NJFuture Redevelopment Forum 13 Ports Larrabee

NJ FUTURE 2013

REDEVELOPMENT FORUMMarch 1, 2013

Rick Larrabee - Director Port Commerce Department

•10% of World Trade is to/from the USA

•22% of World GDP is US GDP

•25% of US GDP is International Trade

•90% US International Trade(by volume) Moves by Water

•65% (by value)

Why Ports are Important

Why are Ports Important?

In 2010, the New York-New Jersey Port Industry supported:

•170,770 direct jobs

•279,200 total jobs in the NY-NJ region

•Nearly $11.6 billion in personal income

•Over $37.1 billion in business income

•Almost $5.2 billion in federal, state and local tax revenues

•Local and State Tax Revenue: $1.6 billion

•Federal Tax Revenue: $3.6 billion Source: Economic Impact Study - NYSA

PONYNJ Trade Distribution by Foreign Region - 2011

Source: PIERS

Container Growth in NY& NJ (TEU)

Location

Ability to reach 20% of the U.S. population in under 8 hours; more than 30% in under 48 hours.

21% of U.S. Retail Sales are in the Northeast;18% in the Midwest

58% of Canadian Retail Sales are in the Provinces of Ontario & Quebec

Immediate entry to the most densely populated region of the U.S.

Quick access to major population centers

GGiiooaa TTaauurroo

Colombo SSiinnggaappoorree

Kaohsiung

KKoobbeeLosAngeles

NewYork/NewJersey

JJiiddddaahh

Landbridge10-State Market Area

Algeciras

HongKong

PONYNJ: All Water Service

New Panama Canal Locks

WILL WE BE READY?

Rebuilding the Port

50 Foot Harbor Deepening Project Update

Completion Dates:

Nov. 2010

USACE as of March 2012

December 2012:Newark BayPort Jersey ChannelKill van KullAmbrose Channel

By 2014:Arthur Kill

Unparalleled Rail Network

$600M On-Dock Port Rail Investment

More Inland DestinationsServed by CSX, Norfolk Southern & Canadian Pacific Railway

NJMT Roadway Improvements

North Ave. / McLester St. Curve Realignment Completed - 12/11

Port St. & Brewster Rd. Comp. 3Q - 2013

McLester St. Roadway Widening Comp. 4Q - 2013

Warehousing and Distribution

•Most densely populated and affluent US region

•Push for one day fulfillment on internet sales

•Amazon investment in 1 m sq ft facility in Robbinsville, NJ. / 400+ employees

•NJ/PA market is 2nd largest industrial real estate market in USA (CA #1)

Clean Air Strategy

Retrofit Two Locomotives With GenSets:

$1.8M CMAQ grant, $600K PANYNJ investment, $600K CSX & NS investment

Ocean-going Vessel Low Sulfur Fuel Incentive:

$6.36 M program financed by PANYNJ Reimburse 50% of cost differential: bunker fuel vs low sulfur fuel. Vessel speed reduction

Brooklyn Cruise Terminal Shore Power Installation:

$15 million program, $2.85 million EPA grant

Cargo Handling Equipment (CHE) Fleet Modernization :

$2.24 million program incentives by PANYNJ; Reimburse tenants 20% of the cost to replace older CHE with newer or cleaner CHE.

THANK YOU