City of Los Angeles Investors Conference February 27, 2014 Outline - - PowerPoint PPT Presentation

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City of Los Angeles Investors Conference February 27, 2014 Outline - - PowerPoint PPT Presentation

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City of Los Angeles Investors Conference February 27, 2014 Outline POLAs Favorable Market Position and Service Advantage Cargo Volumes Financial Update Funding Flexibility Capital Improvement Program Trade Flows and

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City of Los Angeles Investors Conference February 27, 2014

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  • POLA’s Favorable Market Position and Service

Advantage

  • Cargo Volumes
  • Financial Update
  • Funding Flexibility
  • Capital Improvement Program
  • Trade Flows and Logistics

Outline

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POLA’s Service Advantage and Favorable Market Position

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  • We have excellent facilities
  • 8 container terminals with 79 cranes on 1600 acres
  • 53 feet depth of water
  • 50 container ship berths
  • Superior intermodal connections provides swift

movement of trains into and out of the port

  • 100 intermodal trains a day serving over 13 major

markets in the U.S.

  • 113 miles of rail track

Port of Los Angeles - Service Advantage

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  • We are in a great location
  • Close proximity to Asia market
  • In the middle of over 19 million consumer base in

the five county Southern California area

  • About 50% of goods into the Port goes to the five

county area

  • Proximity to largest aggregation of warehouse

space in the world, comprising about 1.5 billion square feet,

Port of Los Angeles - Service Advantage

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  • Ability to serve vessels larger than what can

transit the Panama Canal

  • Skilled longshore labor force
  • Advanced environmental standards
  • Right-sized, highly trained port staff
  • Very strong financial position
  • Stable customer base

Port of Los Angeles - Service Advantage

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  • Largest container port in the U.S. in terms of

volume

  • In 2012, 23% of the nation’s containerized imports

arrived via the Port of Los Angeles

  • Diverse Port operations
  • Cargo activity
  • Steel products
  • Metal scrap
  • Fruit
  • Autos
  • Liquid bulk
  • Cruise ships

Favorable Market Position

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Cargo Volumes

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6.5 5.6 4.6 2.6 2.4 2.0 1.9 1.8 1.7 1.3

  • 1.0

2.0 3.0 4.0 5.0 6.0 7.0

In Millions

POLA Continues To Lead North American Container Ports in Volume

*Total loaded and empty containers handled in domestic and foreign trade. Sources: Port operator websites

Top 10 Ports by Total TEUs (Twenty-foot Equivalent Units)* January – October 2013

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Steady Container Volumes

  • Exports comprise mainly of wastepaper, scrap metal, animal feeds,

cotton, and resins

  • Imports comprise mainly of furniture, apparel, auto parts, electronic

products, and footwear

4,257 3,808 3,708 4,043 4,173 3,936 1,762 1,650 1,807 1,933 2,160 1,909 67 59 76 143 144 117 1,995 1,745 1,636 1,815 1,707 1,816 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 I n T h

  • u

s a n d s

Out Empty In Empty Out Loaded In Loaded

8,081 7,262 7,227 7,934 8,184 7,778

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Financial Update

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  • Annual review and approval by the

Board

  • Strong days cash on hand
  • History of responsible expense control

Consistent and Conservative Financial Policies and Practices

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  • Operating and Other Revenues includes total operating and non-operating revenues

according to the Additional Indebtedness Test for Debt Service Coverage calculation.

  • Operating Expenses includes payroll, fringe benefits, payments for City services and certain
  • ther costs of the Department.
  • Available Revenues are Operating & Non-Operating Revenues after payment of Operating

Expenses and Other Payments due to the City.

  • Debt Service Coverage is Available Revenues divided by Debt Service.

Source: Harbor Department of the City of Los Angeles

History of Strong Debt Service Coverage

2010 2011 2012 2013 $424,321 $412,962 $435,291 $416,974 $210,235 $209,695 $199,806 $205,169 $214,086 $203,267 $235,485 $211,805 $66,851 $72,443 $71,649 $72,401 3.2 2.8 3.3 2.9 Audited Fiscal Year Ending June 30th

(in thousands)

Historical Revenues, Expenses and Debt Service Coverage Fiscal Years 2010 - 2013 Debt Service Coverage Operating & Other Revenues Operating Expenses Available Revenues Debt Service

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  • AA long term debt rating
  • A-1+/P-1 commercial paper rating
  • Active use of grant funding
  • Consistent and healthy cash flows

Flexible Sources of Funding

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Capital Improvement Program

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  • Terminals/Commerce $256.6 M
  • Transportation Projects 126.1 M
  • Security

8.7 M

  • Community

31.1 M

  • Maritime Services

(22.6) M

  • Total:

$399.9 M

FY 2014 Adopted CIP Budget

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Trade Flows the Panama Canal and Transit Times

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Top Trading Partners

(FY 2013 TEU* Count by Country)

* TEU = twenty foot equivalent units. Source: Ports Import Export Reporting Services (Data from PIERS excludes domestic cargo and empties.)

Exports

TEU's

Imports

TEU's

Nation Nation

China

598,546

34.4 % China

2,083,523

53.6 % South Korea

190,202

10.9 South Korea

241,896

6.2 Japan

188,251

10.8 Taiwan

220,652

5.7 Taiwan

175,650

10.1 Vietnam

200,325

5.2 Hong Kong

73,339

4.2 Japan

191,947

4.9 Australia

59,992

3.5 Thailand

153,575

4.0 Vietnam

48,353

2.8 Indonesia

135,665

3.5 Thailand

39,848

2.3 Hong Kong

113,288

2.9 Singapore

39,061

2.2 Malaysia

100,133

2.6 Philippines

35,897

2.1 India

57,404

1.5 All Others

290,723

16.7 All Others

385,443

9.9 Total

1,739,862

100.0 % Total

3,883,851

100.0 % % %

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What the Modern Ships can Carry

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How Big is Big?

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What Size Ship Fits Through the Canal

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Superior Service Times

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Rail Connections are Key

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Geographic Break-Even Lines

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The Arrival of Automation

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Automation Refers to Automated Crane Operations

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  • A one mile long freight car carrying two 40 foot

container per car can carry 300 containers or 600 TEUs

  • A 12,000 TEU container ship would require 20

miles of container carriers

  • The quicker to load and unload, the faster the

ship turnaround time

Logistics of Container Movement

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  • Big ship capable
  • Automation underway at one

terminal

  • Excellent intermodal connections
  • Compelling location
  • Population base
  • Business base

Los Angeles Is Ready

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  • We are plain vanilla
  • Our long-term bonds are fixed-rate and even-

amortization

  • Our short-term is commercial paper, the only

variable rate debt we have

  • We are considering issuing in the latter half of

this year

  • We thank those who hold our bonds
  • We remain completely open to investors to call

and visit us

Our Debt Issuance Plans

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  • Port of Los Angeles Website
  • www.portoflosangeles.org
  • TEU statistics: http://www.portoflosangeles.org/maritime/stats.asp
  • Financial information:
  • Audited statements:

http://www.portoflosangeles.org/finance/financial_statements.asp

  • Bond disclosures:

http://www.portoflosangeles.org/finance/bond_disclosure.asp

  • Strategic plan:

http://www.portoflosangeles.org/business/strategic_plan.asp

  • Karl Pan, Chief Financial Officer:

310-732-7703, kpan@portla.org

  • Soheila Sajadian, Director of Debt & Treasury:

310-732-3756, ssajadian@portla.org

Contact Information