CY, yielding a CY/Gross ratio of 59%. The container acreage areas were estimated from the aerial photos. As Exhibit 37 shows these legacy terminals have a significant amount of non-cy Page 37

46 acreage. While most have been periodically reorganized and rationalized, they do not have the clean sheet of paper configurations of the most modern terminals (e.g. APM Portsmouth or the Mobile Container Terminal). As anticipated, Red Hook, which is a mixed use terminal, has the lowest CY/Gross ratio. Exhibit 44: Port of New York and New Jersey Land Use Port Land Use Red Hook Global PNCT Maher APM NYCT Port Total Gross Acres ,338 CY Acres Rail Acres Other Non-CY Acres Net Berth/Gate/Yard Acres ,062 CY/Gross Ratio 38% 64% 79% 61% 55% 45% 59% Exhibit 45 applies standard CY storage factors to the port acreage from Exhibit 44. Applying standard CY storage factors yields an estimated combined total of 125,320 TEU slots for the six terminals. Annual sustainable CY TEU capacity is estimated to be 7.0 million TEU producing annual utilization of 75% relative to 2008 volume of 5.2 million TEU. Exhibit 45: Port of New York and New Jersey Near Term CY Storage Capacity Container Yard Capacity Red Hook Global PNCT Maher APM NYCT Port Total Wheeled Chassis Slots - 2,000 6, , ,080 Grounded Straddle Carrier Slots - - 8,960 37, ,240 Grounded Stacked Slots 6,000 3,000 1,200 6,000 8,000 14,600 38,800 Grounded RTG Slots - 7, ,000-22,200 Grounded RMG Slots TEU Storage Slots 6,000 12,200 16,320 44,080 31,160 15, ,320 Avg TEU Slots/CY Acre Maximum Annual Slot Turnover Maximum Annual CY TEU Capacity 420, ,000 1,158,720 3,173,760 2,274,680 1,089,200 8,772,400 Sustainable CY TEU 80% 336, , ,976 2,539,008 1,819, ,360 7,017, Annual TEU ,265, TEU per CY Slot CY Capacity Utilization 75% At this level of utilization spot shortages of CY capacity have occurred as trade ebbs and flows and as carriers and business volume shifts between terminals. Maher established and has maintained use of auxiliary chassis and empty container yards through the downturn. PNCT gained a large new customer in late 2009 that created a demand for CY space that it was unable to meet without adding an outside CY. Cargo is constantly being redistributed among the terminals. The use of off-terminal land to store chassis and empty containers at PANYNJ is a likely harbinger of developments to come at other ports. in addition Maersk, the major tenant at APM Terminals, has converted its carrier-provided chassis pool to a per-diem pool that can be used for non-maersk containers. These developments probably signal the start of a shift between the USonly practice of carrier chassis supply via on-terminal fleets to trucker-supplied chassis, as is the practice everywhere else. Moving chassis pools out of the terminals will increase throughput capacity. Crane Capacity Exhibit 46 summarizes the Port of New York and New Jersey container cranes and their estimated capacity. A total of 58 container cranes operate at the six PANYNJ container Page 38

47 terminals. Panamax cranes are gradually being replaced and supplemented with Post-Panamax and Super Post-Panamax varieties. Red Hook is the only terminal that does not have Post - Panamax cranes. Annual crane capacity for the port is estimated to be 14.6 million TEU with 2008 utilization estimated at 36%. Exhibit 46: Port of New York and New Jersey Near-term Crane Capacity Crane Capacity Red Hook Global PNCT Maher APM NYCT Port Total Cranes Available Crane Hours per Day Current Annual Operating Days Current Annual Hours/Crane 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Annual Available Crane Hours 16,000 24,000 36,000 60,000 60,000 36, ,000 Sustainable 80% 12,800 19,200 28,800 48,000 48,000 28, ,600 Avg. TEU/Available Crane-hour Avg. Annual TEU/Crane ,777 Crane Capacity, Moves/hour Sustainable 80% Port average TEU/container Crane Capacity TEU/hour Annual Crane Capacity 1,008,000 1,512,000 2,268,000 3,780,000 3,780,000 2,268,000 14,616,000 Current Annual TEU ,265,058 Current Crane Utilization 36% As at other ports, the number of cranes is dictated by the need to unload and load vessels on schedule, so crane utilization is effectively sacrificed in favor of vessel utilization. Berth Capacity The Port of New York and New Jersey s berth capacity estimated in TEU for the maximum vessel size is summarized in Exhibit 47. This estimate generates near term berth capacity of 22.4 million TEU and berth utilization of 24%. Exhibit 47: Port of New York and New Jersey Near Term Berth Capacity Maximum Vessel Basis Berth Capacity - Max Vessel Basis Red Hook Global PNCT Maher APM NYCT Port Total Berths Berth length 2,080 1,800 4,400 10,128 6,001 3,012 27,421 Berth Depth - Feet Max Sailing Draft Corresponding Design 95% Corresponding DWT 50,280 54,506 91,137 91,137 63,678 26,763 91,137 Nominal Max Vessel TEU 4,067 4,419 7,470 7,470 5,183 2,108 7,470 Corresponding Vessel Length - Feet ,000 1, ,000 Vessel Spacing (Beam) Length requirement 1,005 1,005 1,120 1,120 1, ,120 Available Berths for Max Vessel Port average TEU/container TEU 5,299,105 Avg. TEU/Vessel 2,079 Avg. Vessel DWT 48,220 Average Est. Vessel Capacity TEU 3,895 Average Discharge & Load % 53% Average TEU per Max Vessel 3,987 Max annual calls per berth 260 Sustainable Calls per 80% 208 Total Sustainable Vessel Calls 5,616 Annual Berth Capacity TEU 22,390, Annual TEU ,265,058 Berth Utilization, Max Vessel Basis 24% Page 39

48 The PANYNJ average vessel discharge/load ratio of 53% is substantially higher than at Boston, with which PANYNJ competes. Berth capacity based on vessel calls is summarized in Ex. This approach generates a berth capacity estimate of 7020 vessel calls and 2007 port berth utilization of 36% Exhibit 48. Exhibit 48: Port of New York and New Jersey Berth Capacity Vessel Call Basis Berth Utilization - Vessel Call Basis Red Hook Global PNCT Maher APM NYCT Port Total Est. Sustainable Calls per berth 5 / wk Available Berths Sustainable Calls per 80% Total Sustainable Vessel Calls ,872 1, , Vessel calls Berth Utilization 45% Capacity and Productivity Summary Exhibit 49 summarizes the capacity and productivity analysis for CY space, container cranes, and vessel berths for the Port of New York and New Jersey. The port currently has estimated sustainable CY capacity of 8.8 million TEU with utilization at 75%. Current crane capacity for the port s 58 cranes is estimated to be 14.6 million TEU with utilization of 36%. Berth capacity utilization on a vessel call basis is estimated to be 36%. On a TEU basis berth capacity is estimated to be 4.4 million TEU with utilization of 24%. Overall this analysis indicates that the Port of New York and New Jersey is potentially land constrained, that spot shortages of CY space have been experienced, and that management measures are being taken to both densify container yard storage and move non-essential features off the main marine terminal. Capacity exists for growth in both crane and berth capacity. Page 40

49 Exhibit 49: Port of New York and New Jersey Near Term Capacity and Productivity Summary Terminal Space Red Hook Global PNCT Maher APM NYCT NYNJ 2008 TEU ,265,058 Gross Acres ,338 CY Acres CY/Gross Ratio 38% 64% 79% 61% 55% 45% 59% Annual CY Capacity - TEU 420, ,000 1,158,720 3,173,760 2,274,680 1,089,200 8,772,400 Annual TEU/Gross Acre ,935 Annual TEU/CY Acre ,724 Est. CY TEU Slots 6,000 12,200 16,320 44,080 31,160 15, ,320 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 75% Container Cranes Red Hook Global PNCT Maher APM NYCT NYNJ Cranes Cranes per Berth Annual Crane Capacity - TEU 1,008,000 1,512,000 2,268,000 3,780,000 3,780,000 2,268,000 14,616,000 Avg. Moves/Available Crane-Hour Annual TEU/Crane ,777 Annual Moves/Crane ,432 Annual Vessel Calls/Crane (2007) Crane Utilization 36% Berths and Vessels Red Hook Global PNCT Maher APM NYCT NYNJ Berths Berth Feet 2,080 1,800 4,400 10,128 6,001 3,012 27,421 Annual Vessel Calls per Berth (2007) Berth Utilization - Vessel Call Basis 45% Annual TEU per Berth ,502 Annual TEU/Foot of Berth Average Vessel Capacity - TEU ,895 Est. Max. Vessel Capacity - TEU 4,067 4,419 7,470 7,470 5,183 2,108 7,470 Avg. vs. Max. Vessel Capacity 0% 0% 0% 0% 0% 0% 52% Average TEU per Vessel (2007) ,079 Avg. Vessel Utilization - % Discharge/Load 53% Berth Capacity - Avg. Vessel Basis ,675,078 Berth Utilization - Avg. Vessel Basis 45% Avg. Discharge/Load per Max. Vessel 3,987 Berth Capacity - Max. Vessel Basis 22,390,305 Berth Utilization - Max. Vessel Basis 24% Delaware River Ports Overview Because MARAD combines all ship call information for all ports on the Delaware River, this estimate covers both the Port of Philadelphia and the Port of Wilmington, Delaware. Both terminals handle frozen and refrigerated goods and have temperature and atmosphere controlled on dock warehouses. Packer Terminal at Philadelphia handles steel and project cargo and has a ro-ro berth. Wilmington s largest customers are Dole and Chiquita and the terminal is the largest banana port in the world. Packer Marine Terminal (Exhibit 50) is a mixed use, legacy complex of container, Ro-Ro, and break bulk terminals and berths. The container facilities are operated by Greenwich Terminals, LLC which is a subsidiary of Holt Logistics. The Packer terminal has a total of 112 acres for all of its operations. The container portion of the terminal is estimated to be 68 acres with 51 acres of CY space. The Packer terminal operates 5 berths for all of its operations with a total berth length of 3,800 feet. Page 41

50 Exhibit 50: Packer Marine Terminal CONTAINER TERMINAL PROFILE Profle date: Sept. 27, TEU: Port: Philadelphia Total Acres: 112 Terminal: Packer Ave. CY Acres: 51 Terminal Type: Top-pick/Wheeled On-Dock Rail Acres: 0 Address: 3301 S. Columbus Blvd. Other Non-CY Acres: 17 Philadelphia, PA Net Terminal Acres: 68 Operator (Stevedore): Greenwich Terminals. LLC Berths: 5 Contact Name: Total Berth Length: 3,800 Telephone Number: (215) Channel Depth (MLLW): 40 Fax Number: Berth Depth (MLLW): 40 Address: Panamax Container Cranes: 7 Port Website: Post-Panamax Container Cranes: Terminal Website: CY Rail-Mounted Gantries: Inbound Gates: 8 CY Rubber-Tired Gantries: Outbound Gates: 3 CY Side or Top Loaders: 13 Reversible Gates: CY Straddle Carriers: Total Gates: 11 CY Reach Stackers: 8 On-Line Access System: Total CY Lift Machines 21 Appointment System: On-site M&R (yes/no): Reefer Plugs/Slots: 1,350 On-dock Rail (yes/no): No Terminal Hours: Gate Hours: Notes: Separate gate for breakbulk cargo. 6 berths, 1 RO/RO. Cranes: 2 Hyundai container cranes (65 T) (Twin lift capable), 1 Kocks container crane: 375 tons (340.1 metric tons), 3 Kocks container cranes: 45 tons each (40.8 metric to), 1 Paceco container crane Page 42

51 Exhibit 51 is an aerial view of Packer Marine Terminal. Exhibit 51: Packer Marine Terminal, Philadelphia Source: Google Earth Image Date July 4, 2007 Wilmington Marine Terminal (Exhibit 52) is a mixed-use marine terminal complex for container, Ro-Ro, and break bulk cargo. The terminal is owned by the state and operated by Delaware River Stevedores, Inc. The Wilmington terminal has a total of 308 acres for all of its operations. The container portion of the terminal is estimated to be 83 acres with 59 acres of CY space. The Wilmington terminal operates 2 berths for its container operations with a total berth length of 1,500 feet. The terminal also handles palletized fruit, beef, automobiles, and dry bulk, such as petroleumcoke, road salt, and magnetite. The Port facilities include seven deepwater general cargo berths, a tanker berth, a floating berth for Ro-Ro vessels on the Christina River, and an auto and Ro-Ro berth on the Delaware River. Containerized handling equipment includes two multi-purpose gantry cranes, each with 50-ton capacity. Page 43

52 Exhibit 52 Wilmington Marine Terminal CONTAINER TERMINAL PROFILE Profle date: April 8, TEU: Port: Delaware Bay Total Acres: 308 Terminal: Wilmington CY Acres: 69 Terminal Type: Top-pick/Wheeled On-Dock Rail Acres: 0 Address: 1 Hausel Road Other Non-CY Acres: 14 Wilmington, DE Net Terminal Acres: 83 Operator (Stevedore): Delaware River Stevedores Berths: 2 Contact Name: Total Berth Length: 1,500 Telephone Number: (302) Channel Depth (MLLW): 38 Fax Number: Berth Depth (MLLW): 38 Address: Panamax Container Cranes: 2 Port Website: Post-Panamax Container Cranes: 0 Terminal Website: Rail-Mounted Gantries: Inbound Gates: CY Rubber-Tired Gantries: Outbound Gates: CY Side or Top Loaders: Reversible Gates: 14 CY Straddle Carriers: Total Gates: 14 CY Reach Stackers: On-Line Access System: Total CY Lift Machines Appointment System: On-site M&R (yes/no): Yes Reefer Plugs/Slots: Temprature and Atmosphere On-dock Rail (yes/no): No Terminal Hours: Gate Hours: Page 44

53 Exhibit 53 is an aerial view of the Wilmington marine terminal. Exhibit 53: Wilmington Marine Terminal, Wilmington, DE Source: Google Earth Image Date August 6, 2009 Container Yard Storage Capacity Exhibit 54 summarizes land use at the Delaware River container ports. The combined acreage of the Packer container terminal and the Wilmington container terminal areas is 420 acres. The CY area is 120 acres creating net land use of 29%. Both terminals, but particularly Wilmington, are mixed use facilities. Exhibit 54: Delaware River Ports Land Use Port Land Use Packer Wilmington Port Total Gross Acres CY Acres Rail Acres Other Non-CY Acres Net Berth/Gate/Yard Acres CYGross Ratio 46% 22% 29% Exhibit 55 applies standard CY storage factors to the port acreage from Exhibit 63. Based on interpretation of aerial photos, Packer is about 12% wheeled and 88% grounded with top-picks. Wilmington s CY is currently 100% wheeled. Applying these percentages to the standard CY storage factors yields an estimated combined total of 15,000 TEU slots for the two terminals. Annual CY sustainable TEU capacity is estimated to be 1.1 million TEU producing annual utilization of 68% relative to 2008 volume of 575,000 TEU. Page 45

54 Exhibit 55: Delaware River Ports Near Term CY Storage Capacity Container Yard Capacity Packer Wilmington Port Total Wheeled Chassis Slots 480 5,520 6,000 Grounded Straddle Carrier Slots Grounded Stacked Slots 9,000-9,000 Grounded RTG Slots Grounded RMG Slots TEU Storage Slots 9,480 5,520 15,000 Avg TEU Slots/CY Acre Maximum Annual Slot Turnover Maximum Annual CY TEU Capacity 663, ,400 1,050,000 Sustainable CY TEU 80% 530, , , Annual TEU 307, , , TEU per CY Slot CY Capacity Utilization 58% 87% 68% Crane Capacity Exhibit 56 summarizes the Delaware River Ports container cranes and their estimated capacity. Eight Panamax container cranes operate at the two terminals. Annual crane capacity for the port is estimated to be 2.0 million TEU with 2008 utilization at 29%. Both Packer and Wilmington have additional cranes for heavy lifting. Exhibit 56: Delaware River Ports Near-term Crane Capacity Crane Capacity Packer Wilmington Port Total Cranes Available Crane Hours per Day Current Annual Operating Days Current Annual Hours/Crane 4,000 4,000 4,000 Annual Available Crane Hours 24,000 8,000 32,000 Sustainable 80% 19,200 6,400 25,600 Avg. TEU/Available Crane-hour Avg. Annual TEU/Crane 51, ,842 71,860 Crane Capacity, Moves/hour Sustainable 80% Port average TEU/container Crane Capacity TEU/hour Annual Crane Capacity 1,512, ,000 2,016,000 Current Annual TEU 307, , ,876 Current Crane Utilization 20% 48% 29% Berth Capacity The Delaware River Ports container berth capacity estimated in TEU for the maximum vessel size is summarized in Exhibit 57. This estimate generates near-term berth capacity of 2.0 million TEU and berth utilization of 29%. Berth capacity based on vessel calls is summarized in Exhibit 57. This approach generates a berth capacity estimate of 2600 vessel calls and 2007 port berth utilization of 32%. Page 46

55 Exhibit 57: Delaware River Ports Near Term Berth Capacity Maximum Vessel Basis Berth Capacity - Max Vessel Basis Packer Wilmington Port Total Berths Berth length 3,800 1,500 5,300 Berth Depth - Feet Max Sailing Draft Corresponding Design 95% Corresponding DWT 42,512 40,000 42,512 Nominal Max Vessel TEU 3,420 3,210 3,420 Corresponding Vessel Length - Feet Vessel Spacing (Beam) Length requirement Available Berths for Max Vessel Port average TEU/container TEU 287, , ,904 Avg. TEU/Vessel 1,146 Avg. Vessel DWT 31,250 Average Est. Vessel Capacity TEU 2,482 Average Discharge & Load % 46% Average TEU per Max Vessel 1,579 Max annual calls per berth 260 Sustainable Calls per 80% 208 Total Sustainable Vessel Calls 1,248 Annual Berth Capacity TEU - - 1,971, Annual TEU 307, , ,876 Berth Utilization, Max Vessel Basis 29% The maximum vessel size for Philadelphia and Wilmington is constrained by channel and berth depth. The proposed Delaware River dredging project has been repeatedly delayed and is now being held up by a dispute between the States of Pennsylvania and New Jersey. If eventually completed, the project would provide a 45-foot channel to the Packer and Wilmington Terminals. The deeper channel would raise the maximum vessel size to an estimated 5,183 TEU, and increase long-term berth capacity to roughly 3 million TEU. Exhibit 58: Delaware River Ports Berth Capacity Vessel Call Basis Berth Utilization - Vessel Call Basis Packer Wilmington Port Total Max annual calls per berth Sustainable Calls per 80% Available Berths Total Sustainable Vessel Calls , Vessel calls Berth Utilization 40% Capacity and Productivity Summary Exhibit 59 summarizes the capacity and productivity analysis for CY space, container cranes, and vessel berths for the Delaware River Container Ports. The port region currently has estimated sustainable CY capacity of 840,000 TEU with utilization at 68%. Current crane Page 47

56 capacity for the port s 16 cranes is estimated to be 2.0 million TEU with utilization of 29%. Berth capacity utilization on a vessel call basis is estimated to be 32%. On a TEU basis berth capacity is estimated to be 2.0 million TEU with utilization of 29%. Overall this analysis indicates that the Delaware River Ports have adequate capacity to handle future growth. Exhibit 59: Delaware River Ports Near Term Capacity and Productivity Summary Terminal Space Packer Wilmington Delaware River 2008 TEU 307, , ,876 Gross Acres CY Acres CY/Gross Ratio 46% 22% 29% Annual CY Capacity - TEU 530, , ,000 Annual TEU/Gross Acre 2, ,369 Annual TEU/CY Acre 6,023 3,879 4,791 Est. CY TEU Slots 9,480 5,520 15,000 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 58% 87% 68% Container Cranes Packer Wilmington Delaware River Cranes Cranes per Berth Annual Crane Capacity - TEU 1,512, ,000 2,016,000 Avg. Moves/Available Crane-Hour Annual TEU/Crane 51, ,842 71,860 Annual Moves/Crane 28,444 66,921 39,922 Annual Vessel Calls/Crane (2007) 62 Crane Utilization 20% 48% 29% Berths and Vessels Packer Wilmington Delaware River Berths Berth Feet 3,800 1,500 5,300 Annual Vessel Calls per Berth (2007) 62 Berth Utilization - Vessel Call Basis 30% Annual TEU per Berth 76, , ,975 Annual TEU/Foot of Berth Average Vessel Capacity - TEU 2,482 Est. Max. Vessel Capacity - TEU 3,420 3,210 3,420 Avg. vs. Max. Vessel Capacity 73% Average TEU per Vessel (2007) 1,146 Avg. Vessel Utilization - % Discharge/Load 46% Berth Capacity - Avg. Vessel Basis 1,430,333 Berth Utilization - Avg. Vessel Basis 40% Avg. Discharge/Load per Max. Vessel 1,579 Berth Capacity - Max. Vessel Basis 1,971,103 Berth Utilization - Max. Vessel Basis 29% Like the Port of Boston, the Port of Philadelphia competes with the PANYNJ. Some ocean carriers currently offer Philadelphia bills of lading via truck service to and from PANYNJ. Philadelphia s market share thus appears to have been reduced by a variation on load centering. Page 48

57 Port of Baltimore Overview The Port of Baltimore has two container terminals owned by the Maryland Port Administration. The Seagirt Marine Terminal is a dedicated container terminal and the Dundalk Marine terminal is a mixed-use port facility. Exhibit 60 is an aerial view of the port with the container operating areas outlined in red. Exhibit 60: Port of Baltimore Source: Google Earth Image Date February 28, 2007 Dundalk (Exhibit 61) is a legacy complex of container, Ro-Ro, and break bulk terminals and berths. The container facilities are operated by Ports America and Ceres stevedoring companies. Unlike most dedicated container terminals there is no exclusive relationship between gates, container yard, berths, and cranes. The Dundalk terminal has a total of 570 acres for all of its operations. However, the container portion of the terminal is estimated to be 202 acres with 94 acres of CY space. The Dundalk terminal operates 7 berths for all of its operations with a total berth length of 5,692 feet. Seagirt (Exhibit 62) is a dedicated container terminal using a combination of RTG, top-pick, and wheeled storage. The terminal has a total of 256 acres with 134 acres for CY storage. The terminal acreage also includes a 66 acre on dock rail intermodal terminal which is operated by CSX. Seagirt operates three container berths with a total berth length of 3,127 feet. The Seagirt terminal was leased to Ports America Chesapeake in a 50-year concession agreement in January of One of the provisions of the agreement is that Ports America has agreed to construct a new 50-foot draft berth at Seagirt. Page 49

58 Exhibit 61: Dundalk Marine Terminal Profle date: Sept. 27, TEU: 144,000 Port: Baltimore, Maryland Total Acres: 202 Terminal: Dundalk Marine Terminal CY Acres: 94 Terminal Type: Container, RoRo & Breakbulk On-Dock Rail Acres: NA Address: 2700 Broening Highway Other Non-CY Acres: 108 Baltimore, MD Net Terminal Acres: 94 Operator (Stevedore): Ports America ( ) Berths: 7 Contact Name: Total Berth Length: 5,692 Telephone Number: Channel Depth (MLLW): 42' & 38' Fax Number: Berth Depth (MLLW): 42' Address: Panamax Container Cranes: 9 Port Website: Post-Panamax Container Cranes: Terminal Website: CY Rail-Mounted Gantries: Inbound Gates: 5 container, 4 non container CY Rubber-Tired Gantries: Outbound Gates: 3 CY Side or Top Loaders: Reversible Gates: CY Straddle Carriers: Total Gates: 12 CY Reach Stackers: On-Line Access System: emodal & Navis Total CY Lift Machines 0 Appointment System: no On-site M&R (yes/no): Reefer Plugs/Slots: 142 On-dock Rail (yes/no): No Terminal Hours: Gate Hours: Mon Fri Mon Fri CONTAINER TERMINAL PROFILE Notes: 570 acres includes container, general cargo and automobile facilities. 94 acres of container storage. Seagirt ICTF operated by CSX is adjacent to Dundalk, Norfolk Southern Baltimore terminal about 4 miles. Dundalk and Seagirt terminals are connected by internal connector bridge. (Diagram) Page 50

59 Exhibit 62: Seagirt Marine Terminal Profle date: Sept. 27, TEU: 469,000 Port: Maryland Total Acres: 256 Terminal: Seagirt Marine, Baltimore CY Acres: 134 Terminal Type: Container Terminal On-Dock Rail Acres: 66 Address: 2600 Broening Highway Other Non-CY Acres: 56 Baltimore, MD Net Terminal Acres: 190 Operator (Stevedore): Ports America ( ) Berths: 3 Contact Name: Total Berth Length: 3,127 Telephone Number: Channel Depth (MLLW): 50' Fax Number: Berth Depth (MLLW): 42' Address: Panamax Container Cranes: Port Website: Post-Panamax Container Cranes: 7 Terminal Website: CY Rail-Mounted Gantries: Inbound Gates: 9 CY Rubber-Tired Gantries: 12 Outbound Gates: 5 CY Side or Top Loaders: Reversible Gates: CY Straddle Carriers: Total Gates: 14 CY Reach Stackers: On-Line Access System: emodal & Navis Total CY Lift Machines 12 Appointment System: no On-site M&R (yes/no): no Reefer Plugs/Slots: 192 On-dock Rail (yes/no): yes Terminal Hours: Gate Hours: Mon Fri CONTAINER TERMINAL PROFILE Notes: Seagirt near dock terminal operated by CSX is contiguous to the marine terminal, Norfolk Southern Baltimore terminal 3-4 miles. Dundalk and Seagirt terminals are connected by internal connector bridge. (Diagram) Page 51

60 Container Yard Storage Capacity Exhibit 63 summarizes the land use at the Port of Baltimore. The combined acreage of the Seagirt container terminal and the Dundalk container terminal areas is 458 acres. The CY terminal area is 336 acres creating a CY/gross ratio of 73%. The container acreage areas for Dundalk were estimated from the aerial photos. Only the estimated container areas for the Dundalk terminal were considered in this analysis. The inclusion of 66 acres of rail intermodal operations within Seagirt lowers the net/gross ratio. Exhibit 63: Port of Baltimore Land Use Port Land Use Seagirt Dundalk Port Total Gross Acres CY Acres Rail Acres Other Non-CY Acres Net Berth/Gate/Yard Acres CY/Gross Ratio 52% 47% 50% Exhibit 64 applies standard CY storage factors to the port acreage from Exhibit 63. Based on interpretation of aerial photos, Dundalk is about 31% wheeled and 69% grounded with top-picks. Seagirt s CY is currently 15% wheeled, 49% grounded with top-picks, and 36% grounded with RTGs. Applying these percentages to the standard CY storage factors yields an estimated combined total of 47,040 TEU slots for the two terminals. Annual CY sustainable TEU capacity is estimated to be 2.6 million TEU producing annual utilization of 23% relative to 2008 volume of 613,000 TEU. Exhibit 64: Port of Baltimore Near Term CY Storage Capacity Container Yard Capacity Seagirt Dundalk Port Total Wheeled Chassis Slots 1,280 2,160 3,440 Grounded Straddle Carrier Slots Grounded Stacked Slots 10,400 13,400 23,800 Grounded RTG Slots 19,800-19,800 Grounded RMG Slots TEU Storage Slots 31,480 15,560 47,040 Avg TEU Slots/CY Acre Maximum Annual Slot Turnover Maximum Annual CY TEU Capacity 2,203,600 1,089,200 3,292,800 Sustainable CY TEU 80% 1,762, ,360 2,634, Annual TEU 469, , , TEU per CY Slot CY Capacity Utilization 27% 17% 23% Crane Capacity Exhibit 65 summarizes the Port of Baltimore container cranes and their estimated capacity. The port operates 16 cranes at its two terminals. Seagirt s modern, dual-hoist, post-panamax cranes are exceptionally productive. Dundalk s Panamax cranes are older, and are not heavily used. Annual crane capacity for the port is estimated to be 3.5 million TEU with 2008 utilization at 18%. The low port average is due to the underutilized cranes at Dundalk. Page 52

61 Exhibit 65: Port of Baltimore Near-term Crane Capacity Crane Capacity Seagirt Dundalk Port Total Cranes Available Crane Hours per Day Current Annual Operating Days Current Annual Hours/Crane 4,000 4,000 4,000 Annual Available Crane Hours 28,000 36,000 64,000 Sustainable 80% 22,400 28,800 51,200 Avg. TEU/Available Crane-hour Avg. Annual TEU/Crane 67,000 16,000 38,313 Crane Capacity, Moves/hour Sustainable 80% Port average TEU/container Crane Capacity TEU/hour Annual Crane Capacity 1,518,651 1,952,551 3,471,202 Current Annual TEU 469, , ,000 Current Crane Utilization 31% 7% 18% Berth Capacity The Port of Baltimore s berth capacity estimated in TEU for the maximum vessel size is summarized in Exhibit 66. This estimate generates near term berth capacity of 8.4 million TEU and berth utilization of 7%. Berth capacity based on vessel calls is summarized in Exhibit 67. This approach generates a berth capacity estimate of 2600 vessel calls and 2007 port berth utilization of 16%. It is clear that the berth utilization estimates are somewhat understated because the Dundalk terminal berths are utilized for more than just container ships. Page 53

62 Exhibit 66: Port of Baltimore Near Term Berth Capacity Maximum Vessel Basis Berth Capacity - Max Vessel Basis Seagirt Dundalk Port Total Berths Berth length 3,127 5,692 8,819 Berth Depth - Feet Max Sailing Draft Corresponding Design 95% Corresponding DWT 91,137 50,280 91,137 Nominal Max Vessel TEU 7,470 4,067 7,470 Corresponding Vessel Length - Feet 1, ,000 Vessel Spacing (Beam) Length requirement 1,120 1,005 1,120 Available Berths for Max Vessel Port average TEU/container TEU 610,000 Avg. TEU/Vessel 2,346 Avg. Vessel DWT 48,220 Average Est. Vessel Capacity TEU 3,895 Average Discharge & Load % 60% Average TEU per Max Vessel 4,499 4,499 4,499 Max annual calls per Berth Sustainable Vessel 80% Total Sustainable Vessel Calls 624 1,248 1,872 Annual Berth Capacity TEU 2,807,639 5,615,278 8,422, Annual TEU 469, , ,000 Berth Utilization, Max Vessel Basis 17% 3% 7% Exhibit 67: Port of Baltimore Berth Capacity Vessel Call Basis Berth Utilization - Vessel Call Basis Seagirt Dundalk Port Total Max annual calls per Berth Sustainable Vessel 80% Available Berths Total Sustainable Vessel Calls 624 1,456 2, Vessel Calls Berth Utilization 21% Capacity and Productivity Summary Exhibit 68 summarizes the capacity and productivity analysis for CY space, container cranes, and vessel berths for the Port of Baltimore. The port currently has estimated sustainable CY capacity of 2.6 million TEU with utilization at 23%. Current crane capacity for the port s 16 cranes is estimated to be 3.5 million TEU with utilization of 18%. Berth capacity utilization on a vessel call basis is estimated to be 16%. On a TEU basis berth capacity is estimated to be 4.4 million TEU with utilization of 7%. Overall this analysis indicates that the Port of Baltimore has adequate capacity to handle future growth. Page 54

63 Exhibit 68: Port of Baltimore Near Term Capacity and Productivity Summary Terminal Space Seagirt Dundalk Baltimore 2008 TEU 469, , ,000 Gross Acres CY Acres CY/Gross Ratio 52% 47% 50% Sustainable CY TEU 80% 1,762, ,360 2,634,240 Annual TEU/Gross Acre 1, ,338 Annual TEU/CY Acre 3,500 1,532 2,689 Est. CY TEU Slots 31,480 15,560 47,040 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 27% 17% 23% Container Cranes Seagirt Dundalk Baltimore Cranes Cranes per Berth Annual Crane Capacity - TEU 1,518,651 1,952,551 3,471,202 Avg. Moves/Available Crane-Hour Annual TEU/Crane 67,000 16,000 38,313 Annual Moves/Crane 43,236 10,325 24,723 Annual Vessel Calls/Crane (2007) 16 Crane Utilization 31% 7% 18% Berths and Vessels Seagirt Dundalk Baltimore Berths Berth Feet 3,127 5,692 8,819 Annual Vessel Calls per Berth (2007) 43 Berth Utilization - Vessel Call Basis 21% Annual TEU per Berth 156,333 20,571 61,300 Annual TEU/Foot of Berth Average Vessel Capacity - TEU 3,895 Est. Max. Vessel Capacity - TEU 7,470 Avg. vs. Max. Vessel Capacity 52% Average TEU per Vessel (2007) 2,346 Avg. Vessel Utilization - % Discharge/Load 60% Berth Capacity - Avg. Vessel Basis 4,392,000 Berth Utilization - Avg. Vessel Basis 14% Avg. Discharge/Load per Max. Vessel 4,499 Berth Capacity - Max. Vessel Basis 8,422,918 Berth Utilization - Max. Vessel Basis 7% The low utilization figures for the Port of Baltimore as a whole are driven by the use of part of the legacy Dundalk terminal for containers. Utilization of the Seagirt terminal is still low, but more in line with other ports. One option raised by the channel and berth deepening associated with Ports America operation of Seagirt is concentration of all Baltimore container activity there. Page 55

64 Port of Virginia Overview The Port of Virginia 2 has four container terminals, three that are operated by the Virginia International Terminals, Inc. (VIT) and one a private terminal operated by APM Terminals. VIT is a corporation owned by the Commonwealth through the local Port Authority (VPA). Exhibit 69 is a map of the region identifying the major marine container terminal facilities. Craney Island has been identified as a large future development site. Exhibit 69: Port of Hampton Roads Source: Group 2010, Data available from the Port Authority Web Site. There is an important distinction in the numbers that follow and a difference in approach when compared with other port capacity estimates. The Port of Virginia s three terminals reported 2.1 million TEU in There is no separate report of TEU from APM Virginia, which opened in September Ratios involving TEU therefore apply only to the three Port of Virginia terminals. Vessel call information for 2007 is from a different source and includes the first calls made at APM Virginia; therefore ratios involving vessel calls apply to all four terminals. Approximately a third of the containers move west by rail. This percentage is expected to increase with the completion of Norfolk Southern s Heartland Corridor project anticipated in The project will result in a new intermodal route between Hampton Roads, Va., and Chicago which is approximately 200 miles shorter that the present double stack rail route via Harrisburg, PA. A low percentage of the cargo remains in the Norfolk area. A further increase in marine terminal capacity is anticipated with the development of the 600- acre Craney Island site. The first phase includes a 220 acre container yard, 3000 feet of berth, an on-dock rail facility, and eight cranes. The ultimate build out is projected with 20 Suezclass cranes and 8,400 feet of berth space. The first phase could be complete as early as Port of Virginia is the adopted and preferred term for the complex of Hampton Roads, Norfolk, Newport News, and Portsmouth terminals. Page 56

65 Norfolk International Terminal (NIT) (Exhibit 70) is a legacy complex of container, bulk, break bulk, and warehouse facilities. The terminal is operated by Virginia International Terminals, Inc. Norfolk International Terminal (NIT) is the Port of Virginia's largest container facility using a combination of straddle carrier, top-pick, and wheeled storage. NIT has fourteen Super Post-Panamax cranes with a reach stretching 245 feet. The main channel leading to the terminal is 50 feet deep and is being deepened to 55 feet. The terminal has an on-dock rail intermodal terminal which is served by Norfolk Southern. Exhibit 70: Norfolk International Terminal CONTAINER TERMINAL PROFILE Profile date: 2/4/ TEU: Port: The Port of Virginia Total Acres: 320 Terminal: Norfolk International Terminals CY Acres: 152 Terminal Type: Straddle/Wheeled/Combination On-Dock Rail Acres (includes area for rail operations): 10 Address: 7737 Hampton Blvd. Other Non-CY Acres: 0 Norfolk, VA Net Terminal Acres: 310 Operator (Stevedore): Virginia International Terminals (VIT) Berths (container/total): 5 Contact Name: Russell Held, Deputy Executive Director, Development Total Berth Length: 6,000 Telephone Number: Channel Depth (MLLW): 49 Fax Number: Berth Depth (MLLW): 48 Address: rheld@portofvirginia.com Panamax Container Cranes*: 0 Port Website: Post-Panamax Container Cranes: 14 Terminal Website: CY Rail-Mounted Gantries: Inbound Gates: Depends on traffic flows CY Rubber-Tired Gantries: Outbound Gates: Depends on traffic flows CY Side or Top Loaders: Reversible Gates: 14 CY Straddle Carriers: Total Gates: 17 CY Reach Stackers: On-Line Access System: Total CY Lift Machines Appointment System: In the process of implementing On-site M&R (yes/no): Yes Reefer Plugs/Slots: 582 On-dock Rail (yes/no): Yes Terminal Hours: 24/7 with exception of holidays Gate Hours: Monday through Friday 7:00 AM - 5:00 PM - Dispatches Stop at 4:15 PM; LTL: 7:00 AM - 5: PM (Must Notes: *All Post-Panamax container cranes also meet Panamax descriptions. Total container berth length is 6530 ft. Intermodal: On dock intermodal terminal served by NS. Page 57

66 Portsmouth Marine Terminal (PMT) (Exhibit 71) is a dedicated container terminal using a combination of straddle carrier, top-pick, and wheeled storage. The terminal has a total of 219 acres with 109 acres for CY storage. PMT operates three container berths with a total length of 3,540 feet. All areas have been estimated from aerial photographs. The PMT is operated by Virginia International Terminals, Inc. The facility has direct access to both Norfolk Southern and CSX Railroads. Exhibit 71: Portsmouth Marine Terminal CONTAINER TERMINAL PROFILE Profile date: 2/4/ TEU: Port: The Port of Virginia Total Acres: 219 Terminal: Portsmouth Marine Terminal CY Acres: 109 Terminal Type: Straddle/Top-pick/Wheeled On-Dock Rail Acres: 0 Address: 2000 Seaboard Ave. Other Non-CY Acres: 20 Portsmouth, VA Net Terminal Acres (BGY): 199 Operator (Stevedore): Virginia International Terminals (VIT) Berths: 3 Contact Name: Russell Held, Deputy Executive Director, Development Total Berth Length: 3,540 Telephone Number: Channel Depth (MLLW): 43 Fax Number: Berth Depth (MLLW): 43 Address: rheld@portofvirginia.com Panamax Container Cranes*: 3 Port Website: Post-Panamax Container Cranes: 6 Terminal Website: CY Rail-Mounted Gantries: Inbound Gates: 8 CY Rubber-Tired Gantries: Outbound Gates: 6 CY Side or Top Loaders: Reversible Gates: 7 CY Straddle Carriers: Total Gates: 14 CY Reach Stackers: On-Line Access System: Total CY Lift Machines Appointment System: In the process of implementing On-site M&R (yes/no): Yes Reefer Plugs/Slots: 150 On-dock Rail (yes/no): (rail service) No Terminal Hours: 24/7 with exception of holidays Gate Hours: Monday through Friday 7:00 AM - 5:00 PM - Dispatches Stop at 4:15 PM Notes: *All Post-Panamax cranes also meet Panamax descriptions, cranes that only meet the description of Panamax and not Post- Panamax are listed in this column. CSX Portsmouth intermodal terminal is adjacent to PMT and NS Chesapeake terminal is within draft. Newport News Marine Terminal (NNMT) (Exhibit 72) is primarily a break-bulk terminal. Container facilities are limited to two berths, five Panamax cranes, and a 23-acre container yard. Page 58

67 Exhibit 72: Newport News Marine Terminal (NNMT) CONTAINER TERMINAL PROFILE Profile date: 2/4/ TEU: Port: The Port of Virginia Total Acres: 141 Terminal: Newport News Marine Terminal CY Acres: 23 Terminal Type: Top-pick/Wheeled/Combination On-Dock Rail Acres: (includes area for rail operations) 6 Address: 25th St. & Warwick Blvd. Other Non-CY Acres: 70 Newport New, VA Net Terminal Acres: 65 Operator (Stevedore): Virginia International Terminals (VIT) Berths (Container/Total): 2 Contact Name: Russell Held, Deputy Executive Director, Development Total Berth Length: 1,920 Telephone Number: Channel Depth (MLLW): 49 Fax Number: Berth Depth (MLLW): 40 Address: rheld@portofvirginia.com Panamax Container Cranes: 5 Port Website: Post-Panamax Container Cranes: 0 Terminal Website: CY Rail-Mounted Gantries: Inbound Gates: Depends on traffic flow CY Rubber-Tired Gantries: Outbound Gates: Depends on traffic flow CY Side or Top Loaders: Reversible Gates: 3 CY Straddle Carriers: Total Gates: 6 CY Reach Stackers: On-Line Access System: Total CY Lift Machines Appointment System: On-site M&R (yes/no): No Reefer Plugs/Slots: 72 On-dock Rail (yes/no): (rail service) No Terminal Hours: 24/7 with exception of holidays Gate Hours: Hours: Monday through Friday 8:00 AM - 12 noon, 1:00 PM - 5:00 PM - Dispatches Stop at 4:30 PM LTL: Notes: Container berth length is 1930 ft. CSX Portsmouth terminal and NS Chesapeake terminal within drayage distance. Currently no on-dock rail service, however, on-dock rail access exists. Newport news handles both containers and breakbulk and ro/ro containers. APM Terminals, Virginia (Exhibit 73) is a new, highly automated container terminal which opened in September The terminal uses RMGs in the main storage area. Some wheeled storage is provided for expedited and unusual cargo. The terminal has a total of 230 acres, a significant portion of which remains undeveloped. The facility is operated by APM Terminals and has a dedicated on-dock rail facility with open access for CSX and Norfolk Southern. The Page 59

68 terminal is one of the few outside Southern California that operates with a motor carrier appointment system. Exhibit 73: APM Terminals Virginia CONTAINER TERMINAL PROFILE Profile date: 4/12/ TEU: Port: The Port of Virginia Total Acres: 230 Terminal: APM Virginia CY Acres: 78 Terminal Type: On-Dock Rail Acres : 34 Address: 1000 APM Terminals Boulevard Other Non-CY Acres: 122 Portsmouth, VA Net Terminal Acres: 108 Operator (Stevedore): APM Terminals Berths (container/total): 4 Contact Name: Allison Lovick Total Berth Length: 3,200 Telephone Number: Channel Depth (MLLW): 50 Fax Number: Berth Depth (MLLW): 55 Address: Alison.Louise.Lovick@apmterm Panamax Container Cranes*: Port Website: Post-Panamax Container Cranes: 6 Terminal Website: Rail-Mounted Gantries: 30 Inbound Gates: 12 CY Rubber-Tired Gantries: Outbound Gates: 12 CY Side or Top Loaders: Reversible Gates: 0 CY Straddle Carriers: 20 Total Gates: 24 CY Reach Stackers: On-Line Access System: Yes, Navis Total CY Lift Machines 50 Appointment System: Yes On-site M&R (yes/no): Yes Reefer Plugs/Slots: 300+ On-dock Rail (yes/no): Yes Terminal Hours: M-F Gate Hours: M-F Dispatch and Recieveing Cut Off Notes: New Terminal opened September 7, Rail terminal is immediately adjacent and is operated by APM Terminals. 2 additonal RTG in Rail Terminal. Container Yard Storage Capacity Exhibit 74 summarizes land use at the Port of Virginia. The combined acreage of the container terminals is 910 acres. The net terminal area is 569 acres creating net land use of 63%, with a CY/gross ratio of 40%. As anticipated, NNMT which is a mixed use terminal has the lowest net/gross ratio. Only the southern portion of the Norfolk International Terminals was evaluated Page 60

69 in this effort; the northern portion contains finger piers and covered storage. The CY/Gross ratios in Exhibit 67 are low compared to other ports due to the mix of uses at NIT and NNMT and the undeveloped area at APM. Exhibit 74: Port of Virginia Land Use Port Land Use NIT NNMT PMT VPA Total APM Virginia Port Total Gross Acres CY Acres Rail Acres Other Non-CY Acres Net Berth/Gate/Yard Acres CY/Gross Ratio 48% 16% 50% 42% 34% 40% Exhibit 75 applies standard CY storage factors to the port acreage from Exhibit 74. Applying standard CY storage factors yields an estimated combined total of 68,360 TEU slots for the four terminals. Annual CY sustainable TEU capacity is estimated to be 3.1 million TEU for the VPA terminals only, producing annual utilization of 83% relative to 2008 volume of 2.1 million TEU. The CY utilization rate points to the need for the future development of the Craney Island terminal facility. Exhibit 75: Port of Virginia Near Term CY Storage Capacity Container Yard Capacity NIT NNMT PMT VPA Total APM Virginia Port Total Wheeled Chassis Slots 3, ,200 5,480 1,200 6,680 Grounded Straddle Carrier Slots 16,960-8,720 25,680-25,680 Grounded Stacked Slots 1, ,800 6,000-6,000 Grounded RTG Slots - 5,100 2,400 7,500-7,500 Grounded RMG Slots ,500 22,500 TEU Storage Slots 21,600 5,940 17,120 44,660 23,700 68,360 Avg TEU Slots/CY Acre Maximum Annual Slot Turnover Maximum Annual CY TEU Capacity 1,512, ,800 1,198,400 3,126,200 1,659,000 4,785,200 Sustainable CY TEU 80% 1,209, , ,720 2,500,960 1,327,200 3,828, Annual TEU ,083, TEU per CY Slot CY Capacity Utilization 83% Crane Capacity Exhibit 76 summarizes the Port of Virginia container cranes and their estimated capacity. A total of 34 container cranes operate at the four Virginia container terminals. Older cranes are gradually being replaced and supplemented with post-panamax and Suez-class varieties. NNMT is the only terminal that does not have Post Panamax cranes. Annual crane capacity for the port is estimated to be 8.6 million TEU with 2008 utilization at the VPA terminals estimated at 30%. Page 61

70 Exhibit 76: Port of Virginia Near-term Crane Capacity Crane Capacity NIT NNMT PMT VPA Total APM Virginia Port Total Cranes Available Crane Hours per Day Current Annual Operating Days Current Annual Hours/Crane 4,000 4,000 4,000 4,000 4,000 4,000 Annual Available Crane Hours 56,000 20,000 36, ,000 24, ,000 Sustainable 80% 44,800 16,000 28,800 89,600 19, ,800 Avg. TEU/Available Crane-hour Avg. Annual TEU/Crane ,403 - Crane Capacity, Moves/hour Sustainable 80% Port average TEU/container Crane Capacity TEU/hour Annual Crane Capacity 3,528,000 1,260,000 2,268,000 7,056,000 1,512,000 8,568,000 Current Annual TEU ,083,278 - Current Crane Utilization 30% Berth Capacity The Port of Virginia s berth capacity estimated in TEU for the maximum vessel size is summarized in Exhibit 77. This estimate generates near-term berth capacity of 4.5 million TEU and berth utilization of 46%. Exhibit 77: Port of Virginia Near Term Berth Capacity Maximum Vessel Basis Berth Capacity - Max Vessel Basis NIT NNMT PMT VPA Total Berths Berth length 6,000 1,920 3,540 11,460 Berth Depth - Feet Max Sailing Draft Corresponding Design 95% Corresponding DWT 85,099 85,099 54,506 85,099 Nominal Max Vessel TEU 6,967 6,967 4,419 6,967 Corresponding Vessel Length - Feet 1,000 1, ,000 Vessel Spacing (Beam) Length requirement 1,120 1,120 1,005 1,120 Available Berths for Max Vessel Port average TEU/container TEU 2,128,366 Avg. TEU/Vessel 1,097 Avg. Vessel DWT 48,220 Average Est. Vessel Capacity TEU 3,895 Average Discharge & Load % 28% Average TEU per Max Vessel 1,962 Max annual calls per berth 260 Sustainable Calls per 80% Total Sustainable Vessel Calls ,288 Annual Berth Capacity TEU ,489, Annual TEU ,083,278 Berth Utilization, Max Vessel Basis 46% Berth capacity for all of the Port of Virginia terminals based on vessel calls is summarized in Exhibit 78 This approach generates a berth capacity estimate of 3,640 vessel calls and a berth utilization of 53% based on 2007 vessel calls. Page 62

71 Exhibit 78: Port of Virginia Berth Capacity Vessel Call Basis Berth Utilization - Vessel Call Basis NIT PMT NNMT APM Virginia Port Total Max annual calls per berth Sustainable Calls per 80% Available Berths Total Sustainable Vessel Calls 1, , Vessel calls 1, Berth Utilization 67% The Port of Virginia is pursuing a 55-foot channel depth to handle larger bulk vessels as well as the expected influx of large container ships form the new Panama Canal locks. Capacity and Productivity Summary Exhibit 79 summarizes the capacity and productivity analysis for CY space, container cranes, and vessel berths for the Port of Hampton Roads. The port currently has estimated sustainable CY capacity of 4.8 million TEU, with VPA utilization at 83%. Current crane capacity for the port s 34 cranes is estimated to be 8.6 million TEU with VPA utilization at 30%. Berth capacity utilization on a vessel call basis is estimated to be 53%. On a TEU basis berth capacity at VPA ports is estimated to be 4.4 million TEU with utilization of 46%. Page 63

72 Exhibit 79: Port of Hampton Roads Near Term Capacity and Productivity Summary Terminal Space NIT NNMT PMT VPA APM Virginia Port Total 2008 TEU 2,083,278 Gross Acres CY Acres CY/Gross Ratio 48% 16% 50% 42% 34% 40% Annual CY Capacity - TEU 1,512, ,800 1,198,400 3,126,200 1,659,000 4,785,200 Annual TEU/Gross Acre ,064 - Annual TEU/CY Acre ,335 - Est. CY TEU Slots 21,600 5,940 17,120 44,660 23,700 68,360 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 83% Container Cranes NIT NNMT PMT VPA APM Virginia Port Total Cranes Cranes per Berth Annual Crane Capacity - TEU 3,528,000 1,260,000 2,268,000 7,056,000 1,512,000 8,568,000 Avg. Moves/Available Crane-Hour Annual TEU/Crane ,403 Annual Moves/Crane ,335 Annual Vessel Calls/Crane (2007) 69 Crane Utilization 30% Berths and Vessels NIT NNMT PMT VPA APM Virginia Port Total Berths Berth Feet 6,000 1,920 3,540 11,460 3,200 14,660 Annual Vessel Calls per Berth (2007) Berth Utilization - Vessel Call Basis 53% Annual TEU per Berth ,328 Annual TEU/Foot of Berth Average Vessel Capacity - TEU ,895 Est. Max. Vessel Capacity - TEU 6,967 Avg. vs. Max. Vessel Capacity 56% Average TEU per Vessel (2007) ,097 Avg. Vessel Utilization - % Discharge/Load 28% Berth Capacity - Avg. Vessel Basis ,510,155 Berth Utilization - Avg. Vessel Basis 83% Avg. Discharge/Load per Max. Vessel 1,962 Berth Capacity - Max. Vessel Basis 4,489,798 Berth Utilization - Max. Vessel Basis 46% Page 64

73 IV. South Atlantic Ports South Atlantic Summary Exhibit 80 displays the capacity and utilization estimates for the major South Atlantic ports. Savannah is the busiest at 39% of the 2008 TEU total, but the shares are more evenly distributed than in the North Atlantic. The Miami total shown in Exhibit 80 excludes barge traffic through the Seaboard terminal. All of these ports have significant reserve capacity, although Charleston and Savannah could become berth constrained if the average size stays low. Most of the reserve capacity is at Charleston and Savannah. Exhibit 80: South Atlantic Capacity and Utilization Summary Container Yard Charleston Savannah Jacksonville Port Everglades Miami S. Atlantic Ports 2008 TEU 1,635,534 2,616, , , ,139 6,676,245 Gross Acres 1,045 1,200 1, ,839 CY Acres ,715 CY/Gross Ratio 43% 41% 33% 85% 72% 45% Annual CY Capacity - TEU 6,605,760 7,238,560 3,090,080 2,318,400 1,292,480 20,545,280 Reserve CY Capacity - TEU 4,970,227 4,622,434 2,335,728 1,333, ,341 13,869,035 Annual TEU/Gross Acre 1,565 2, ,127 3,532 1,739 Annual TEU/CY Acre 3,610 5,285 2,090 3,689 4,929 3,893 Est. CY TEU Slots 117, ,260 55,180 41,400 23, ,880 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 25% 36% 24% 42% 53% 32% Container Cranes Charleston Savannah Jacksonville Port S. Atlantic Miami Everglades Ports Cranes Cranes per Berth Annual Crane Capacity - TEU 4,642,917 5,777,192 4,536,000 2,016,000 2,205,877 19,177,987 Reserve Crane Capacity - TEU 3,007,384 3,161,066 3,781,648 1,030, ,501,742 Annual TEU/Crane 86, ,745 41, ,137 76,127 86,704 Annual Moves/Crane 49,317 63,397 23,282 68,409 43,484 48,739 Crane Utilization 35% 45% 17% 49% 31% 35% Berths and Vessels Charleston Savannah Jacksonville Port S. Atlantic Miami Everglades Ports Berths Berth Feet 7,940 9,693 9,850 6,125 5,000 38,608 Annual Vessel Calls (2007) 1,589 1, ,963 Annual Vessel Calls per Berth (2007) Berth Utilization - Vessel Call Basis 85% 77% 39% 44% 51% 54% Reserve Berth Capacity - Vessel Calls Annual TEU per Berth 181, ,681 68, ,137 97, ,733 Annual TEU/Foot of Berth Average Vessel Capacity - TEU 3,895 4,200 3,895 2,764 3,737 3,727 Average TEU per Vessel (2007) 1,104 1, , ,345 Avg. Vessel Ute. - % Discharge/Load 28% 34% 22% 46% 25% 36% Berth Capacity - Avg. Vessel Basis 1,377,887 2,698,084 1,956,868 1,602, ,201 8,599,152 Berth Utilization - Avg. Vessel Basis 119% 97% 39% 61% 71% 78% Reserve Berth Capacity - Avg. Vessel Basis (257,647) 81,958 1,202, , ,062 1,922,907 Reserve Berth Capacity - Max. Vessel Basis 497,746 (3,418) 963,650 1,371, ,170 3,193,986 Exhibit 81 displays the reported channel/berth drafts and associated vessel data for the South Atlantic ports. The channel and berth depths are shallower than on the North Atlantic, and the Page 65

74 ports shown will not be bale to handle the larger post-expansion vessels that could transit the Panama Canal without completion of dredging projects. Exhibit 81: South Atlantic Drafts and Vessels Port Berths and Vessels Charleston Savannah Jacksonville Miami Everglades Nominal Maximum Channel/Berth Draft Feet Estimated Maximum Vessel TEU 6,031 4,067 3,420 4,067 4, Average Vessel TEU 3,895 4,200 3,895 2,764 3, Average Vessel Discharge/Load 1,104 1, , Port of Charleston Overview The Port of Charleston has five terminals owned and operated by the South Carolina State Port Authority (SCSPA). Three of these terminals are container terminals: Wando Welch, Columbus Street, and North Charleston. The two other terminals, Union Pier and Veterans Terminal, handle break bulk, Ro-Ro, and project cargo. SCSPA staff operate the container cranes, run container yard equipment, and operate gates at all container terminals, with the exception of terminal space utilized by licensed operators. In these terminal areas the licensed operators operate their own yards and gates. Total 2008 port volume was 1,635,534 TEU. Exhibit 82 is an aerial view of the port showing the location and relative size of each terminal. In this view the access to the Atlantic Ocean is at the bottom of the photo. The photo also shows the location of a proposed new terminal located at the former Charleston Navy Base. Page 66

75 Exhibit 82: Port of Charleston Wando Welch terminal is the port s largest container operation handling 62% of the port s 2008 volume. Exhibit 83 provides a profile. Wando Welch is a dedicated container terminal utilizing 361 acres. It has 4 berths with total berth length of 3800 feet. Terminal operator APM is a licensed operator and operates a 160 acre facility within the terminal. Page 67

76 Exhibit 83: Wando Welch Terminal Profle date: Sept. 29, TEU: 1,011,302 Port: Charleston Total Acres: 689 Terminal: Wando Welch CY Acres: Terminal Type: Container On-Dock Rail Acres: 0 Address: Operator (Stevedore): CONTAINER TERMINAL PROFILE 400 Long Point Rd. Other Non-CY Acres: Mt. Pleasant, SC Net Terminal Acres: 361 developed SCSPA (Common Use Terminal) and APM Terminals Berths: 4 Contact Name: Billy Crowther Total Berth Length: 3,800 Telephone Number: WWT ; APM Channel Depth (MLLW): 47 Fax Number: WWT ; APM Berth Depth (MLLW): 45 Address: bcrowther@scspa.com Panamax Container Cranes: Port Website: portofcharleston.com Post-Panamax Container Cranes: 10 Terminal Website: CY Rail-Mounted Gantries: 6 Inbound Gates: 12 CY Rubber-Tired Gantries: 30 Outbound Gates: 6 CY Side or Top Loaders: 19 toplifters Reversible Gates: CY Straddle Carriers: Total Gates: 18 CY Reach Stackers: 12 empty handlers On-Line Access System: SCSPA System for common use. APMT for Maersk yard Total CY Lift Machines 36 Appointment System: SCSPA System for common use. APMT for Maersk yard On-site M&R (yes/no): Yes Reefer Plugs/Slots: 438 On-dock Rail (yes/no): No Terminal Hours: APM Terminal: Mon Fri , Common Use Terminal no information. Gate Hours: APM Terminal: Mon Fri , Common Use no lunch closure. Notes: APM terminals is a "licensed facility operator" at Wando Terminal with its own 160 acre facility. There are separate gates for Common Use Terminal and APM Terminals. North Charleston is the Port s second largest container terminal handling 27% of Charleston s 2008 volume. It is a mixed use terminal which can handle break bulk and Ro-Ro cargoes in Page 68

77 addition to containers. Exhibit 84 provides the terminal profile and Exhibit 85 is a schematic drawing of the terminal. The terminal utilizes 198 acres and operates three berths totaling 2500 feet in length. Ceres Marine Terminals is a licensed operator at North Charleston and utilizes over 50 acres of the terminal acreage Exhibit 84: North Charleston Terminal Profile Profle date: Sept. 29, TEU: 449,424 Port: Charleston Total Acres: 201 Terminal: North Charlston CY Acres: 129 Terminal Type: Container, breakbulk and roro On-Dock Rail Acres: Address: 1000 Remount Road Other Non-CY Acres: North Charleston, SC Net Terminal Acres: 198 developed Operator (Stevedore): SCSPA and Ceres Marine Terminals Berths: 3 Contact Name: David Hoffman Total Berth Length: 2,500 Telephone Number: Fax Number: Common Use ; Ceres Common Use ; Ceres Channel Depth (MLLW): 47 Berth Depth (MLLW): 45 Address: dhoffman@scspa.com Panamax Container Cranes: Port Website: portofcharleston.com Post-Panamax Container Cranes: 6 Terminal Website: CY Rail-Mounted Gantries: 2 Inbound Gates: 4 (licensed operator) CY Rubber-Tired Gantries: 10 Outbound Gates: 3 (licensed operator) CY Side or Top Loaders: 12 Reversible Gates: 9 (common use) CY Straddle Carriers: Total Gates: 16 CY Reach Stackers: 5 empty handlers On-Line Access System: SCSPA System for common use. Ceres TOS. Total CY Lift Machines 24 Appointment System: SCSPA System for common use. Ceres TOS. On-site M&R (yes/no): Yes Reefer Plugs/Slots: 365 On-dock Rail (yes/no): Near Dock Terminal Hours: Gate Hours: CONTAINER TERMINAL PROFILE Security 24/7. Terminal operations 24/7 as needed except ILA no-work holidays no lunch closure (common use). Notes: Ceres Marine Terminals is a licensed terminal operator at North Charleston. Ceres operates the Evergreen terminal at North Charleston which occupies 25-30% of the terminal acreage. There is a common gate for both SCSPA and Ceres Terminal. Page 69

78 Exhibit 85: North Charleston Terminal Drawing Columbus Street is the smallest of Charleston s three container terminals. It handled 11% of the port s 2008 container volume. Exhibit 86 is an aerial view. Columbus Street handles both breakbulk and container cargo. The terminal utilizes 135 developed acres and has six berths with 3500 continuous feet of berth space. The two berths for container ships are 1640 feet. Ceres Marine Terminals is a licensed operator at Columbus Street and utilizes 74 acres of the facility. Exhibit 86: Columbus Street Terminal Exhibit 87 provides a profile of the Columbus Street terminal. Page 70

79 Exhibit 87: Columbus Street Terminal Profile Profle date: Sept. 29, TEU: 174,808 Port: Charleston Total Acres: 155 Terminal: Columbus St. Terminal CY Acres: 81.6 Terminal Type: Container & Breakbulk On-Dock Rail Acres: Address: 1 Immigration St. Other Non-CY Acres: Charleston, NC Net Terminal Acres: 135 developed Operator (Stevedore): SCSPA & Ceres Marine Terms. Berths: 2 container 6 breakbulk 2 Contact Name: John Martin Terminal Mgr Total Berth Length: (container) 1,640 Telephone Number: ; CMT Channel Depth (MLLW): 47 Fax Number: ; CMT Berth Depth (MLLW): 45 Address: hnorton@scspa.com Panamax Container Cranes: 1 Port Website: portcharleston.com Post-Panamax Container Cranes: 2 Terminal Website: CY Rail-Mounted Gantries: 2 Inbound Gates: CY Rubber-Tired Gantries: 3 Outbound Gates: CY Side or Top Loaders: 13 toplifters Reversible Gates: 5 CY Straddle Carriers: Total Gates: 5 CY Reach Stackers: On-Line Access System: SCSPA System for common use. Ceres TOS. Total CY Lift Machines 18 Appointment System: SCSPA System for common use. Ceres TOS. On-site M&R (yes/no): Reefer Plugs/Slots: 128 On-dock Rail (yes/no): Yes Terminal Hours: Gate Hours: CONTAINER TERMINAL PROFILE Security 24/7. Terminal operations 24/7 as needed except ILA no-work holidays no lunch closure (common use). Notes: 78 acres (74 leased to ocean carriers operated by Ceres, 4 operated by SCSPA). 128 reefer plugs on Ceres operated terminal. 6 berths (2 container 4 breakbulk). Berth Length: total 3500 feet with 1640 feet of container berth. Container Yard Storage Capacity Exhibit 88 summarizes land use at the Port of Charleston. The combined area of the three container terminals is 1,045 acres with net terminal area of 717 acres. This generates a net to gross land use ratio of 69%, and a CY/Gross ratio of 43%. Land use at Columbus Street and North Charleston are at 100%. Only the Wando Welch terminal appears to have any available land with a net to gross ratio of 52%. It is unclear to what extent the port can develop additional land at the Wando Welch terminal. Exhibit 88: Port of Charleston Land Use Port Land Use Columbus North Wando St. Charleston Welch Port Total Gross Acres ,045 CY Acres Rail Acres Other Non-CY Acres Net Berth/Gate/Yard Acres CY/Gross Ratio 53% 64% 35% 43% Page 71

80 Exhibit 89 applies standard CY storage factors to the port acreage. Virtually all of the CY operation is grounded. Based on interpretation of aerial photographs it was estimated the combined CY area in use was 453 acres producing an estimated 117,960 storage slots. Annual CY sustainable TEU capacity is estimated at 6.6 million TEU. This produces annual utilization of 25% relative to 2008 volume of 1.6 million TEU. This analysis indicates that all three terminals have sufficient CY capacity to handle future growth. Exhibit 89: Port of Charleston Near Term CY Storage Capacity Container Yard Capacity Columbus North Wando St. Charleston Welch Port Total Wheeled Chassis Slots Grounded Straddle Carrier Slots Grounded Stacked Slots 11,800 12,800 16,800 41,400 Grounded RTG Slots 4,200 16,200 39,600 60,000 Grounded RMG Slots 3,240 3,960 9,360 16,560 TEU Storage Slots 19,240 32,960 65, ,960 Avg TEU Slots/CY Acre Maximum Annual Slot Turnover Maximum Annual CY TEU Capacity 1,346,800 2,307,200 4,603,200 8,257,200 Sustainable CY TEU 80% 1,077,440 1,845,760 3,682,560 6,605, Annual TEU 174, ,424 1,011,302 1,635, TEU per CY Slot CY Capacity Utilization 16% 24% 27% 25% Crane Capacity Exhibit 90 provides a summary of the Port of Charleston s cranes and an estimate of crane capacity. The port operates 19 cranes at its three terminals. Annual crane capacity for the port is estimated to be 4.6 million TEU with 2008 utilization at 35 %. The Wando Welch terminal has the highest capacity utilization at 41%. Exhibit 90: Port of Charleston Near Term Crane Capacity Crane Capacity Columbus North Wando St. Charleston Welch Port Total Cranes Available Crane Hours per Day Current Annual Operating Days Current Annual Hours/Crane 4,000 4,000 4,000 4,000 Annual Available Crane Hours 12,000 24,000 40,000 76,000 Sustainable 80% 9,600 19,200 32,000 60,800 Avg. TEU/Available Crane-hour Avg. Annual TEU/Crane 58,269 74, ,130 86,081 Crane Capacity, Moves/hour Sustainable 80% Port average TEU/container Crane Capacity TEU/hour Annual Crane Capacity 733,092 1,466,184 2,443,641 4,642,917 Current Annual TEU 174, ,424 1,011,302 1,635,534 Current Crane Utilization 24% 31% 41% 35% Page 72

81 Berth Capacity The Port of Charleston berth capacity estimated in TEU for the maximum vessel size is summarized in Exhibit 91. This estimate generates near term berth capacity of 2.7 million TEU and berth utilization of 77 %. The Wando terminal has the highest estimated utilization at 95%. Exhibit 91: Port of Charleston Near Term Berth Capacity Maximum Vessel Basis Berth Capacity - Max Vessel Basis Columbus North Wando St. Charleston Welch Port Total Berths Berth length 1,640 2,500 3,800 7,940 Berth Depth - Feet Max Sailing Draft Corresponding Design 95% Corresponding DWT 73,856 73,856 73,856 73,856 Nominal Max Vessel TEU 6,031 6,031 6,031 6,031 Corresponding Vessel Length - Feet 1,000 1,000 1,000 1,000 Vessel Spacing (Beam) Length requirement 1,120 1,120 1,120 1,120 Available Berths for Max Vessel Port average TEU/container TEU 1,754,377 Avg. TEU/Vessel 1,104 Avg. Vessel DWT 48,220 Average Est. Vessel Capacity TEU 3,895 Average Discharge & Load % 28% Average TEU per Max Vessel 1,709 1,709 1,709 1,709 Max Calls per Berth 5/wk Sustainable Calls per 80% Total Sustainable Vessel Calls ,248 Annual Berth Capacity TEU 355, ,093 1,066,640 2,133, Annual TEU 174, ,424 1,011,302 1,635,534 Berth Utilization, Max Vessel Basis 49% 63% 95% 77% Berth capacity based on vessel calls is summarized in Exhibit 92. This approach generates a berth capacity estimate of 1,872 calls and 2007 port berth utilization of 85%. Exhibit 92: Charleston 2007 Berth Capacity Vessel Call Basis Berth Utilization - Vessel Call Basis Columbus North Wando St. Charleston Welch Port Total Max Calls per Berth 5/wk Sustainable Calls per 80% Available Berths Total Sustainable Vessel Calls , Vessel calls 1, Berth Utilization 85% Capacity and Productivity Summary Exhibit 93 summarizes the capacity and productivity analysis for CY space, container cranes, and vessel berths for the Port of Charleston. The port currently has estimated sustainable annual Page 73

82 CY capacity of 6.6 million TEU with current utilization at 25%. This analysis indicates that all three terminals of the port have reserve CY capacity for future growth. Container crane capacity at the port is estimated at 4.6 million TEU with current capacity at 35%. The Wando Welch terminal has the highest utilization at 41%. The analysis indicates that the port has reserve crane capacity for future growth. In 2007 the port averaged 177 annual calls per berth. This produced berth utilization of 85% using a sustainable capacity of 208 annual calls per berth. Berth capacity on a TEU basis is estimated to be 2.7 million TEU on a maximum vessel call basis. This produces a 2008 capacity utilization estimate of 79%. Data for containership calls by terminal was not available. Therefore berth utilization by terminal could not be estimated. It should also be noted that the SCSPA website advertises port capacity at 2.6 million TEU. This figure is consistent with the berth capacity estimate of 2.7 million TEU. The SCSPA s major terminal capacity expansion project is the development of a new container terminal at the former Charleston Navy Base. This terminal will be a 280-acre facility with 3 berths and 1.4 million TEU capacity. Construction of the new terminal has started and completion of the first phase is projected for South Carolina and Georgia are seeking to work cooperatively to develop a new marine terminal on the Savannah River in Jasper County. Page 74

83 Exhibit 93: Port of Charleston Near Term Capacity and Productivity Summary Terminal Space Columbus St. North Charleston Wando Welch Charleston 2008 TEU 174, ,424 1,011,302 1,635,534 Gross Acres ,045 CY Acres CY/Gross Ratio 53% 64% 35% 43% Annual Sustainable CY TEU 80% 1,077,440 1,845,760 3,682,560 6,605,760 Annual TEU/Gross Acre 1,128 2,236 1,468 1,565 Annual TEU/CY Acre 2,132 3,484 4,179 3,610 Est. CY TEU Slots 19,240 32,960 65, ,960 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 16% 24% 27% 25% Container Cranes Columbus St. North Charleston Wando Welch Charleston Cranes Cranes per Berth Annual Crane Capacity - TEU 733,092 1,466,184 2,443,641 4,642,917 Avg. Moves/Available Crane-Hour Annual TEU/Crane 58,269 74, ,130 86,081 Annual Moves/Crane 33,383 42,914 57,939 49,317 Annual Vessel Calls/Crane (2007) Crane Utilization 24% 31% 41% 35% Berths and Vessels Columbus St. North Charleston Wando Welch Charleston Berths Berth Feet 1,640 2,500 3,800 7,940 Annual Vessel Calls per Berth (2007) 177 Berth Utilization - Vessel Call Basis 85% Annual TEU per Berth 87, , , ,726 Annual TEU/Foot of Berth Average Vessel Capacity - TEU 3,895 Est. Max. Vessel Capacity - TEU 6,031 6,031 6,031 6,031 Avg. vs. Max. Vessel Capacity 65% Average TEU per Vessel (2007) 1,104 Avg. Vessel Utilization - % Discharge/Load 28% Berth Capacity - Avg. Vessel Basis 1,377,887 Berth Utilization - Avg. Vessel Basis 119% Avg. Discharge/Load per Max. Vessel 1,709 Berth Capacity - Max. Vessel Basis 2,133,279 Berth Utilization - Max. Vessel Basis 77% Georgia Port Authority (GPA) Port of Savannah Overview The Port of Savannah has one large container terminal, the Garden City Terminal. Exhibit 94 provides an aerial view. The terminal is located on the Savannah River 13 miles from the Atlantic Ocean. The GPA s Garden City property includes a total of 1200 acres with the terminal and associated rail facilities covering 625 acres. The Garden City Terminal also handles liquid bulk products. The Garden City container terminal is the largest single container port facility in North America. The terminal is owned and operated by GPA. Exhibit 94 identifies the key features of the terminal and Exhibit 95 provides a summary of terminal information. Page 75

84 The terminal operates nine container berths with 9693 feet of berth and includes two on-dock rail intermodal terminals. GPA provides 23 container cranes for its operation. The port has two rail facilities. The Mason ICTF is served by Norfolk Southern and the Chatham ICTF is served by CSX. The CY operation covers 495 acres and is principally a stacked operation utilizing RTG and top lift equipment port volume was 2,616,162 TEU. Exhibit 94: Garden City Container Terminal Source: Google Earth Image date February 29, 2008 Over the next 10 years, Garden City Terminal is scheduled to add on average two high-speed super post-panamax container cranes every 18 months for a total of 25 cranes, as well as 86 Rubber-Tired Gantries (RTG) as part of long-term developments for a full RTG conversion at the facility. Page 76

85 Exhibit 95: Garden City Terminal Profile CONTAINER TERMINAL PROFILE Profle date: Sept. 29, TEU: 2,616,162 Port: Georgia Port Authority Total Acres: 1200 Terminal: Garden City CY Acres: 495 Terminal Type: Container and Liquid bulk On-Dock Rail Acres: 50 Address: 2 Main St. Other Non-CY Acres: 80 Garden City, GA Net Terminal Acres: 575 Operator (Stevedore): GPA Berths: 9 Contact Name: John Trent Total Berth Length: 9,693 Telephone Number: ; Channel Depth (MLLW): 42 MLW Fax Number: Berth Depth (MLLW): 42 MLW Address: jtrent@gaports.com Panamax Container Cranes: 0 Port Website: Post-Panamax Container Cranes: 23 Terminal Website: CY Rail-Mounted Gantries: 0 Inbound Gates: 25 with pre check CY Rubber-Tired Gantries: 71 Outbound Gates: 37 lanes (In and Out) CY Side or Top Loaders: 40 Reversible Gates: All CY Straddle Carriers: 0 Total Gates: 37 CY Reach Stackers: 0 On-Line Access System: webaccess.gaports.com Total CY Lift Machines 111 Appointment System: Yes (Pre-advise - 98% Compliance) On-site M&R (yes/no): Yes Reefer Plugs/Slots: 852 On-dock Rail (yes/no): yes (2 term's) Terminal Hours: M-F , Sat and Gate Hours: M-F , Sat and Notes: Gate 3-14 lanes, Gate 4-17 lanes, Gate 6-6 lanes (37 lanes with 25 pre-check lanes). 852 reefer plugs, 10 portable generators. 46 RTG s, 24 five high toplifts, 16 four high toplifts, 56 seven high empty stackers. Mason ICTF (NS served) is contiguous to the marine terminal, Chatham ICTF (CSX served) is on terminal. Container Yard Storage Capacity Exhibit 96 summarizes the land use at GPA s Garden City Terminal. The container terminal utilizes about 625 acres which includes 50 acres for two rail terminals. The gross terminal acreage of 1200 acres includes about 60 acres for the liquid bulk terminal, about 10 acres for the GPA administration building and over 500 acres of undeveloped land. This high gross acreage is the reason for the low CY to gross ratio of 52%. Page 77

86 Exhibit 96: Garden City Land Use Port Land Use Garden City Port Total Gross Acres 1,200 1,200 CY Acres Rail Acres Other Non-CY Acres Net Berth/Gate/Yard Acres CY/Gross Ratio 41% 41% Exhibit 97 applies standard CY storage factors to the Garden City CY acreage. Virtually all of the CY operation is grounded, primarily using RTG and top lift equipment for container handling. The only wheeled area is the 12-acre rapid dispatch area utilized for high priority shipments. Based on interpretation of the aerial photos it was estimated that 70% of the 483 acre CY area or 340 acres utilized RTG equipment and the remaining 143 acres utilized top lift equipment. This acreage allocation generated an estimate of 129,260 storage slots with annual sustainable CY capacity of 7.2 million TEU. This produces capacity utilization of 36% relative to 2008 volume of 2.6 million TEU. Crane Capacity Exhibit 97: Garden City Near Term CY Storage Capacity Container Yard Capacity Garden City Port Total Wheeled Chassis Slots Grounded Straddle Carrier Slots - - Grounded Stacked Slots 33,200 33,200 Grounded RTG Slots 95,100 95,100 Grounded RMG Slots - - TEU Storage Slots 129, ,260 Avg TEU Slots/CY Acre Maximum Annual Slot Turnover Maximum Annual CY TEU Capacity 9,048,200 9,048,200 Sustainable CY TEU 80% 7,238,560 7,238, Annual TEU 2,616,126 2,616, TEU per CY Slot CY Capacity Utilization 36% 36% Exhibit 98 summarizes the Garden City Terminal s estimate of container crane capacity for its 23 cranes. Annual crane capacity is estimated at 5.8 million TEU with current utilization of 45%. Page 78

87 Berth Capacity Exhibit 98: Garden City Terminal Near Term Crane Capacity Crane Capacity Garden City Port Total Cranes Available Crane Hours per Day Current Annual Operating Days Current Annual Hours/Crane 4,000 4,000 Annual Available Crane Hours 92,000 92,000 Sustainable 80% 73,600 73,600 Avg. TEU/Available Crane-hour Avg. Annual TEU/Crane 113, ,745 Crane Capacity, Moves/hour Sustainable 80% Port average TEU/container Crane Capacity TEU/hour Annual Crane Capacity 5,777,192 5,777,192 Current Annual TEU 2,616,126 2,616,126 Current Crane Utilization 45% 45% Garden City berth capacity estimated in TEU for the maximum vessel size is summarized in Exhibit 99. This estimate generates near-term capacity of 2.6 million TEU and berth utilization of 100%. Exhibit 99: Garden City Terminal Near Term Berth Capacity Max Vessel Basis Berth Capacity - Max Vessel Basis Garden City Port Total Berths 9 9 Berth length 9,693 9,693 Berth Depth - Feet Max Sailing Draft Corresponding Design 95% Corresponding DWT 50,280 50,280 Nominal Max Vessel TEU 4,067 4,067 Corresponding Vessel Length - Feet Vessel Spacing (Beam) Length requirement 1,005 1,005 Available Berths for Max Vessel Port average TEU/container TEU 2,604,401 2,604,401 Avg. TEU/Vessel 1,441 1,441 Avg. Vessel DWT 51,875 51,875 Average Est. Vessel Capacity TEU 4,200 4,200 Average Discharge & Load % 34% 34% Average TEU per Max Vessel 1,396 1,396 Max Calls per berth 5 / wk Sustainable Calls per 80% Total Sustainable Vessel Calls 1,872 1,872 Annual Berth Capacity TEU 2,612,708 2,612, Annual TEU 2,616,126 2,616,126 Berth Utilization, Max Vessel Basis 100% 100% Page 79

88 Berth capacity based on vessel calls is summarized in Exhibit 100. This approach generates a berth capacity estimate of 1,872 calls and 2007 berth utilization of 97%. Exhibit 100: Garden City 2007 Berth Capacity Vessel Call Basis Berth Utilization - Vessel Call Basis Garden City Port Total Max Calls per berth 5 / wk Sustainable Calls per 80% Available Berths 9 9 Total Sustainable Vessel Calls 1,872 1, Vessel calls 1,807 1, Berth Utilization 97% 97% Current Capacity and Productivity Summary Exhibit 101 summarizes the capacity and productivity analysis for CY space, container cranes, and vessel berths for the Garden City Terminal. The terminal currently has estimated annual sustainable CY storage capacity of 7.2 million TEU with current utilization at 36%. This indicates that Garden City has plenty of reserve capacity CY for future growth. The port also has a plan to add an additional 15 rubber-tired gantry cranes to reach a total of 86 cranes as it converts to a full RTG CY operation. In addition, there appear to be several hundred acres of undeveloped land that may be available for future development. Container crane capacity for the terminal s 23 cranes is estimated at 5.8 million TEU with current utilization of 45%. In addition, the GPA website indicates that there is a plan to add 2 additional cranes to reach a total of 25 cranes on the terminal. In 2007 Garden City averaged 201 calls per berth. This produced a utilization estimate of 97 % using standard capacity of 208 calls per berth. Berth capacity on a TEU basis was estimated at 2.6 million TEU with 100% utilization on a maximum vessel call basis. This analysis indicates that the Port of Savannah has adequate capacity CY to handle future growth. Berth capacity appears to the most constrained facility resource. However, larger vessel size and higher discharge rates could enable future volume growth and improved berth throughput. to accommodate the larger traffic necessary to keep up with demand, the Georgia Ports Authority is in the process of increasing the depth of the Savannah River Navigation Channel from 42 to 48 feet. Page 80

89 Exhibit 101: Garden City Near Term Capacity Summary Terminal Space Garden City Savannah 2008 TEU 2,616,126 2,616,126 Gross Acres 1,200 1,200 CY Acres CY/Gross Ratio 41% 41% Annual Sustainable CY TEU 80% 7,238,560 7,238,560 Annual TEU/Gross Acre 2,180 2,180 Annual TEU/CY Acre 5,285 5,285 Est. CY TEU Slots 129, ,260 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 36% 36% Container Cranes Garden City Savannah Cranes Cranes per Berth Annual Crane Capacity - TEU 5,777,192 5,777,192 Avg. Moves/Available Crane-Hour Annual TEU/Crane 113, ,745 Annual Moves/Crane 63,397 63,397 Annual Vessel Calls/Crane (2007) Crane Utilization 45% 45% Berths and Vessels Garden City Savannah Berths 9 9 Berth Feet 9,693 9,693 Annual Vessel Calls per Berth (2007) Berth Utilization - Vessel Call Basis 77% 77% Annual TEU per Berth 290, ,681 Annual TEU/Foot of Berth Average Vessel Capacity - TEU 4,200 4,200 Est. Max. Vessel Capacity - TEU 4,067 4,067 Avg. vs. Max. Vessel Capacity 103% 103% Average TEU per Vessel (2007) 1,441 1,441 Avg. Vessel Utilization - % Discharge/Load 34% 34% Berth Capacity - Avg. Vessel Basis 2,698,084 2,698,084 Berth Utilization - Avg. Vessel Basis 97% 97% Avg. Discharge/Load per Max. Vessel 1,396 1,396 Berth Capacity - Max. Vessel Basis 2,612,708 2,612,708 Berth Utilization - Max. Vessel Basis 100% 100% Port of Jacksonville Capacity Estimates Overview The Port of Jacksonville has three marine terminals owned and managed by the Jacksonville Port Authority (JAXPORT). These terminals are leased to its tenant ocean carriers and terminal operators. The terminals are located on the St. Johns River between 9 and 21 miles from the ocean. Blount Island is the largest terminal with about 754 total acres and 223 container terminal acres. Blount Island is about 9 miles from the Atlantic. The Talleyrand terminal is located in the City of Jacksonville about 21 miles from the ocean. Talleyrand has a total of 173 acres with 60 Page 81

90 acres allocated to its container operation. Both Blount Island and Talleyrand are mixed use terminals handling break bulk, liquid bulk, automobiles, and Ro-Ro in addition to containers. The third terminal Dames Point is a new 158 acre dedicated container terminal that opened in January Exhibit 102 is an aerial view of the port showing the location and size of these terminals Exhibit 102: Port of Jacksonville Marine Terminals Source: Google Earth Image Date December 31, 2007 Blount Island terminal is the Port s largest container operation handling about 70% of the 2009 container volume. Exhibit 103 provides a profile. The terminal operation utilizes about 223 acres. It has 6 berths with total berth length of 5,250 feet. The terminal has 6 Panamax container cranes which are leased to the terminal s tenants on hourly basis. Two new post Panamax cranes are on order with delivery expected in the fall of Blount Island also has a Ro-Ro operation which handles containers for the Puerto Rican and Caribbean trades. Page 82

91 Exhibit 103: Blount Island Terminal Profile Profile date: Sept. 29, TEU: 539,633 Port: Jacksonville, Florida Total Acres: 754 Terminal: Blount Island Marine Terminal CY Acres: 178 Terminal Type: Cont'r, RoRo,break & liquid bulk On-Dock Rail Acres: 0 Address: 9620 Dave Rawles Rd. Other Non-CY Acres: 45 Jacksonville, FL Net Terminal Acres: 223 Operator (Stevedore): Jacksonville Port Authority Berths: 6 Contact Name: Total Berth Length: 5,250 Telephone Number: Channel Depth (MLLW): 40' (MLW) Fax Number: Berth Depth (MLLW): 40 Address: Panamax Container Cranes: 6 Port Website: Post-Panamax Container Cranes: Terminal Website: Inbound Gates: Outbound Gates: Reversible Gates: Total Gates: CY Rail-Mounted Gantries: CY Rubber-Tired Gantries: CY Side or Top Loaders: CY Straddle Carriers: 0 CY Reach Stackers: On-Line Access System: Total CY Lift Machines 0 Appointment System: On-site M&R (yes/no): Reefer Plugs/Slots: On-dock Rail (yes/no): No Terminal Hours: Gate Hours: CONTAINER TERMINAL PROFILE Notes: The current estimate of CY space is 87 acres grounded and 91 acres wheeled. Most of the overall Blount Island terminal acreage is utilized for automobile processing, breakbulk and liquid bulk operations. The port has ordered two new Post Panamax cranes with delivery expected in fall of CSX, Norfolk Southern and FEC have intermodal terminals in Jacksonville. Talleyrand terminal is a mixed use terminal with 170 total acres. Exhibit 104 provides a profile. Talleyrand has the smallest container facility of the three JAXPORT terminals utilizing 60 acres for the terminal and 5 acres for a small on-dock rail facility. The terminal has 3 berths with 2200 feet of berth length and it is equipped with six container cranes. Page 83

92 Exhibit 104: Talleyrand Marine Terminal Profle date: Sept. 29, TEU: 164,441 Port: Jacksonville Total Acres: 173 Terminal: Talleyrand Marine Terminal CY Acres: 50 Terminal Type: Container, roro, break bulk On-Dock Rail Acres: 5 Address: 2085 Talleyrand Ave. Other Non-CY Acres: 10 Jacksonville, FL Net Terminal Acres: 60 Operator (Stevedore): Jacksonville Port Authority Berths: 3 Contact Name: Total Berth Length: 2200 Telephone Number: Channel Depth (MLLW): 38 (MLW) Fax Number: Berth Depth (MLLW): 38 Address: Panamax Container Cranes: 6 Port Website: Post-Panamax Container Cranes: Terminal Website: CY Rail-Mounted Gantries: Inbound Gates: CY Rubber-Tired Gantries: 2 Outbound Gates: CY Side or Top Loaders: 6 Reversible Gates: CY Straddle Carriers: Total Gates: 0 CY Reach Stackers: 1 On-Line Access System: Total CY Lift Machines 9 Appointment System: On-site M&R (yes/no): Reefer Plugs/Slots: On-dock Rail (yes/no): Yes Terminal Hours: Gate Hours: CONTAINER TERMINAL PROFILE Notes: The terminal has a small on dock rail facility served by the Talleyrand Terminal Railroad which connects to both CSX and NS. Dames Point Terminal is a new 158 acre dedicated container terminal that was opened in January A terminal profile and an artist s rendering of the completed terminal are provided in Exhibit 105. The terminal has 2 berths with a total of 2400 feet of berth length. The terminal is equipped with 6 Post-Panamax cranes and is operated by TraPac Inc., the marine terminal operating company subsidiary of ocean carrier Mitsui OSK Lines (MOL). Page 84

93 Exhibit 105: Dames Point Container Terminal Profile date: Sept. 29, TEU: 48,269 Port: Jacksonville, FL Total Acres: 158 Terminal: Dames Point (TraPac) CY Acres: 133 Terminal Type: Container On-Dock Rail Acres: 0 Address: 9834 New Berlin Road Other Non-CY Acres: 25 Jacksonville, FL Net Terminal Acres: 158 Operator (Stevedore): TraPac Terminals Berths: 2 Contact Name: Total Berth Length: 2,400 Telephone Number: Channel Depth (MLLW): 40 Fax Number: Berth Depth (MLLW): 40 Address: Panamax Container Cranes: Port Website: Post-Panamax Container Cranes: 6 Terminal Website: CY Rail-Mounted Gantries: Inbound Gates: CY Rubber-Tired Gantries: 6 Outbound Gates: Reversible Gates: Total Gates: CY Side or Top Loaders: CY Straddle Carriers: 0 CY Reach Stackers: On-Line Access System: Total CY Lift Machines 6 Appointment System: On-site M&R (yes/no): Reefer Plugs/Slots: On-dock Rail (yes/no): No Terminal Hours: Gate Hours: CONTAINER TERMINAL PROFILE Notes: This terminal was just completed and opened for operations in January Currently the terminal serves MOL, Hyundai and APL vessels. Volume levels are still low with about two vessels per week. The Port s shipping channel depth is currently maintained to 40 feet to for its first 15 miles from the ocean to Drummond Point, which is beyond both Blount Island and Dames Point terminals. However, the last 6 miles of the channel to the Talleyrand terminal are maintained to 38 feet. The Port has a dredging project in progress to increase the channel depth to Talleyrand to 40 feet. This project is expected to be completed by the end of Page 85

94 A second navigation issue that the Port is working on is to reduce tidal cross currents at Mile Point where the Intracoastal Waterway cuts through the St. Johns River about 5 miles from the ocean. Due to the effect of these cross currents from the intracoastal waterway, the operation of larger vessels with draft of 33 feet or greater is limited to less than 12 hours per day when incoming tides mitigate the cross currents. The Army Corps of Engineers currently has a study underway to address this issue. Container Yard Storage Capacity Exhibit 106 summarizes land use for the Port of Jacksonville. The combined total acreage for all three terminals in 1085 acres with net terminal area of 441 acres. This generates a net to gross ratio of only 41% and a CY/Gross ratio of only 33%. The reason is that both Blount Island and Talleyrand are mixed use terminals with most of the terminal area consumed in break bulk, automobile, and liquid bulk uses. Expansion of the container operations at these two terminals would require a reallocation of terminal property from existing non-container uses. Exhibit 106: Port of Jacksonville Land Use Port Land Use Jax Blount Jax Dames Jax Talleyrand Isl. Pt. Port Total Gross Acres ,085 CY Acres Rail Acres Other Non-CY Acres Net Berth/Gate/Yard Acres CY/Gross Ratio 24% 29% 84% 33% Exhibit 107 applies standard CY storage factors to the port acreage. Interpretation of aerial photos for Blount Island and Talleyrand indicates CY areas are primarily stacked operations. The new terminal at Dames Point is designed for RTG use. However, it appears that wheeled operations are being used because the terminal is new and volume levels do not require the additional CY capacity provided by grounded RTG operation. Overall this analysis shows that the three terminals have sufficient CY capacity to handle future growth. Container Yard Capacity Exhibit 107: Port of Jacksonville CY Storage Capacity Jax Blount Isl. Jax Talleyrand Jax Dames Pt. Port Total Wheeled Chassis Slots 7,280 1,200 6,400 14,880 Grounded Straddle Carrier Slots Grounded Stacked Slots 17,400 7,000-24,400 Grounded RTG Slots ,900 15,900 Grounded RMG Slots TEU Storage Slots 24,680 8,200 22,300 55,180 Avg TEU Slots/CY Acre Maximum Annual Slot Turnover Maximum Annual CY TEU Capacity 1,727, ,000 1,561,000 3,862,600 Sustainable CY TEU 80% 1,382, ,200 1,248,800 3,090, Annual TEU 539, ,441 48, , TEU per CY Slot CY Capacity Utilization 39% 36% 4% 24% Page 86

95 Crane Capacity Exhibit 108 provides a summary of Jacksonville cranes and an estimate of crane capacity. There are six cranes operated at each of the three facilities. Annual crane capacity for the port is estimated at 17%. The analysis shows there will be adequate crane capacity for future growth. In addition, the Port has two new cranes on order for Blount Island. It is also clear that the low volume levels at Dames Point have not yet tested the terminal s crane capacity. Exhibit 108: Port of Jacksonville Near Term Crane Capacity Crane Capacity Jax Blount Jax Dames Jax Talleyrand Isl. Pt. Port Total Cranes Available Crane Hours per Day Current Annual Operating Days Current Annual Hours/Crane 4,000 4,000 4,000 4,000 Annual Available Crane Hours 24,000 24,000 24,000 72,000 Sustainable 80% 19,200 19,200 19,200 57,600 Avg. TEU/Available Crane-hour Avg. Annual TEU/Crane 89,939 27,407 8,045 41,908 Crane Capacity, Moves/hour Sustainable 80% Port average TEU/container Crane Capacity TEU/hour Annual Crane Capacity 1,512,000 1,512,000 1,512,000 4,536,000 Current Annual TEU 539, ,441 48, ,352 Current Crane Utilization 36% 11% 3% 17% Berth Capacity The Port of Jacksonville berth capacity estimated in TEU for the maximum vessel size is summarized in Exhibit 109. This estimate generates near term berth capacity 1.7 million TEU with berth utilization for the port at 44%. However, the overall average is influenced by the low berth utilization estimate for Dames Point. Berth capacity on a vessel call basis is summarized in Exhibit 110. This approach generates berth a berth capacity estimate of 2860 vessel calls and 2009 estimated berth utilization of 31%. The Port has plans in progress to maintain its entire 21-mile approach channel to 41 feet, and there is a Corps study reportedly in progress to consider greater depths. Page 87

96 Exhibit 109: Port of Jacksonville Near Term Berth Capacity Max Vessel Basis Berth Capacity - Max Vessel Basis Jax Blount Jax Dames Jax Talleyrand Isl. Pt. Port Total Berths Berth length 5,250 2,200 2,400 9,850 Berth Depth - Feet Max Sailing Draft Corresponding Design 95% Corresponding DWT 42,512 35,611 42,512 42,512 Nominal Max Vessel TEU 3,420 2,845 3,420 3,420 Corresponding Vessel Length - Feet Vessel Spacing (Beam) Length requirement Available Berths for Max Vessel Port average TEU/container TEU 754,352 Avg. TEU/Vessel 855 Avg. Vessel DWT 48,220 Average Est. Vessel Capacity TEU 3,895 Average Discharge & Load % 22% Average TEU per Max Vessel Max annual calls per berth Sustainable Calls per 80% Total Sustainable Vessel Calls 1, ,288 Annual Berth Capacity TEU 937, , ,546 1,718, Annual TEU 539, ,441 48, ,352 Berth Utilization, Max Vessel Basis 58% 53% 10% 44% Exhibit 110: Port of Jacksonville 2009 Berth Capacity Vessel Call Basis Berth Utilization - Vessel Call Basis Jax Blount Jax Dames Jax Talleyrand Isl. Pt. Port Total Max annual calls per berth Sustainable Calls per 80% Available Berths Total Sustainable Vessel Calls 1, , Estimated Vessel calls 882 Berth Utilization 39% Capacity and Productivity Summary Exhibit 111 summarizes the capacity and productivity analysis for CY space, container cranes, and vessel berths for the Port of Jacksonville. The port currently has estimated sustainable CY capacity of 3 million TEU with current capacity utilization of 24%. Container crane capacity at the port is estimated at 4.5 million TEU with current utilization at 17%. Berth utilization on a vessel call basis is 31% and on a maximum vessel size basis it is 44%. In all cases the low level of utilization at the Dames Point terminal has reduced the average for the port. The terminal has just opened and volume has not grown to a more normal level of utilization due to the economic downturn. Overall the measures of this analysis indicate that the Port of Jacksonville has sufficient capacity to handle future growth at its existing terminals. Page 88

97 Exhibit 111: Port of Jacksonville Near Term Capacity and Productivity Summary Terminal Space Jax Blount Isl. Jax Talleyrand Jax Dames Pt. Charleston 2009 TEU 539, ,441 48, ,352 Gross Acres ,085 CY Acres CY/Gross Ratio 24% 29% 84% 33% Sustainable CY TEU 80% 1,382, ,200 1,248,800 3,090,080 Annual TEU/Gross Acre Annual TEU/CY Acre 3,032 3, ,090 Est. CY TEU Slots 24,680 8,200 22,300 55,180 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 39% 36% 4% 24% Container Cranes Jax Blount Isl. Jax Talleyrand Jax Dames Pt. Charleston Cranes Cranes per Berth Annual Crane Capacity - TEU 1,512,000 1,512,000 1,512,000 4,536,000 Avg. Moves/Available Crane-Hour Annual TEU/Crane 89,939 27,407 8,045 41,908 Annual Moves/Crane 49,966 15,226 4,469 23,282 Annual Vessel Calls/Crane (2009) Crane Utilization 36% 11% 3% 17% Berths and Vessels Jax Blount Isl. Jax Talleyrand Jax Dames Pt. Charleston Berths Berth Feet 5,250 2,200 2,400 9,850 Annual Vessel Calls per Berth (2007) 80 Berth Utilization - Vessel Call Basis 39% Annual TEU per Berth 89,939 54,814 24,135 68,577 Annual TEU/Foot of Berth Average Vessel Capacity - TEU ,895 Est. Max. Vessel Capacity - TEU 3,420 2,845 3,420 3,420 Avg. vs. Max. Vessel Capacity 0% 0% 0% 114% Average TEU per Vessel (2007) 855 Avg. Vessel Utilization - % Discharge/Load 22% Berth Capacity - Avg. Vessel Basis 1,956,868 Berth Utilization - Avg. Vessel Basis 39% Avg. Discharge/Load per Max. Vessel 751 Berth Capacity - Max. Vessel Basis 1,718,002 Berth Utilization - Max. Vessel Basis 44% Port Everglades Capacity Estimates Overview Port Everglades has two port areas that handle container cargoes. The primary container terminal is at Southport with 238 acres of space leased to private terminal operators. The Midport area has 77 acres with two areas leased to terminal operators. Port Everglades terminals are a short distance to the Atlantic Ocean. The Midport terminals are between one and two miles to the ocean and the Southport berths are less than three miles. Southport is a dedicated container terminal with 6 berths and total berth length of 4500 feet. Southport provides 7 Post-Panamax gantry cranes and has Ro-Ro capability. The Midport terminals have 5 berths and total berth Page 89

98 length of 2845 feet. The Midport basin berths have one gantry crane and one mobile harbor crane and also have Ro-Ro capability. For purposes of this analysis the Southport and Midport areas have been combined. Exhibit 112 provides an aerial view of the Midport and Southport terminals. Exhibit 112: Port Everglades Container Terminals Source: Google Earth Image Date December 31, 2008 Southport terminal area handles about two thirds of the Port s container volume. It has three major terminal operators that lease property from the Port. Florida International Terminals (FIT) operates a public terminal that handles several liner companies. FIT was formed in 2004 from the combination of two large Latin American terminal operating companies associated with Chilean ocean carriers CSAV and CCNI. FIT was organized to manage the Port Everglades marine terminal. Crowley Liner Services operates a terminal for its Port Everglades Ro-Ro operation. The third terminal operator is Port Everglades Terminal LLC which operates the Mediterranean Shipping terminal at Southport. Exhibit 113 provides a profile of the Port Everglades container terminals with an aerial photo of the Southport operating area. As a part of the Port s five year expansion plan additional CY space of 41 acres is being developed in the Southwest corner of the terminal. In addition the plan includes provisions for development of an on dock rail terminal which would be served by the FEC railway. These development areas are also shown in the Exhibit. Page 90

99 Exhibit 113: Port Everglades Container Terminal Profile Profle date: Sept. 30, TEU: 985,095 Port: Port Everglades Total Acres: 315 Terminal: Southport & Midport CY Acres: 245 Terminal Type: Container,roro, breakbulk On-Dock Rail Acres: 0 Address: 1850 Eller Dr. Other Non-CY Acres: Fort Lauderdale, FL Net Terminal Acres: Operator (Stevedore): Various (see Notes) Berths: 11 Contact Name: Total Berth Length: 7,345 Telephone Number: (operations mgr.) Channel Depth (MLLW): Fax Number: Berth Depth (MLLW): 42 Address: Panamax Container Cranes: 1 Port Website: Post-Panamax Container Cranes: 7 Terminal Website: Inbound Gates: Outbound Gates: Reversible Gates: Total Gates: CY Rail-Mounted Gantries: CY Rubber-Tired Gantries: CY Side or Top Loaders: CY Straddle Carriers: 0 CY Reach Stackers: On-Line Access System: Total CY Lift Machines 0 Appointment System: On-site M&R (yes/no): Reefer Plugs/Slots: On-dock Rail (yes/no): No Terminal Hours: Gate Hours: CONTAINER TERMINAL PROFILE Notes: The port is divided into three operating areas, Southport, Midport and Northport. Southport and Midport areas have container handling capability. The Southport area is the primary container terminal with Florida International terminals serving 7 major container carriers. In addition Crowley and Mediterranean Shipping (MSC) are located at Southport. The Midport area handles numerous Caribbean Carriers plus Chiquita and Dole. Southport Area 238 acres; Midport Area 77 acres. Southport has 6 Berths container & roro total 4500 feet, Midport has 5 berths container, cargo, cruise and roro total 2845 ft. Southport 7 post Panamax cranes, Midport 1 gantry cranes and 1 mobile harbor crane. FEC Fort Lauderdale terminal within 2 miles of the port. Page 91

100 Midport terminal handles smaller lines that serve the Caribbean and South American markets. In addition, Chiquita and Dole vessels serve the port over the Midport terminal bringing fresh fruit and vegetables utilizing Berth 29. Exhibit 114 provides an aerial of the Midport area. The aerial from December 31, 2008 shows the Midport Basin CY at the start of a construction project to demolish a building and expand the CY area. The Midport terminal berths are also used by cruise ships that call on Port Everglades. The berth and cruise terminal adjacent to the Basin CY have been expanded to handle 1225 foot Genesis-class cruise ships. Exhibit 114: Midport Terminal Area Container Yard Storage Capacity Exhibit 115 summarizes land use at Port Everglades. The total area for the port s container operations is 315 acres, with 267 acres of CY storage and a CY/Gross ratio of 85%. Exhibit 115: Port Everglades Land Use Port Land Use South & Mid Port Port Total Gross Acres CY Acres Rail Acres - - Other Non-CY Acres Net Berth/Gate/Yard Acres - - CY/Gross Ratio 85% 85% Page 92

101 Exhibit 116 applies standard CY storage factors to the port acreage. The port has a mix of grounded and stacked CY operations. The CY area has been estimated to be 267 acres producing 41,400 TEU storage slots. Annual CY sustainable TEU capacity is estimated to 2.3 million TEU. This produces annual utilization of 42% relative to 2008 volume. This analysis indicates that the port has adequate CY capacity for future growth. Not included in the analysis is a 41 acre area of Southport that is currently being expanded for future port use and which will add CY capacity. Crane Capacity Exhibit 116: Port Everglades Near Term CY Capacity Container Yard Capacity South & Mid Port Port Total Wheeled Chassis Slots 8,000 8,000 Grounded Straddle Carrier Slots - - Grounded Stacked Slots 33,400 33,400 Grounded RTG Slots - - Grounded RMG Slots - - TEU Storage Slots 41,400 41,400 Avg TEU Slots/CY Acre Maximum Annual Slot Turnover Maximum Annual CY TEU Capacity 2,898,000 2,898,000 Sustainable CY TEU 80% 2,318,400 2,318, Annual TEU 985, , TEU per CY Slot CY Capacity Utilization 42% 42% Exhibit 117 provides a summary of Port Everglades cranes and an estimate of crane capacity. The port provides 8 cranes for use by its tenants. Estimated annual crane capacity at the port is 2.0 million TEU with 2008 utilization at 49%. The utilization estimate may be somewhat overstated because the port has a sizeable Ro-Ro operation which is in the TEU count but does not utilize container cranes for loading and unloading. Exhibit 117: Port Everglades Near Term Crane Capacity Crane Capacity South & Mid Port Port Total Cranes 8 8 Available Crane Hours per Day Current Annual Operating Days Current Annual Hours/Crane 4,000 4,000 Annual Available Crane Hours 32,000 32,000 Sustainable 80% 25,600 25,600 Avg. TEU/Available Crane-hour Avg. Annual TEU/Crane 123, ,137 Crane Capacity, Moves/hour Sustainable 80% Port average TEU/container Crane Capacity TEU/hour Annual Crane Capacity 2,016,000 2,016,000 Current Annual TEU 985, ,095 Current Crane Utilization 49% 49% Page 93

102 Berth Capacity Port Everglades berth capacity in TEU for the maximum vessel size is summarized in Exhibit 118. The analysis estimates near-term berth capacity at 2.4 million TEU and berth utilization at 42%. Exhibit 118: Port Everglades Near Term Berth Capacity Maximum Vessel Basis Berth Capacity - Max Vessel Basis South & Mid Port Port Total Berths 8 8 Berth length 6,125 6,125 Berth Depth - Feet Max Sailing Draft Corresponding Design 95% Corresponding DWT 50,280 50,280 Nominal Max Vessel TEU 4,067 4,067 Corresponding Vessel Length - Feet Vessel Spacing (Beam) Length requirement 1,005 1,005 Available Berths for Max Vessel Port average TEU/container TEU 948, ,687 Avg. TEU/Vessel 1,284 1,284 Avg. Vessel DWT 34,645 34,645 Average Est. Vessel Capacity TEU 2,764 2,764 Average Discharge & Load % 46% 46% Average TEU per Max Vessel 1,889 1,889 Max annual calls per berth Sustainable Calls per 80% Total Sustainable Vessel Calls 1,248 1,248 Annual Berth Capacity TEU 2,356,934 2,356, Annual TEU 985, ,095 Berth Utilization, Max Vessel Basis 42% 42% Berth capacity on a vessel call basis is summarized in Exhibit 119. This approach generates a berth capacity estimate of 2080 calls and 2007 berth utilization of 68%. Exhibit 119: Port Everglades 2007 Berth Capacity Vessel Call Basis Berth Utilization - Vessel Call Basis South & Mid Port Port Total Max annual calls per berth Sustainable Calls per 80% Available Berths 8 8 Total Sustainable Vessel Calls 1,664 1, Vessel calls Berth Utilization 44% 44% Capacity and Productivity Summary Exhibit 120 summarizes the capacity and productivity analysis for CY space, container cranes, and vessel berths for Port Everglades. This analysis estimates CY utilization at 42%, crane utilization at 49%, and berth utilization at 36% on a vessel call basis and 42% on a maximum vessel basis. These estimate indicate that the port has adequate capacity to handle future growth. Page 94

103 Exhibit 120: Port Everglades Near Term Capacity and Productivity Summary Terminal Space South & Mid Port Port Everglades 2008 TEU 985, ,095 Gross Acres CY Acres CY/Gross Ratio 85% 85% Annual Sustainable CY TEU 80% 2,318,400 2,318,400 Annual TEU/Gross Acre 3,127 3,127 Annual TEU/CY Acre 3,689 3,689 Est. CY TEU Slots 41,400 41,400 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 42% 42% Container Cranes South & Mid Port Port Everglades Cranes 8 8 Cranes per Berth Annual Crane Capacity - TEU 2,016,000 2,016,000 Avg. Moves/Available Crane-Hour Annual TEU/Crane 123, ,137 Annual Moves/Crane 68,409 68,409 Annual Vessel Calls/Crane (2007) Crane Utilization 49% 49% Berths and Vessels South & Mid Port Port Everglades Berths 8 8 Berth Feet 6,125 6,125 Annual Vessel Calls per Berth (2007) Berth Utilization - Vessel Call Basis 44% 44% Annual TEU per Berth 123, ,137 Annual TEU/Foot of Berth Average Vessel Capacity - TEU 2,764 2,764 Est. Max. Vessel Capacity - TEU 4,067 4,067 Avg. vs. Max. Vessel Capacity 68% 68% Average TEU per Vessel (2007) 1,284 1,284 Avg. Vessel Utilization - % Discharge/Load 46% 46% Berth Capacity - Avg. Vessel Basis 1,602,112 1,602,112 Berth Utilization - Avg. Vessel Basis 61% 61% Avg. Discharge/Load per Max. Vessel 1,889 1,889 Berth Capacity - Max. Vessel Basis 2,356,934 2,356,934 Berth Utilization - Max. Vessel Basis 42% 42% Port of Miami Capacity Estimates Overview The Port of Miami owns and manages three container terminals on Dodge Island in Biscayne Bay 2 to 3 miles from the Atlantic Ocean. These container terminals are leased to three terminal operators, South Florida Container Terminal (SFCT), Port of Miami Terminal Operating Company (POMTOC), and Seaboard Marine. SFCT and POMTOC use the Port s container cranes for lift-on/lift-off operations. Seaboard Marine is a primarily a Ro-Ro terminal but also has access to the Port s container cranes. Exhibit 121 provides an aerial view of Dodge Island Page 95

104 and its container terminals. The Port provides 5 container berths with a total berth length of 5000 feet. The port owns 9 container cranes: 7 cranes are Panamax and 2 are Post-Panamax. The cranes are maintained by the Port of Miami Crane Management Company (PMCM) and are operated by the terminal operating companies. In addition to the container terminals the Dodge Island port complex provides five cruise terminals which handled over 4 million passengers in Exhibit 121: Port of Miami Container Terminals Source: Google Earth Image Date November 17, 2007 Access to the Port of Miami is via Port Boulevard which runs through the city of Miami. A major project is being advanced by the Port to develop a tunnel which will route port traffic around the city to US 41 and I-395 as shown in Exhibit 122 below. Construction on this $607 million project is set to begin in mid 2010 with tunnel opening projected for Exhibit 122: Miami Tunnel Project SFCT is a joint venture terminal operator between Terminal Link (CMA-CGM) and APM Terminals operating the former APM Terminals facility. It was formed when ocean carrier CMA-CGM left POMTOC and took space in the former APM terminal. The terminal has 74 acres and utilizes the Port of Miami s berth space and container cranes. Exhibit 123 provides a profile of this terminal. Page 96

105 Exhibit 123: South Florida Container Terminal Profile Profle date: Sept. 30, TEU: (Miami FY Estimate) 271,182 Port: Miami Total Acres: 74 Terminal: South Florida Cont. Term. CY Acres: _ Terminal Type: Container On-Dock Rail Acres: 0 Address: 2299 Port Blvd. Other Non-CY Acres: 0 Miami, FL Net Terminal Acres: 74 Operator (Stevedore): Eller-ITO Berths: 7 Contact Name: Mark Baker Total Berth Length: 5,000 Telephone Number: Channel Depth (MLLW): 42' Fax Number: Berth Depth (MLLW): 42' Address: miaapmtptm@apmterminals.companamax Container Cranes: 7 Port Website: Post-Panamax Container Cranes: 2 Terminal Website: CY Rail-Mounted Gantries: 0 Inbound Gates: 10 lanes, all reversible CY Rubber-Tired Gantries: 0 Outbound Gates: CY Side or Top Loaders: 22 Reversible Gates: CY Straddle Carriers: 0 Total Gates: 10 CY Reach Stackers: 0 On-Line Access System: yes Total CY Lift Machines 22 Appointment System: yes On-site M&R (yes/no): yes Reefer Plugs/Slots: 538 On-dock Rail (yes/no): No Terminal Hours: Gate Hours: CONTAINER TERMINAL PROFILE available to work container vessels 24 hours Mon-Fri (closed for lunch from ) Notes: South Florida Continer Terminal was formed when CMA-CGM left the POMTOC terminal and took up space in cooperation with APM. SFCT terminal is adjacent to the Port of Miami Container Terminal Operating Company (POMTOC) terminal. Both terminals share use of the berths and container cranes. (Diagram) POMTOC is a non-carrier owned terminal operating company which serves over 30 ocean carriers. The terminal occupies 120 acres and utilizes the Port s berths and cranes as does SFCT. Exhibit 124 provides a profile of the POMTOC terminal. Page 97

106 Exhibit 124: Port of Miami Terminal Operating Company Terminal (POMTOC) Profle date: Sept. 30, TEU: (Miami FY Estimate) 207,271 Port: Miami Total Acres: 120 Terminal: POMTOC CY Acres: same Terminal Type: Container On-Dock Rail Acres: 0 Address: 1007 North America Way, # 400 Other Non-CY Acres: 0 Miami, FL Net Terminal Acres: 120 Operator (Stevedore): Eller-ITO & Florida Steve. Berths: 7 Contact Name: John Ballestero Total Berth Length: 5,000 Telephone Number: Channel Depth (MLLW): 42' Fax Number: Berth Depth (MLLW): 42' Address: jballestero@pomtoc.com Panamax Container Cranes: 7 Port Website: Post-Panamax Container Cranes: 2 Terminal Website: CY Rail-Mounted Gantries: 0 Inbound Gates: 10 CY Rubber-Tired Gantries: 0 Outbound Gates: 6 CY Side or Top Loaders: 18 Reversible Gates: 4 CY Straddle Carriers: 0 Total Gates: 16 CY Reach Stackers: 0 On-Line Access System: yes Total CY Lift Machines 18 Appointment System: yes On-site M&R (yes/no): yes Reefer Plugs/Slots: 250 On-dock Rail (yes/no): No Terminal Hours: Gate Hours: CONTAINER TERMINAL PROFILE available to work container vessels 24 hours , closed for lunch from Notes: POMTOC operates a public container terminal serving 30 ocean carriers at the port of Miami. The terminal has its own gate complex. The POMTOC terminal is adjacent to the South Florida Container Terminal and Seaboard Marine. All three terminals share the berth space and gantry cranes. Seaboard Marine terminal is a private terminal operated by Seaboard Marine for its Caribbean trades and South American trades. The terminal has a total of 84 acres and has 10 berths with total berth length of 6500 feet. The terminal utilizes mobile harbor cranes and Ro-Ro for loading Page 98

107 and unloading containers. The terminal also has access to the Port s container berths and gantry cranes. Exhibit 125 provides a profile of the Seaboard Marine terminal. Exhibit 125: Seaboard Marine Terminal Profle date: Sept. 30, TEU: (Miami FY Estimate) 349,907 Port: Miami Total Acres: 84 Terminal: Seaboard Marine Terminal CY Acres: 84 Terminal Type: container & ro-ro On-Dock Rail Acres: 0 Address: 1630 Port Blvd. Other Non-CY Acres: Miami, FL Net Terminal Acres: 80 Operator (Stevedore): Seaboard Marine Berths: 10 Contact Name: Carlos Arocha Total Berth Length: 6500' Telephone Number: Channel Depth (MLLW): 42'/29' Fax Number: Berth Depth (MLLW): 42'/29' Address: carlos_arocha@seaboardmarin Panamax Container Cranes: 7 Port Website: Post-Panamax Container Cranes: 2 Terminal Website: CY Rail-Mounted Gantries: 0 Inbound Gates: 2 Mobile Harbor Cranes 3 Outbound Gates: 6 CY Side or Top Loaders: 25 Reversible Gates: 0 CY Straddle Carriers: 0 Total Gates: 8 CY Reach Stackers: 0 On-Line Access System: yes Total CY Lift Machines 28 Appointment System: yes On-site M&R (yes/no): yes Reefer Plugs/Slots: 112 On-dock Rail (yes/no): No Terminal Hours: Gate Hours: CONTAINER TERMINAL PROFILE loads accepted 24 hours, vessels can be worked 24 hours 24 hours Notes: Seaboard Marine operates its own terminal at the Port of Miami utilizing Ro-Ro and mobile harbor cranes for loading and unloading containers. Seaboard Marine also has access to the Port's container berths and gantry cranes. Container Yard Storage Capacity Exhibit 126 summarizes the land use at the Port of Miami. The combined area of the three container terminals is 278 acres. Since these are leased terminals, 100% of the terminal areas are assumed to be utilized for container operations. Most of the remaining land on the port appears to be utilized for cruise ship operations. Since the port is on an island, the only way to expand Page 99

108 container area is to convert other port land to container operation. For the Port as a whole, there are an estimated 189 acres of CY space for a CY/Gross ratio of 68%. Exhibit 126: Port of Miami Land Use Port Land Use SFCT Seaboard POMTOC Port Total Gross Acres CY Acres Rail Acres Other Non-CY Acres Net Berth/Gate/Yard Acres CY/Gross Ratio 76% 60% 69% 68% Exhibit 127 applies standard CY storage factors to the port acreage. Based on review of aerial photos the CY area is a mixture of wheeled and grounded use. It was estimated that the combined CY area was 189 acres producing 30,080 storage slots. Annual CY sustainable TEU capacity is estimated at 1.7 million TEU producing capacity utilization of 70% relative to 2008 volume. However it should be noted that the Seaboard operation is primarily Ro-Ro which may not have the same dwell time or utilization characteristics as the SFTC or POMTOC terminals. Exhibit 127: Port of Miami CY Storage Capacity Container Yard Capacity SFCT Seaboard POMTOC Port Total Wheeled Chassis Slots 800 2, ,200 Grounded Straddle Carrier Slots 4,000-7,680 11,680 Grounded Stacked Slots 4,200 5,000 6,000 15,200 Grounded RTG Slots Grounded RMG Slots TEU Storage Slots 9,000 7,000 14,080 30,080 Avg TEU Slots/CY Acre Maximum Annual Slot Turnover Maximum Annual CY TEU Capacity 630, , ,600 2,105,600 Sustainable CY TEU 80% 504, , ,480 1,684, Annual TEU 388, , ,809 1,186, TEU per CY Slot CY Capacity Utilization 77% 128% 38% 70% Crane Capacity Exhibit 128 provides a summary of the crane operation and capacity for the combined SFCT and POMTOC terminals. These two terminals share the 9 cranes and berth space adjacent to their terminals. Crane capacity for this container operation is estimated to be 2.2 million TEU with 2008 utilization at 31%. Based on this analysis it appears that there is adequate crane capacity to handle future growth. Although the Seaboard marine operation can utilize the ports container berths and cranes it was assumed that only the SFCT and POMTOC operations used these facilities. The Seaboard facility handles self unloading vessels and R0-Ro vessels. It also has three mobile harbor cranes to support its operations. Crane capacity calculations are not applicable to this type operation. Page 100

109 Exhibit 128: Port of Miami Near Term Crane Capacity Crane Capacity SFCT Seaboard POMTOC SFCT & POMTOC Cranes Not Applicable Not Applicable Not Applicable 9 Available Crane Hours per Day 16 Current Annual Operating Days 250 Current Annual Hours/Crane 4,000 Annual Available Crane Hours 36,000 Sustainable 80% 28,800 Avg. TEU/Available Crane-hour 41.2 Avg. Annual TEU/Crane 76,127 Crane Capacity, Moves/hour 35 Sustainable 80% 28 Port average TEU/container 1.75 Crane Capacity TEU/hour 61 Annual Crane Capacity 2,205,877 Current Annual TEU (SFCT & POMTOC) 685,139 Current Crane Utilization 31% Berth Capacity Port of Miami berth capacity estimated for the maximum vessel size is summarized in Exhibit 129. Berth capacity was estimated separately for the combined SFCT and POMTOC and the Seaboard terminal. The annual berth capacity for the SFTC and POMTOC berth space was estimated at 1.0 million TEU with utilization of 84%. The Seaboard facility had annual berth capacity estimate of 2.3 million TEU with utilization of 21%. The maximum vessel analysis may not be applicable to the Seaboard facility as it currently handles much smaller vessels because of the markets that Seaboard serves. Exhibit 129: Port of Miami Near Term Berth Capacity Maximum Vessel Basis Berth Capacity - Max Vessel Basis SFCT Seaboard POMTOC SFCT & POMTOC Berths Not Applicable 10 Not Applicable 7 Berth length 6,500 5,000 Berth Depth - Feet Max Sailing Draft Corresponding Design 95% Corresponding DWT 50,280 50,280 Nominal Max Vessel TEU 4,067 4,067 Corresponding Vessel Length - Feet Vessel Spacing (Beam) Length requirement 1,005 1,005 Available Berths for Max Vessel Port average TEU/container TEU 501, ,139 Avg. TEU/Vessel Avg. Vessel DWT 20,667 46,320 Average Est. Vessel Capacity TEU 1,600 3,737 Average Discharge & Load % 37% 25% Average TEU per Max Vessel 1,498 1,009 Max Calls per Berth 5/wk Sustainable Calls at 80% Total Sustainable Vessel Calls 1,248 1,040 Annual Berth Capacity TEU 1,869,892 1,049, Annual TEU 501, ,139 Berth Utilization, Max Vessel Basis 27% 65% Page 101

110 Berth capacity based on vessel calls is summarized in Exhibit 130. Using this approach the SFTC & POMTOC terminals have capacity for 1,456 calls with 2007 utilization of 51%. Similarly the Seaboard terminal has capacity for 2080 vessel calls at its 10 berths and 2007 berth utilization of 41%. Exhibit 130: Port of Miami 2007 Berth Capacity Vessel Call Basis Berth Utilization - Vessel Call Basis SFCT Seaboard POMTOC SFCT & POMTOC Max Calls per Berth 5/wk Not Applicable 260 Not Applicable 260 Sustainable Calls at 80% Available Berths 10 7 Total Sustainable Vessel Calls 2,080 1, Vessel calls Berth Utilization 41% 51% Capacity and Productivity Summary Exhibit 131 summarizes the capacity and productivity analysis for CY space, container cranes, and vessel berths for the Port of Miami. The port currently has estimated CY capacity of 1.6 million TEU with utilization of 70%. As noted earlier the analysis may not be appropriate for the Seaboard operation. Crane capacity for the SFCT and POMTOC terminals is 2.2 million TEU with utilization at 54%. Berth utilization for the SFCT and POMTOC terminals is 57% on a vessel call basis and 84% on a maximum vessel call basis. Berth utilization at the Seaboard terminal is 41% on a vessel call basis and 27% on a maximum vessel call basis. This analysis indicates that the port has adequate terminal capacity to handle future growth. Page 102

111 Exhibit 131: Port of Miami Near Term Capacity and Productivity Summary Terminal Space SFCT Seaboard POMTOC Miami 2008 TEU 388, , ,809 1,186,190 Gross Acres CY Acres CY/Gross Ratio 76% 60% 69% 68% Sustainable CY TEU 80% 504, , ,480 1,684,480 Annual TEU/Gross Acre 5,248 5,965 2,473 4,267 Annual TEU/CY Acre 6,934 10,021 3,576 6,276 Est. CY TEU Slots 9,000 7,000 14,080 30,080 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 77% 128% 38% 70% Container Cranes SFCT Seaboard POMTOC SFCT & POMTOC Cranes Not Applicable Not Applicable Not Applicable 9 Cranes per Berth 1.3 Annual Crane Capacity - TEU 2,205,877 Avg. Moves/Available Crane-Hour 41.2 Annual TEU/Crane 131,799 Annual Moves/Crane 75,284 Annual Vessel Calls/Crane (2007) 82 Crane Utilization 54% Berths and Vessels SFCT Seaboard POMTOC SFCT & POMTOC Berths Not Applicable 10 Not Applicable 7 Berth Feet 6,500 5,000 Annual Vessel Calls per Berth (2007) Berth Utilization - Vessel Call Basis 41% 51% Annual TEU per Berth 50,106 97,877 Annual TEU/Foot of Berth Average Vessel Capacity - TEU 1,600 3,737 Est. Max. Vessel Capacity - TEU 4,067 4,067 Avg. vs. Max. Vessel Capacity 39% 92% Average TEU per Vessel (2007) Avg. Vessel Utilization - % Discharge/Load 37% 25% Berth Capacity - Avg. Vessel Basis 735, ,201 Berth Utilization - Avg. Vessel Basis 68% 123% Avg. Discharge/Load per Max. Vessel 1,498 1,009 Berth Capacity - Max. Vessel Basis 1,869,892 1,049,308 Berth Utilization - Max. Vessel Basis 27% 65% Page 103

112 V. Gulf Ports Gulf Coast Summary Exhibit 132 summarizes capacity and utilization estimates for the three major Gulf Coast container ports. Houston dominates the region with 80% of the total, and has most of the reserve capacity. New Orleans suffered a setback from Hurricane Katrina as well as having a competitive disadvantage from being located roughly 100 miles upriver from the Gulf of Mexico. Mobile, however, and a new terminal and significant reserve capacity for post-recession growth. Page 104

113 Exhibit 132: Gulf Coast Capacity and Utilization Summary Container Yard Mobile New Orleans Houston Gulf Ports 2008 TEU 121, ,765 1,794,309 2,229,877 Gross Acres CY Acres CY/Gross Ratio 58% 62% 63% 62% Annual CY Capacity - TEU 898, ,600 3,127,040 4,898,880 Reserve CY Capacity - TEU 776, ,835 1,332,731 2,669,003 Annual TEU/Gross Acre 781 2,451 4,141 3,109 Annual TEU/CY Acre 1,338 3,972 6,597 5,045 Est. CY TEU Slots 16,040 12,480 55,840 84,360 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 14% 45% 57% 46% Container Cranes Mobile New Orleans Houston Gulf Ports Cranes Cranes per Berth Annual Crane Capacity - TEU 1,008, ,344 4,788,000 6,653,344 Reserve Crane Capacity - TEU 886, ,578 2,993,691 4,423,466 Annual TEU/Crane 30,451 78,441 94,437 82,588 Annual Moves/Crane 16,917 51,236 52,465 47,017 Crane Utilization 12% 37% 37% 34% Berths and Vessels Mobile New Orleans Houston Gulf Ports Berths Berth Feet 2,900 2,000 8,000 12,900 Annual Vessel Calls (2007) ,149 Annual Vessel Calls per Berth (2007) Berth Utilization - Vessel Call Basis 25% 54% 49% 42% Reserve Berth Capacity - Vessel Calls Annual TEU per Berth 40, , , ,529 Annual TEU/Foot of Berth Average Vessel Capacity - TEU 3,895 3,492 3,895 3,387 Average TEU per Vessel (2007) 781 1,189 2,162 1,941 Avg. Vessel Ute. - % Discharge/Load 20% 34% 56% 57% Berth Capacity - Avg. Vessel Basis 487, ,757 4,047,518 5,029,487 Berth Utilization - Avg. Vessel Basis 25% 63% 44% 44% Reserve Berth Capacity - Avg. Vessel Basis 365, ,991 2,253,209 2,799,609 Reserve Berth Capacity - Max. Vessel Basis 305, ,247 1,759,147 2,554,332 As shown in Exhibit 133, Houston has a relatively shallow draft, which is being remedied by a planned dredging project. Page 105

114 Exhibit 133: Gulf Coast Draft and Vessel Data Berths and Vessels Mobile New Orleans Houston Nominal Maximum Channel/Berth Draft Feet Estimated Maximum Vessel TEU 3,420 5,183 3, Average Vessel TEU 3,895 3,492 3, Average Vessel Discharge/Load 781 1,189 2,162 Port of Mobile Overview The Alabama State Port Authority (ASPA) has two container terminals at the Port of Mobile. The new Mobile Container Terminal (MCT) was completed and opened for business in September The second terminal is ASPA s original container terminal at Pier Two. The Pier Two terminal is a combination container and general cargo terminal. It has been reported that most of the Port s container traffic now moves through MCT. Phase I of the new terminal has 95 developed acres. It has two berths with 2000 feet of berth length serviced by two Post- Panamax cranes. Channel and berth depth at MCT are 45 feet. Final build out will be 135 acres with six cranes. The Pier Two terminal utilizes about 21 acres for container operations. The facility has one 900 foot berth serviced by two PACECO cranes. Water depth at Pier Two is 40 feet. Exhibit 134 and Exhibit 135 provide aerial photos of the MCT and Pier Two terminals. Exhibit 134: Mobile Container Terminal (MCT) Source: Mobile Container Terminal Website Information Sheet Page 106

115 Exhibit 135: Mobile Pier Two - Container and General Cargo Terminal Source: Google Earth Image Date January 31, 2008 Mobile Container Terminal was a $300 million development of the Alabama State Port Authority and Mobile Container Terminal, LLC a terminal company formed to operate the facility. Mobile Container Terminal LLC is a joint venture between APM Terminals, a subsidiary of AP Moeller, and Terminal Link, a subsidiary of CMA CGM. MCT Phase I is advertised to have terminal capacity of 350,000 TEU with future expansion capacity to 800,000 TEU. In addition, a new on-dock intermodal facility is being planned for MCT with projected completion in Exhibit 136 provides a profile of MCT. Exhibit 136: Mobile Container Terminal Profile CONTAINER TERMINAL PROFILE Profle date: Sept. 30, TEU for entire Port 121,803 Port: Mobile, Alabama Total Acres: 135 Terminal: Mobile Container Terminal (MCT) CY Acres: 70 Terminal Type: Address: On-Dock Rail Acres: 901 Ezra Trice Blvd. Other Non-CY Acres: 25 Mobile, AL Net Terminal Acres: 95 Operator (Stevedore): MCT Berths: 2 Contact Name: Total Berth Length: 2,000 Telephone Number: Channel Depth (MLLW): 45 Fax Number: Berth Depth (MLLW): 45 Address: Panamax Container Cranes: Port Website: Post-Panamax Container Cranes: 2 Terminal Website: Inbound Gates: Outbound Gates: Reversible Gates: CY Rail-Mounted Gantries: 9 CY Rubber-Tired Gantries: 5 CY Side or Top Loaders: CY Straddle Carriers: Total Gates: 14 CY Reach Stackers: 5 On-Line Access System: Total CY Lift Machines 5 Appointment System: On-site M&R (yes/no): Yes Reefer Plugs/Slots: 176 On-dock Rail (yes/no): No Terminal Hours: Mon Fri 8:00AM to 5:00PM Gate Hours: Page 107

116 Pier Two terminal is operated by ASPA. This terminal still handles a small amount of container cargo but the volume has been declining with the opening of the new terminal. With the existing capacity and future expansion potential of MCT, it does not appear to be necessary for the ASPA to continue to operate the Pier Two facility for container service. Exhibit 137 provides a profile for the Pier Two terminal. Exhibit 137: Pier Two Terminal Profile Profle date: Sept. 30, TEU: for entire port 121,803 Port: Mobile, AL Total Acres: 21 Terminal: General Cargo & Container Terminal Pier 2 Terminal CY Acres: 21 Terminal Type: Container/General Cargo On-Dock Rail Acres: Yes Address: Operator (Stevedore): CONTAINER TERMINAL PROFILE Main Port Complex Other Non-CY Acres: 550 Pier 2 Port of Mobile - FIRM Code Net Terminal Acres: 21 Private Licensed Stevedores - list available at Berths: 1 Contact Name: John Mickler, Mgr. General Cargo Total Berth Length: 900 Telephone Number: Channel Depth (MLLW): 40 ft Fax Number: Berth Depth (MLLW): 40 Address: jmickler@asdd.com Panamax Container Cranes: 2 Port Website: Post-Panamax Container Cranes: 0 Terminal Website: CY Rail-Mounted Gantries: 0 Inbound Gates: Two CY Rubber-Tired Gantries: 1 Outbound Gates: Two CY Side or Top Loaders: 0 Reversible Gates: CY Straddle Carriers: 0 Total Gates: 4 CY Reach Stackers: 6 On-Line Access System: MainSail Online - Outside Total CY Lift Machines 7 Appointment System: Truckers CHB - Forecast - M&R (yes/no): No Reefer Plugs/Slots: 40 On-dock Rail (yes/no): Yes Terminal Hours: Gate Hours: 8:00 a.m. CT - 4:30 p.m. CT 8:00 a.m. CT - 4:30 p.m. CT Container Yard Storage Capacity Exhibit 138 summarizes land use at the Port of Mobile. The combined acreage of the two terminals is 156 acres with net terminal area of 116 acres. Overall land use ratio is 74%. The Mobile Container Terminal (MCT) still has 40 acres of undeveloped land which will be available for future development. Page 108

117 Exhibit 138: Port of Mobile Land Use Port Land Use Mobile Gen Cargo Mobile MCT Port Total Gross Acres CY Acres Rail Acres Other Non-CY Acres Net Berth/Gate/Yard Acres CY/Gross Ratio 100% 52% 58% Exhibit 139 applies standard CY storage factors to the port acreage. The CY area is a primarily a grounded operation with less than 10% wheeled space. The CY area estimated at 91 acres produces 16,040 TEU storage slots. Sustainable annual CY capacity is estimated to be nearly 900,000 TEU with CY utilization of 14% based on 2009 volume of 121,803. Exhibit 139: Port of Mobile Near Term CY Storage Capacity Container Yard Capacity Mobile Gen Cargo Mobile MCT Port Total Wheeled Chassis Slots 320 1,120 1,440 Grounded Straddle Carrier Slots Grounded Stacked Slots 3,400 11,200 14,600 Grounded RTG Slots Grounded RMG Slots TEU Storage Slots 3,720 12,320 16,040 Avg TEU Slots/CY Acre Maximum Annual Slot Turnover Maximum Annual CY TEU Capacity 260, ,400 1,122,800 Sustainable CY TEU 80% 208, , , Estimated Annual TEU 12, , , TEU per CY Slot CY Capacity Utilization 6% 16% 14% Crane Capacity Exhibit 140 provides a summary of the Port of Mobile s cranes and an estimate of crane capacity. The port has 4 cranes at its two terminals. Annual crane capacity for the port is estimated to be 1.0 million TEU with current crane utilization of 12%. Page 109

118 Exhibit 140: Port of Mobile Near Term Crane Capacity Crane Capacity Mobile Gen Cargo Mobile MCT Port Total Cranes Available Crane Hours per Day Current Annual Operating Days Current Annual Hours/Crane 4,000 4,000 4,000 Annual Available Crane Hours 8,000 8,000 16,000 Sustainable 80% 6,400 6,400 12,800 Avg. TEU/Available Crane-hour Avg. Annual TEU/Crane 60,902 60,902 30,451 Crane Capacity, Moves/hour Sustainable 80% Port average TEU/container Crane Capacity TEU/hour Annual Crane Capacity 504, ,000 1,008,000 Current Annual TEU 12, , ,803 Current Crane Utilization 2% 22% 12% Berth Capacity The Port of Mobile s estimated berth capacity for the maximum vessel size is summarized in Exhibit 141. This analysis produces an estimate of near-term berth capacity of 427,740 TEU and berth utilization of 28%. Page 110

119 Exhibit 141: Port of Mobile Near Term Berth Capacity Maximum Vessel Basis Berth Capacity - Max Vessel Basis Mobile Gen Cargo Mobile MCT Port Total Berths Berth length 900 2,000 2,900 Berth Depth - Feet Max Sailing Draft Corresponding Design 95% Corresponding DWT 42,512 63,678 42,512 Nominal Max Vessel TEU 3,420 5,183 3,420 Corresponding Vessel Length - Feet Vessel Spacing (Beam) Length requirement 905 1, Available Berths for Max Vessel Port average TEU/container Estimated TEU 12, , ,803 Avg. TEU/Vessel 234 1, Avg. Vessel DWT 48,220 Average Est. Vessel Capacity TEU 3,895 Average Discharge & Load % 20% Average TEU per Max Vessel Max Vessel Calls per Berth 5/wk Sustainable Vessel 80% Total Sustainable Vessel Calls Annual Berth Capacity TEU 142, , , Estimated TEU 12, , ,803 Berth Utilization, Max Vessel Basis 9% 38% 28% Berth capacity based on vessel calls is summarized in Exhibit 142. This approach generates a berth capacity estimate 780 vessel calls and estimated 2009 berth utilization of 25%. Exhibit 142: Port of Mobile Berth Capacity Vessel Call Basis Berth Utilization - Vessel Call Basis Mobile Gen Cargo Mobile MCT Port Total 2009 Estimated Vessel calls Max Vessel Calls per Berth 5/wk Sustainable Vessel 80% Available Berths Total Sustainable Vessel Calls Berth Utilization 25% 25% 25% Capacity and Productivity Summary Exhibit 143 summarizes the capacity and productivity analysis for CY space, container cranes, and vessel berths for the Port of Mobile. This analysis estimates CY utilization at 14%, crane utilization at 12% and berth utilization at 25% on a vessel call basis and 28% on a maximum vessel basis. The overall analysis indicates that the Port of Mobile has plenty of capacity to handle future growth. This is to be expected since the new Mobile Container Terminal has only been open since September 2008 and volume have not increased sufficiently to challenge the new terminal s capacity. Page 111

120 Terminal Space Exhibit 143: Port of Mobile Near Term Capacity and Productivity Summary Mobile Gen Cargo Mobile MCT Mobile 2009 Estimated TEU 12, , ,803 Gross Acres CY Acres CY/Gross Ratio 100% 52% 58% Annual CY Capacity - TEU 208, , ,240 Annual TEU/Gross Acre Annual TEU/CY Acre 580 1,566 1,338 Est. CY TEU Slots 3,720 12,320 16,040 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 6% 16% 14% Container Cranes Mobile Gen Cargo Mobile MCT Mobile Cranes Cranes per Berth Annual Crane Capacity - TEU 504, ,000 1,008,000 Avg. Moves/Available Crane-Hour Annual TEU/Crane 6,090 54,811 30,451 Annual Moves/Crane 3,383 30,451 16,917 Annual Vessel Calls/Crane (2007) Crane Utilization 2% 22% 12% Berths and Vessels Mobile Gen Cargo Mobile MCT Mobile Berths Berth Feet 900 2,000 2,900 Annual Vessel Calls per Berth (2009 estimate) Berth Utilization - Vessel Call Basis 25% 25% 25% Annual TEU per Berth 12,180 54,811 40,601 Annual TEU/Foot of Berth Average Vessel Capacity - TEU - - 3,895 Est. Max. Vessel Capacity - TEU 3,420 5,183 3,420 Avg. vs. Max. Vessel Capacity 114% Average TEU per Vessel (2007) 234 1, Avg. Vessel Utilization - % Discharge/Load 20% Berth Capacity - Avg. Vessel Basis 48, , ,212 Berth Utilization - Avg. Vessel Basis 25% Avg. Discharge/Load per Max. Vessel 685 Berth Capacity - Max. Vessel Basis 142, , ,740 Berth Utilization - Max. Vessel Basis 9% 38% 28% New Orleans Capacity Estimates Overview The Port of New Orleans has one container terminal, the Napoleon Avenue Terminal, located on the Mississippi River 99.5 miles from the Gulf of Mexico. Total acreage of the facility is 125 acres which includes a 10-acre on-dock intermodal terminal. The on dock terminal is served by Page 112

121 the New Orleans Public Belt Railroad which connects to all 6 Class One rail carriers serving New Orleans. Canadian National currently offers service to the terminal. The Napoleon Avenue terminal area also includes a number of freight houses and lay down acreage which supports the port s general cargo business. The container terminal provides two berths with a total berth length of 2000 feet. Channel depth and berth is 45 feet. The berths are equipped with four cranes, two Panamax and two Post-Panamax. In addition the port has two additional cranes on order with projected delivery in Exhibit 144 provides an aerial view of the terminal delineating the container areas and on-dock rail facility. Exhibit 144: Port of New Orleans Napoleon Avenue Terminal Source: Google Earth Image Date February 28, 2006 The terminal s CY space is leased to two terminal operators, Ceres Gulf, Inc. and Ports America New Orleans. Ceres Gulf leases 47 acres and Ports America leases 48 acres. Both terminal operators share a common gate, berth space, and crane use. Exhibit 145 provides a profile of the Napoleon Avenue Terminal. Page 113

122 Exhibit 145: Napoleon Avenue Terminal Profile Profle date: Sept. 30, TEU: 313,765 Port: New Orleans Total Acres: 125 Terminal: Napoleon Ave. Container Terminal CY Acres: 79 Terminal Type: Container On-Dock Rail Acres: 10 Address: 1350 Port of New Orleans Pl. Other Non-CY Acres: 16 New Orleans, LA Net Terminal Acres: 105 Operator (Stevedore): Ceres Gulf, Inc.; Ports America Berths: 2 Contact Name: Chris Bonura Total Berth Length: 2,000 Telephone Number: Channel Depth (MLLW): 45 Fax Number: Berth Depth (MLLW): 45 Address: bonurac@portno.com Panamax Container Cranes: 2 Port Website: Post-Panamax Container Cranes: 2 Terminal Website: CY Rail-Mounted Gantries: 0 Inbound Gates: 10 CY Rubber-Tired Gantries: 4 Outbound Gates: 6 CY Side or Top Loaders: 16 Reversible Gates: 16 CY Straddle Carriers: 0 Total Gates: 32 CY Reach Stackers: 3 On-Line Access System: Total CY Lift Machines 23 Appointment System: On-site M&R (yes/no): yes Reefer Plugs/Slots: 192 On-dock Rail (yes/no): Yes Terminal Hours: Gate Hours: CONTAINER TERMINAL PROFILE 24 hours per day, 7 days per week 0700 to 1630 hours weekdays Notes: The Napolean Ave Container Terminal is shared by two operators, Ceres and Ports America. Ceres Gulf Inc. at 50 Napolean Ave, New Orleans, LA 70115, leases 47 acres. Ports America New Orleans at 601 Louisiana Ave, New Orleans, LA leases 48 acres. They both share a common gate, berthing space and gantry cranes. Two additional Panamax cranes are on order with delivery expected in 2010 The on-dock intermodal facility is served by New Orleans Public Belt RR (NOPB) which connects to all 6 class one carriers. CN provides direct intermodal service to the port. In addition BN, UP, CN, NS, CSX and KCS intermodal terminals serve New Orleans and are within drayage distance of the port. Container Yard Storage Capacity Exhibit 146 summarizes land use at the Port of New Orleans. The estimated acreage of the Napoleon Avenue container terminal is 125 acres with net terminal area of 105 acres and a land use ratio of 84%, and a CY/Gross ratio of 62%. The net terminal area and CY estimates are based on information taken from the Port Strategy Advisory Report of June This report, prepared by Parsons Brinckerhoff, provided a feasibility study for expanding the Napoleon Avenue terminal. The land area is based on current use by the Ports two terminal operators. Exhibit 146: Port of New Orleans Land Use Port Land Use Napoleon Port Total Gross Acres CY Acres Rail Acres Other Non-CY Acres Net Berth/Gate/Yard Acres CY/Gross Ratio 62% 62% Page 114

123 Exhibit 147 applies standard CY storage factors to the port acreage. The CY area is estimated to provide sustainable annual capacity of 699,000 TEU. This produces annual utilization of 45% based on 2008 volume of 314,000 TEU (reported loads and estimated empties). Exhibit 147: Port of New Orleans Near Term Storage Capacity Container Yard Capacity Napoleon Port Total Wheeled Chassis Slots 1,600 1,600 Grounded Straddle Carrier Slots 6,880 6,880 Grounded Stacked Slots 1,600 1,600 Grounded RTG Slots 2,400 2,400 Grounded RMG Slots - - TEU Storage Slots 12,480 12,480 Avg TEU Slots/CY Acre Maximum Annual Slot Turnover Maximum Annual CY TEU Capacity 873, ,600 Sustainable CY TEU 80% 698, , Annual TEU 313, , TEU per CY Slot CY Capacity Utilization 45% 45% Crane Capacity Exhibit 148 provides a summary of the Napoleon Avenue crane capacity. The terminal currently provides 4 Panamax cranes. Estimated annual crane capacity is 1.0 million TEU with 2008 capacity utilization of 31%. The port also has two additional Post-Panamax cranes on order with expected delivery in Berth Capacity Exhibit 148: Port of New Orleans Near Term Crane Capacity Crane Capacity Napoleon Port Total Cranes 4 4 Available Crane Hours per Day Current Annual Operating Days Current Annual Hours/Crane 4,000 4,000 Annual Available Crane Hours 16,000 16,000 Sustainable 80% 12,800 12,800 Avg. TEU/Available Crane-hour Avg. Annual TEU/Crane 78,441 78,441 Crane Capacity, Moves/hour Sustainable 80% Port average TEU/container Crane Capacity TEU/hour Annual Crane Capacity 857, ,344 Current Annual TEU 313, ,765 Current Crane Utilization 37% 37% The Napoleon Avenue berth capacity in TEU for the maximum vessel size is summarized in Exhibit 149. This estimate generates near-term berth capacity of 803,012 TEU and berth utilization of 39% for the terminals two container berths. Page 115

124 Exhibit 149: Port of New Orleans Near Term Berth Capacity Maximum Vessel Basis Berth Capacity - Max Vessel Basis Napoleon Port Total Berths 2 2 Berth length 2,000 2,000 Berth Depth - Feet Max Sailing Draft Corresponding Design 95% Corresponding DWT 63,678 63,678 Nominal Max Vessel TEU 5,183 5,183 Corresponding Vessel Length - Feet 1,000 1,000 Vessel Spacing (Beam) Length requirement 1,140 1,140 Available Berths for Max Vessel Port average TEU/container TEU 334, ,199 Avg. TEU/Vessel 1,189 1,189 Avg. Vessel DWT 43,379 43,379 Average Est. Vessel Capacity TEU 3,492 3,492 Average Discharge & Load % 37% 37% Average TEU per Max Vessel 1,930 1,930 Max annual calls per berth 5/wk Sustainable calls at 80% Total Sustainable Vessel Calls Annual Berth Capacity TEU - Max Vessel Basis 803, , Annual TEU 313, ,765 Berth Utilization, Max Vessel Basis 39% 39% Berth capacity based on vessel calls is summarized in Exhibit 150. This approach generates a berth capacity estimate of 416 vessel calls and 2007 berth utilization of 68%. Exhibit 150: Port of New Orleans 2007 Berth Capacity Vessel Call Basis Berth Utilization - Vessel Call Basis Napoleon Port Total Max annual calls per berth 5/wk Sustainable calls at 80% Available Berths 2 2 Total Sustainable Vessel Calls Vessel calls Berth Utilization 68% 68% Capacity and Productivity Summary Exhibit 151 summarizes the capacity and productivity analysis for CY space, container cranes, and vessel berths for the Napoleon Avenue terminal. This analysis estimates current CY utilization of 45%, crane utilization at 31% and berth utilization at 68% on a vessel call basis and 39% on a maximum vessel basis. These estimates indicate that the port has adequate capacity to handle future growth. Page 116

125 Exhibit 151: Port of New Orleans Near Term Capacity and Productivity Summary Terminal Space Napoleon New Orleans 2008 TEU 313, ,765 Gross Acres CY Acres CY/Gross Ratio 62% 62% Annual CY Capacity - TEU 873, ,600 Annual TEU/Gross Acre 2,451 2,451 Annual TEU/CY Acre 3,972 3,972 Est. CY TEU Slots 12,480 12,480 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 45% 45% Container Cranes Napoleon New Orleans Cranes 4 4 Cranes per Berth Annual Crane Capacity - TEU 857, ,344 Avg. Moves/Available Crane-Hour Annual TEU/Crane 78,441 78,441 Annual Moves/Crane 51,236 51,236 Annual Vessel Calls/Crane (2007) Crane Utilization 37% 37% Berths and Vessels Napoleon New Orleans Berths 2 2 Berth Feet 2,000 2,000 Annual Vessel Calls per Berth (2007) Berth Utilization - Vessel Call Basis 54% 54% Annual TEU per Berth 156, ,883 Annual TEU/Foot of Berth Average Vessel Capacity - TEU 3,492 3,492 Est. Max. Vessel Capacity - TEU 5,183 5,183 Avg. vs. Max. Vessel Capacity 67% 67% Average TEU per Vessel (2007) 1,189 1,189 Avg. Vessel Utilization - % Discharge/Load 34% 34% Berth Capacity - Avg. Vessel Basis 494, ,757 Berth Utilization - Avg. Vessel Basis 63% 63% Avg. Discharge/Load per Max. Vessel 1,765 1,765 Berth Capacity - Max. Vessel Basis 803, ,012 Berth Utilization - Max. Vessel Basis 39% 39% Port of Houston Overview The Port of Houston has two container terminals owned by the Port of Houston Authority (PHA). Aerial photos of the Barbours Cut Container Terminal and the Bayport Container Terminal are shown in Exhibit 60. It should be noted that the latest expansion of the Bayport terminal was completed after the aerial photos were taken. Page 117

126 Exhibit 152: Port of Houston Terminals Source: Google Earth Image Date January 9, 2008 Barbours Cut is the port s largest terminal with a total of 303 acres and 165 acres of CY space. The terminal has a 42 acre on-dock rail terminal. Barbours Cut has six berths with a total of 6000 feet of berth length. The port operates a total of 18 cranes at the terminal, five of which are Post-Panamax. Exhibit 153 provides a profile of the terminal. Bayport is a new terminal which opened in January The present development of 130 acres is Phase IA of a 15 to 20 year phased development. The terminal has 107 acres of CY and two berths with 2000 feet of berth length. The berths are served by six Post-Panamax cranes. When fully built out the terminal will have seven berths, 378 acres of CY and a 123 acre intermodal terminal. Exhibit 154 provides a profile of the terminal. Bayport will also have a cruise terminal with three cruise ship berths. Page 118

127 Exhibit 153: Barbours Cut Terminal Profle date: 10/5/ TEU: 750,145 Port: Houston Total Acres: (Not incl Empty Yards, etc.) 303 Terminal: Barbours Cut CY Acres: 165 Terminal Type: Container On-Dock Rail Acres: 42 Address: 1515 E. Barbours Cut Blvd. Other Non-CY Acres: 4 La Porte, TX Net Terminal Acres (BGY): 257 Operator (Stevedore): Port of Houston Berths: 6 Contact Name: Total Berth Length: 6,000 Telephone Number: Channel Depth (MLLW): 40 Fax Number: Berth Depth (MLLW): 40 Address: Panamax Container Cranes: 8 Port Website: Post-Panamax Container Cranes: 5 Terminal Website: CY Rail-Mounted Gantries: 0 Inbound Gates: 29 CY Rubber-Tired Gantries: 52 Outbound Gates: 20 CY Side or Top Loaders: 12 Reversible Gates: 0 CY Straddle Carriers: 0 Total Gates: 49 CY Reach Stackers: 0 On-Line Access System: Navis Express/WebAccess Total CY Lift Machines 64 Appointment System: N/A On-site M&R (yes/no): Yes Reefer Plugs/Slots: 392 On-dock Rail (yes/no): Yes Terminal Hours: Gate Hours: Barbours Cut Container Terminal Profile Monday through Friday: 7 am 5 pm Monday through Friday: 7 am 5 pm Notes: Four entry points with a total of 26 truck lanes. 13 wharf cranes. On dock rail intermodal terminal served by BNSF and Union Pacific. Four 40-ton (40.64 m.t.) Morris Cranes, eight 40-ton Bardella cranes, six 40 ton-noell cranes, 22 new 50-ton K Page 119

128 Exhibit 154: Bayport Terminal BAYPORT CONTAINER TERMINAL PROFILE Profle date: Sept. 30, TEU: 470,547 Port: Houston Total Acres: 130 Terminal: Bayport Container Terminal CY Acres: 107 Terminal Type: On-Dock Rail Acres: 0 Address: Port Rd. Other Non-CY Acres: 23 Seabrook, Tx Net Terminal Acres (BGY) 107 Operator (Stevedore): Berths: 2 Contact Name: Total Berth Length: 2,000 Telephone Number: Channel Depth (MLLW): 40 Fax Number: Berth Depth (MLLW): 40 Address: Panamax Container Cranes: 0 Port Website: Post-Panamax Container Cranes: 6 Terminal Website: CY Rail-Mounted Gantries: 0 Inbound Gates: 18 CY Rubber-Tired Gantries: 18 Outbound Gates: 12 CY Side or Top Loaders: 12 Reversible Gates: 0 CY Straddle Carriers: 0 Total Gates: 30 CY Reach Stackers: 0 On-Line Access System: Navis Express/WebAccess Total CY Lift Machines 30 Appointment System: N/A On-site M&R (yes/no): Yes Reefer Plugs/Slots: 300 On-dock Rail (yes/no): No Terminal Hours: Gate Hours: Monday through Friday: 7 am 5 pm Monday through Friday: 7 am 5 pm Notes: Entrance Gates: Port Road, 8 Inbound, 4 Outbound. Acreage: 90 total, wharf 5.6 acres, container yard 60.3 acres, gate 23.4 acres. Intermodal rail ramp at Barbours Cut. Page 120

129 Container Yard Storage Capacity Exhibit 155 summarizes land use for the Port of Houston. The combined acreage of the two terminals is 433 acres with 364 net terminal acres. This creates a net to gross land use ratio of 84% for the current developed terminal areas. The Bayport terminal has several hundred undeveloped acres available for future container terminal expansion. Exhibit 155: Port of Houston Land Use Port Land Use Barbours Cut Bayport Port Total Gross Acres CY Acres Rail Acres Other Non-CY Acres Net Berth/Gate/Yard Acres CY/Gross Ratio 54% 82% 63% Exhibit 156 applies standard CY storage factors to the port acreage. Houston has a mix of wheeled, stacked, and RTG storage areas. Based on interpretation of aerial photographs it was estimated that the CY area of 272 acres produced 55,840 storage slots. Annual CY sustainable capacity is estimated at 3.1 million TEU producing annual utilization of 57 % relative to 2008 volume of 1.8 million TEU. Exhibit 156: Port of Houston Near Term CY Storage Capacity Container Yard Capacity Barbours Cut Bayport Port Total Wheeled Chassis Slots 5,680 2,160 7,840 Grounded Straddle Carrier Slots Grounded Stacked Slots 2,400 6,000 8,400 Grounded RTG Slots 24,600 15,000 39,600 Grounded RMG Slots TEU Storage Slots 32,680 23,160 55,840 Avg TEU Slots/CY Acre Maximum Annual Slot Turnover Maximum Annual CY TEU Capacity 2,287,600 1,621,200 3,908,800 Sustainable CY TEU 80% 1,830,080 1,296,960 3,127, Annual TEU 750, ,547 1,794, TEU per CY Slot CY Capacity Utilization 41% 36% 57% Crane Capacity Exhibit 157 provides a summary of the Port of Houston s cranes and an estimate of crane capacity. The port operates 19 cranes at its two terminals. Annual crane capacity for the port is estimated to be 4.8 million TEU with 2008 utilization at 37%. In addition, three additional cranes are being added to the Bayport terminal with delivery expected by the end of Page 121

130 Exhibit 157: Port of Houston Near Term Crane Capacity Crane Capacity Barbours Cut Bayport Port Total Cranes Available Crane Hours per Day Current Annual Operating Days Current Annual Hours/Crane 4,000 4,000 4,000 Annual Available Crane Hours 52,000 24,000 76,000 Sustainable 80% 41,600 19,200 60,800 Avg. TEU/Available Crane-hour Avg. Annual TEU/Crane 57,703 78,425 94,437 Crane Capacity, Moves/hour Sustainable 80% Port average TEU/container Crane Capacity TEU/hour Annual Crane Capacity 3,276,000 1,512,000 4,788,000 Current Annual TEU 750, ,547 1,794,309 Current Crane Utilization 23% 31% 37% Berth Capacity The Port of Houston berth capacity estimate in TEU for the maximum vessel size is summarized in Exhibit 158. This estimate gives near-term berth capacity of 3.6 million TEU and berth utilization of 50%. In addition, the berth length at Bayport is undergoing an expansion project which will extend it to 3,300 feet by the end of Exhibit 158: Port of Houston Near Term Berth Capacity Maximum Vessel Basis Berth Capacity - Max Vessel Basis Barbours Cut Bayport Port Total Berths Berth length 6,000 2,000 8,000 Berth Depth - Feet Max Sailing Draft Corresponding Design 95% Corresponding DWT 42,512 42,512 42,512 Nominal Max Vessel TEU 3,420 3,420 3,420 Corresponding Vessel Length - Feet Vessel Spacing (Beam) Length requirement Available Berths for Max Vessel Port average TEU/container TEU 1,768,627 Avg. TEU/Vessel 2,162 Avg. Vessel DWT 48,220 Average Est. Vessel Capacity TEU 3,895 Average Discharge & Load % 56% Average TEU per Max Vessel 1,898 1,898 1,898 Max Vessel Calls per Berth 5/wk Sustainable Vessel 80% Total Sustainable Vessel Calls 1, ,872 Annual Berth Capacity TEU 2,763, ,657 3,553, Annual TEU 750, ,547 1,794,309 Berth Utilization, Max Vessel Basis 27% 60% 50% Page 122

131 Berth capacity based on vessel calls is summarized in Exhibit 159. This approach generates berth a capacity estimate 1,664 vessel calls and 2007 berth utilization of 49%. Exhibit 159: Port of Houston 2007 Berth Capacity Vessel Call Basis Berth Utilization - Vessel Call Basis Barbours Cut Bayport Port Total Max Vessel Calls per Berth 5/wk Sustainable Vessel 80% Available Berths Total Sustainable Vessel Calls 1, , Vessel calls Berth Utilization 49% Capacity and Productivity Summary Exhibit 160 summarizes the capacity and productivity analysis for CY space, container cranes, and vessel berths for the Port of Houston. This analysis estimates current CY utilization of 57%, crane utilization at 37% and berth utilization at 49% on a vessel call basis and 50% on a maximum vessel basis. These estimates indicate that the port has adequate capacity to handle future growth. In addition, the Bayport terminal is undergoing a berth expansion project which will add 1300 feet of berth length and three new container cranes by the end of Page 123

132 Exhibit 160: Port of Houston Near Term Capacity and Productivity Summary Terminal Space Barbours Cut Bayport Houston 2008 TEU 750, ,547 1,794,309 Gross Acres CY Acres CY/Gross Ratio 54% 82% 63% Sustainable CY TEU 80% 1,830,080 1,296,960 3,127,040 Annual TEU/Gross Acre 2,476 3,611 4,141 Annual TEU/CY Acre 4,546 4,398 6,597 Est. CY TEU Slots 32,680 23,160 55,840 Avg. CY Slots/ Acre - Density Avg. Annual TEU/CY Slot (Turns) CY Utilization 41% 36% 57% Container Cranes Barbours Cut Bayport Houston Cranes Cranes per Berth Annual Crane Capacity - TEU 3,276,000 1,512,000 4,788,000 Avg. Moves/Available Crane-Hour Annual TEU/Crane 57,703 78,425 94,437 Annual Moves/Crane 32,057 43,569 52,465 Annual Vessel Calls/Crane (2007) - 43 Crane Utilization 23% 31% 37% Berths and Vessels Barbours Cut Bayport Houston Berths Berth Feet 6,000 2,000 8,000 Annual Vessel Calls per Berth (2007) 102 Berth Utilization - Vessel Call Basis 49% Annual TEU per Berth 125, , ,289 Annual TEU/Foot of Berth Average Vessel Capacity - TEU 3,895 Est. Max. Vessel Capacity - TEU 3,420 3,420 3,420 Avg. vs. Max. Vessel Capacity 114% Average TEU per Vessel (2007) 2,162 Avg. Vessel Utilization - % Discharge/Load 56% Berth Capacity - Avg. Vessel Basis 4,047,518 Berth Utilization - Avg. Vessel Basis 44% Avg. Discharge/Load per Max. Vessel 1,898 Berth Capacity - Max. Vessel Basis 3,553,456 Berth Utilization - Max. Vessel Basis 50% Page 124

133 VI. Appendix: Secondary Container Ports Wilmington, NC. The Port of Wilmington, NC is owned and operated by the North Carolina State Ports Authority and illustrated below. The terminal is a multipurpose facility serving containers, bulk, and break-bulk shipments. Exhibit 161: Wilmington, NC The terminal handled 196,040 TEU in Of the 80.1 acres listed as container yards, 57.7 are currently in use as top pick storage. Three of the nine berths (2,633 of 6,768 ) are near the CYs. Water depth at the berth is 42. Based on standard efficiency factors the current capacity is approximately 638,000 TEU and would be easily expandable to over 1 Million TEU by using all the available CY space. The Military Ocean Terminal at Sunny Point, N.C. is located down the Cape Fear river from Wilmington, NC near the Atlantic Ocean. The facility is a large ammunition port, and the Army's primary east coast deep-water port. The Army has almost completely containerized its ammunition shipments. The nine berths measure over 6000 on three trestles. The south and center trestle are dredged to 38 of depth. The facility has 2 container cranes on the south trestle. The 8,502 acre facility has a number of unique design features associated with the specialized and high explosive nature of the cargo which make many of the standard productivity measures meaningless. Palm Beach, FL. The Port of Palm Beach is located in Riviera Beach, Florida, just north of the city of West Palm Beach. The port of Palm Beach is a landlord port owned by the Port of Palm Beach District. The Port s Riviera Beach terminal is a mixed use facility handling containers, bulk and breakbulk cargo. The terminal, shown in Exhibit 162, occupies 153 acres. The terminal has three slips and provides 13 berth faces with a total length exceeding 6000 feet. The longest berth is 1110 feet located on the south face of slip one, the northernmost slip. The Port also has a Port Capacity Report Draft.doc Page 125

134 cruise ship terminal on the north side. The terminal is limited to handling cruise ships up to 680 feet in length. The port is located less than 1.5 miles from the Atlantic Ocean and has channel berth depth of 33 feet. The port operates its own switching rail line which provides on dock switching service for carload and intermodal rail cars. The Port s direct rail connection is with the FEC Railroad. Exhibit 162: Port of Palm Beach - Riviera Beach Terminal Source: Google Earth Image Date January 20, 2009 The Port s container operating tenant is Tropical Shipping, a Caribbean container carrier. Tropical s corporate office is located on the Riviera Beach terminal. Tropical utilizes about 55 acres of the terminal for its container operations. Based on the aerial photograph above, Tropical utilizes six mobile harbor cranes for loading and unloading its container ships. The terminal also has Ro-Ro capability on the inner face of slips one and two. Palm Beach container volume in 2008 was 244,638 TEU. Tampa, FL. The Port of Tampa is located at the north end of Tampa Bay about 33 miles from the Gulf of Mexico. The Port is primarily a bulk cargo port handling over 40 million tons of liquid and dry bulk cargoes in The Tampa Port Authority owns a 40 acre container terminal which is operated by stevedoring company Ports America. The Tampa Container Terminal, shown in Exhibit 162, has two berths with a total berth length of 2100 feet. The berths are equipped three gantry cranes. The entrance channel and main container berth are maintained to a depth of 43 feet. A terminal expansion project completed in April 2010 increased the terminal area from 25 to 40 acres taking terminal capacity to 200,000 annual TEU. The Port has a phased expansion plan to increase the container terminal to 140 acres with 750,000 TEU capacity over the next three to five years Port Capacity Report Draft.doc Page 126

135 Exhibit 163: Port of Tampa Source: Google Earth Image Date December 19, 2007 The terminal is served by Zim Shipping Services which provides a weekly Asia-Gulf Express service and Horizon Lines which provides a Gulf Puerto Rico Service container volume was 48,788 TEU. The Port Authority projects 2010 volume at 61,000 TEU. Gulfport, MS. The Port of Gulfport, MS, is owned and operated by the Mississippi State Port Authority (MSPA). The port operates 10 berths on two piers with a total berth length of nearly 6000 feet. The Gulfport terminal, shown in Exhibit 162 is a mixed use facility handling bulk, breakbulk, and containerized cargo. The terminal is equipped with two Gottwald 100 ton cargo cranes and has 400,00 square feet of covered storage. The port area encompasses 204 acres with over 80 acres of open and container storage. The port channel is dredged to a depth of 36 feet Port Capacity Report Draft.doc Page 127

136 Exhibit 164: Port of Gulfport Source: MSPA Website Image Date December 2009 MSPA utilizes the services of two stevedoring companies, Stevedoring Services of America (SSA) and Ports America Gulfport. The Port is served by three container shipping lines, Chiquita s Great White Fleet, Dole Fresh Fruit Company and Crowley Maritime. These lines principally serve the Central American Markets with Chiquita and Dole handling imported produce. The port handled 214,074 TEU in The port has no on dock container crates; containers are loaded and unloaded with the vessel mounted cranes of self sustaining containerships. The port was severely damaged in 2005 by hurricane Katrina. As a result the Port is in the process of undergoing a major restoration project to repair damage and to elevate the Port to an elevation of 25 feet above sea level. The first phase of this project is filling a 60 acre area adjacent to the West Pier. This project is approximately 54% complete. The second phase of the project is to fill an additional 24 acres for a total expansion of 84 acres of the West Pier. Freeport, TX. Freeport handled 71,900 TEU in The facility includes 186 acres of developed land, a 400-foot-wide, 45 deep channel, and a 70 deep berthing area with 14 individual berths. Rail access is to the Union Pacific Railway. The terminal had over 3000 vessel and barge calls per year, primarily serving bulk commodities. Primary imports include aggregates, chemicals, clothing, crude oil, foods (fruit), paper goods, plastics, and windmills. Top export commodities include autos, chemicals, clothing, foods, paper goods, resins, and rice. The primary container cargo moving through the port are bananas and other fresh fruits. Like Wilmington, DE, Dole and Chiquita are major tenants. A major new container terminal is under construction in Freeport. The initial phase of the Velasco Terminal is expected to open in the second quarter of Phase I consists of an 800 berth, 50 depth, and 20 acres of CY space. The ultimate build out is 2,400 of berthing and Port Capacity Report Draft.doc Page 128

137 acres of CY space plus a rail intermodal terminal. estimates the projected capacity of the facility at over a million TEU. Exhibit 165: Freeport, TX Port of Beaumont, TX. The Port of Beaumont is the U.S. Military s second largest port. It has extensive bulk, break-bulk, and ro-ro facilities. The Sabine-Neches Channel is a minimum of 400 feet wide and maintained at a depth of 40 feet. Air draft is 136 feet. The facility handled 3,280 TEU in Port of Port Arthur, TX. The Port of Port Arthur advertises itself as capable of any kind of break-bulk marine service. It specializes in forest products; iron and steel products; dry bulk cargoes; project and military cargo; and bagged and bailed goods. It handled 170 TEU in Port of Texas City, TX. The Port of Texas City and Texas City Terminal Railway is a privately owned port specializing in oil and other bulk commodities. The port s key shareholders are the BNSF and UP railroads. Port of Galveston, TX. The Port of Galveston is served by the Galveston Channel which is a minimum of 1200 wide and 40 deep. The facility consists primarily of a several bulk and break bulk facilities. The port includes a 38 acre container terminal that handled 8,666 TEU in This facility is slated to be closed in favor of a proposed 1200 acre container terminal development on nearby Pelican, Island, which in turn is to be constructed after Houston s new Bayport terminal is operating at capacity. Port of Corpus Christi, TX. The Port of Corpus Christi is a large oil, liquid bulk, and dry bulk port. It did not handle any containers in Port Capacity Report Draft.doc Page 129

138 Exhibit 166: Additional Texas Ports Port Capacity Report Draft.doc Page 130