PORT OF SAVANNAH The Southeast Gateway for the U.S. February 16, - - PowerPoint PPT Presentation

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PORT OF SAVANNAH The Southeast Gateway for the U.S. February 16, - - PowerPoint PPT Presentation

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PORT OF SAVANNAH The Southeast Gateway for the U.S. February 16, 2017 CREATING OPPORTUNITIES THROUGHOUT GEORGIA MISSION STATEMENT Develop, maintain and operate ocean and inland river ports within Georgia; foster international trade and new

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The Southeast Gateway for the U.S.

February 16, 2017

PORT OF SAVANNAH

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CREATING OPPORTUNITIES THROUGHOUT GEORGIA

MISSION STATEMENT

Develop, maintain and operate ocean and inland river ports within Georgia; foster international trade and new industry for state and local communities; promote Georgia's agricultural, industrial and natural resources; and maintain the natural quality of the environment.

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GEORGIA PORTS AUTHORITY:

MORE DEEPWATER TERMINAL OPTIONS

Garden City Terminal Ocean Terminal East River Terminal / Lanier Docks Colonel’s Island Terminal Mayor’s Point Terminal

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PORT OF SAVANNAH (GCT) THROUGHPUT

17-year Calendar Year History

Source: GPA Marketing (loads & empties);* CAGR- Compound Annual Growth Rate

+21% +13% +23% +15% +9% +14% +14% +21% +0.5%

  • 10%

+20% +4% +1% +2% +10% +12% -2%

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 USWC Port Congestion/ Labor Unrest

In Millions of TEUs

China Enters WTO 1M TEU Milestone Suez Services Emerge USWC Port Closure Economic Recession 8.7% CAGR* since 2000 & 4.4% CAGR* since 2014

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PORT 2005 TEUs 2015 TEUs

  • 1. LOS ANGELES

7,484,624 8,160,458

  • 2. LONG BEACH

6,709,818 7,192,066

  • 3. NY/NJ

4,785,318 6,371,720

  • 4. SAVANNAH

1,901,506 3,737,425

  • 5. SEA/TAC

3,289,279 2,760,811

  • 6. VIRGINIA

1,981,955 2,549,270

  • 7. OAKLAND

2,273,990 2,277,515

  • 8. HOUSTON

1,582,081 2,130,544

  • 9. CHARLESTON

1,984,887 1,973,202

  • 10. PT. EV

814,745 1,056,524 TOP TEN TOTAL 32,808,203 38,209,535

1.5%

2.6%

  • 0.1%

3.0% 0.0% 2.5%

  • 1.7%

7.0% 2.9% 0.7% 0.9% 10-YEAR CAGR

Source: AAPA; throughput excluding domestic

SAVANNAH: #4 AND FASTEST GROWING

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SAVANNAH:

A GLOBAL COMMERCE HUB

Source: American Shipper BlueWater Reporting & Carrier Websites November 22, 2016

8 31 4 25

34

8 22 16

SAVANNAH

JAX MIA PEV CHA NFK WIL BAL 9 PHIL

34 WEEKLY SERVICES COVERING THE WORLD Key Savannah Service Features:

  • Offers 6 Services via Panama
  • Offers 9 Services via Suez
  • First in = 8; Last out = 12 (All Trades)

34 NY/NJ

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AVERAGE OVER 9,200 GATE MOVES/DAY; SINGLE 33 MINUTES; DOUBLE 54 MINUTES.

  • 4 Gates. 48 Lanes with 28 Pre-check Lanes. 12 Portal Approach Lanes.
  • Monday through Friday

6am to 6pm

  • Saturday (Gate 4 only)

8am to Noon, 1pm to 5pm

Gate Fluidity

Source: GPA Gate Operations, Average moves/turn times for January-December 2016 Monday-Friday

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Data SIO, US Navy, NGA, GEBCO 2015 TerraMetrics

Garden City Terminal

SAVANNAH NEAR PORT MAJOR CUSTOMERS

  • Near Port Total Warehouse Space = 47.96 million ft2 (4.5 million m2)
  • Near Port Total Bulk Warehouse Space (over 100K ft2/ 9,300 m2) = 30.4 million ft2

(2.8 million m2)

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Georgia Named #1 State for Business*

4 Years in a Row

*SOURCE: (SITE SELECTION: 2016, 2015, 2014, 2013)

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  • 9 Container berths
  • 9,693 ft (2,955 m) of contiguous

berthing space

  • 26 Container cranes
  • 146 Rubber-tired gantries
  • 1,200 acres (485.6 ha) terminal area

Mason ICTF served by Norfolk Southern Railroad Chatham ICTF served by CSX Transportation

GARDEN CITY TERMINAL TODAY

LARGEST SINGLE TERMINAL IN NORTH AMERICA

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UPDATE SAVANNAH HARBOR EXPANSION PROJECT (SHEP)

  • Project construction has begun
  • First phase of excavation of CSS

GEORGIA complete

  • Entrance channel dredging underway at

42% completion

  • Dissolved oxygen system tested,

approved, and under construction

  • Site clearing for raw water storage

impoundment system underway

  • Over $300M in funding in place
  • $266M in state funding allocated
  • Over $40M in initial federal funding
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1,000 2,000 3,000 4,000 5,000 6,000 7,000 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

We Strive to Keep Capacity Well Ahead of Demand through Long-term Planning

STAYING AHEAD OF THE GROWTH CURVE

CY 2016 Throughput 3.64 million TEUs CY 2026 Throughput Capacity 6.5 million TEUs Past Demand Capacity

In Thousands of TEUs

Current Demand Future Demand

Source: GPA Marketing (loads & empties)

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  • GPA is owner & operator = Flexibility
  • Single-terminal design = Transportation Synergies
  • 4th busiest U.S. container port = Strategic Gateway
  • Most global services among U.S. Southeast Coast

& Gulf ports = Service Reliability

  • 2 on-terminal Class 1’s = CSX & Norfolk Southern
  • Largest concentration of retail import distribution

centers in the U.S. Southeast = 34 weekly carrier service options & empties for export opportunities

  • Fast & convenient infrastructure = Faster to Market

Summarizing Garden City Terminal’s Advantages…

NO OTHER PORT CAN DELIVER THE ‘SAVANNAH MODEL’.

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U.S. RENEWABLE ENERGY SUPPLY

Quadrillion British thermal units (Btu)

Source: U.S. Energy Information Administration; Short-Term Energy Outlook, February 2017

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SAVANNAH / BRUNSWICK: #1

FUEL WOOD, CHIPS, PELLETS, SCRAP, ETC. EXPORTS

Norfolk, VA 20% Coos Bay, OR 19% Savannah, GA 16%

Panama City, FL

9%

Baton Rouge, LA

7% Mobile, AL 7%

Port Arthur, TX

5%

Brunswick, GA

4% Other 13%

Vessel Exports of HS 4401 during CY2016 by U.S. Port

Source: U.S. Census Bureau: Economic Indicators Division USA Trade Online- Total Vessel Weight; Harmonized Commodity 4401- Fuel Wood in Logs, etc, Wood in Chips, etc.

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16 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2012 2013 2014 2015 2016 Non-Container Container

Thousands of Short Tons

FUEL WOOD, CHIPS, PELLETS, SCRAP, ETC.

EXPORTS HAVE GROWN 67% SINCE 2012

Vessel Exports of HS 4401 during CY2012-CY2016

Source: U.S. Census Bureau: Economic Indicators Division USA Trade Online- Total Vessel Weight; Harmonized Commodity 4401- Fuel Wood in Logs, etc, Wood in Chips, etc.

  • Predominantly non-container
  • Driven by growth of wood pellets
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SAVANNAH / BRUNSWICK: #2

WOOD PELLETS

Norfolk, VA 30% Savannah, GA 18%

Panama City, FL

15%

Baton Rouge, LA

12% Mobile, AL 9%

Port Arthur, TX

8%

Brunswick, GA

7%

Pascagoula, MS

1% Other 0%

Vessel Exports of HS 440131 during CY2016 by U.S. Port

Source: U.S. Census Bureau: Economic Indicators Division USA Trade Online- Total Vessel Weight; Harmonized Commodity 440131- Wood Pellets

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18 1,000 2,000 3,000 4,000 5,000 6,000 2012 2013 2014 2015 2016 Non-Container Container

Thousands of Short Tons

EXPORTS OF WOOD PELLETS HAVE GROWN 152% SINCE 2012

  • Increased from 0 short tons in 2011 to well over 5 million short tons in 2016
  • Almost exclusively non-container. However, the Port of Savannah was #1

for container exports of wood pellets during 2016. Vessel Exports of HS 440131 during CY2012-CY2016

Source: U.S. Census Bureau: Economic Indicators Division USA Trade Online- Total Vessel Weight; Harmonized Commodity 440131- Wood Pellets

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EAST RIVER TERMINAL & LANIER DOCKS

  • Dedicated Breakbulk & Dry Bulk

Facility

  • GPA Owned & Operated by Logistec
  • Terminal Area: 66 acres (27 ha)
  • Berthing: 1,600 ft (488 m)
  • Warehousing: 428,500 ft2 (39,809 m2)
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Wood Pellet Markets

BIOMASS IN BRUNSWICK

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  • Specialized terminal for wood pellets and biomass cargo
  • Two newly built warehouses, completed in 2016

– Bulk 4: 140,000 square feet, 50,000 metric ton storage capacity – Bulk 5: 82,675 square feet, 25,000 metric ton storage capacity

EAST RIVER TERMINAL

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  • Truck and rail (CSX & NS) receiving capability, direct to warehouse
  • Advanced dust collection and load out system
  • Total pellet storage capacity exceeds 670,000 square feet
  • Logistec has committed nearly $40 million to renovating and expanding its

facilities in Brunswick

EAST RIVER TERMINAL

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  • Modernized bulk load-out system, construction of a new ship loader, and

upgraded conveyor systems

EAST RIVER TERMINAL

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  • Flat in 2016-2017 for industrial (UK) and residential

(Europe)

– Warm winters – Exchange rate – Drax temporary shutdown of one unit for repairs

  • Optimistic for increased tonnages in 2018

– Several new utilities scheduled to come on line

  • RWE Lynemouth plant, Estonia in Langerlo, Dong Energy

– Estimated increase in UK and EU to exceed four million tons annually – South Korea and Japan expected to increase use of biomass plants

  • Between 10 million and 15 million annually by 2020
  • Primarily sourced as export from Vancouver (Fibreco) and Prince Rupert

(Pinnacle)

PELLET MARKET CONDITIONS

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FRAM RENEWABLE FUEL’S GROWTH

2005 Fram was Established (MT) 2007 ACP Operational 130,000 2010 ACP Expansion 100,000 2011 TFP Position 135,000 2011 Aggregate Tonnage 160,000 2014 HWP Phase I 300,000 2015 HWP Phase II 200,000 2015 Capacity 1,025,000

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  • Wholly owned subsidiary of Fram Renewable Fuels, LLC
  • Started in 2007

APPLING COUNTY PELLETS, LLC- BAXLEY, GA

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  • Production of wood pellets increased from 130K MT to 230K MT in 2012

APPLING COUNTY PELLETS, LLC- BAXLEY, GA

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APPLING COUNTY PELLETS, LLC- BAXLEY, GA

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  • Started in 2006
  • Produces a premium bedding products named “Pine Flakes”
  • Expanded wood pellet plant in partnership with Fram

TELFAIR FOREST PRODUCTS, LLC- LUMBER CITY, GA

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TELFAIR FOREST PRODUCTS, LLC- LUMBER CITY, GA

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  • Wholly owned subsidiary of Fram Renewable Fuels, LLC
  • Started in 2013; fully operational 2016 producing 500K MT of wood

pellets per year

HAZLEHURST WOOD PELLETS, LLC- HAZLEHURST, GA

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HAZLEHURST WOOD PELLETS, LLC- HAZLEHURST, GA

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  • Completed facility improvements Jan. 2011 for RWE Innogy / Georgia Biomass, LLC
  • 50K MT storage capacity in 2 dome silos
  • Loaded over 3M MT since 2011; avg. 22 handy size ships per year
  • Average wood pellet volume is 750k ST per year
  • 2.5 M MT wood pellet expansion capacity permitted and executable

PEEPLES INDUSTRIES: EAST COAST TERMINAL

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  • Capability to receive 80 car unit trains

(CSX)

  • Discharging 5 rail cars per hour
  • Loading average 14K MT per WWD

SHINC

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WOOD CHIPS

  • Exports to Turkey
  • Estimated 200k ST in 2016
  • Concern: Ukraine Competition
  • Potential New Market: China
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  • Currently the largest ships in the trade are Panamax size
  • 42’ draft adequate given the typically light weight of pellets and chips

WOOD PELLETS & WOOD CHIPS

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THANK YOU

10,100-TEU MOL Benefactor arrives at Savannah via expanded Panama Canal in July 2016