September 16, 2008 - Toledo Metropolitan Area Council of ... · •Opportunities for OhioOpportunities for Ohio’’s s intermodal network ... US Intermodal Rail ... Copyright ©

Copyright © 2008Copyright © 2008Confidential and ProprietaryConfidential and Proprietary

September 16, 2008September 16, 2008

http://www.tmacog.org/ohio_conference_on_freight.htm

Copyright © 2008Copyright © 2008

Why Are we Here?

Why Are we Here?


Why are we here?Why are we here?•Ohio is a major distribution State with great potential.

•This project presents an opportunity for incremental export and import opportunities

•Opportunities for Ohio’s intermodal network

•Opportunities for Ohio Ports• Seaway Regulatory Issues being addressed• US/ Canadian Flagged Carriers prepared to create

feeder service

••Ohio is a major distribution State with great potential.Ohio is a major distribution State with great potential.

••This project presents an opportunity for incremental This project presents an opportunity for incremental export and import opportunitiesexport and import opportunities

••Opportunities for OhioOpportunities for Ohio’’s s intermodalintermodal networknetwork

••Opportunities for Ohio PortsOpportunities for Ohio Ports•• Seaway Regulatory Issues being addressedSeaway Regulatory Issues being addressed•• US/ Canadian Flagged Carriers prepared to create US/ Canadian Flagged Carriers prepared to create

feeder servicefeeder service


Ohio Valley: 1,830 K

New England: 407 K

Midwest: 3,139 K

Ontario: 625 K

Quebec: 721 K

Atlantic Canada: 73 K

Source: PIERS; Norbridge AnalysisNote: Origin/Destination Data is N/A for 2.3 M units

The Market 2005The Market 2005


Ohio Valley: 560 K

Midwest: 856 K

Ontario: 300 K

Quebec: 408 K

Atlantic Canada: 40 K

Source: PIERS; Norbridge AnalysisNote: Origin/Destination Data is N/A for 2.3 M units

North Europe

Mediterranean

Indian Subcontinent

Southeast Asia

The Market from Melford Competitive Origins 2005The Market from Melford Competitive Origins 2005


Our Objective?Our Objective?•Create “Distribution Destinations”.••Create Create ““Distribution DestinationsDistribution Destinations””..

•Criteria:• Served by Intermodal access and/or Port

• Potential of 1000 TEU in and 1000 TEU out per week, export and import opportunities within a one day dray.

•There are a number of opportunities in Ohio

•That’s why we are here.

••Criteria:Criteria:•• Served by Intermodal access and/or PortServed by Intermodal access and/or Port

•• Potential of 1000 TEU in and 1000 TEU out per week, export Potential of 1000 TEU in and 1000 TEU out per week, export and import opportunities within a one day dray.and import opportunities within a one day dray.

••There are a number of opportunities in OhioThere are a number of opportunities in Ohio

••ThatThat’’s why we are here.s why we are here.

Copyright © 2008Copyright © 2008Confidential and ProprietaryConfidential and Proprietary

Melford Container Port & Intermodal Logistics Park

Project

Melford Container Port & Intermodal Logistics Park

Project



Strait of Canso, Nova ScotiaStrait of Canso, Nova Scotia


Causeway Lock Size:

24.4 m Wide9.8 m Depth

250 m Length

Causeway Lock Size:


250 m Length

Canso Causeway, Strait of Canso, Nova ScotiaCanso Causeway, Strait of Canso, Nova Scotia

Looking EastLooking East


The Strait of CansoCapable of Handling the World’s Largest Ships

The Strait of CansoCapable of Handling the World’s Largest Ships

14,000 acre 14,000 acre industrial reserveindustrial reserve

Terminal Site


Melford International Terminals:• Phase One: Private Sector Project• Three components:

• Marine Terminal (315 acre)• Intermodal Rail Terminal • Logistics Park (1500 acre)

Melford International Terminals:• Phase One: Private Sector Project• Three components:

• Marine Terminal (315 acre)• Intermodal Rail Terminal • Logistics Park (1500 acre)


Project Site Aerial ViewProject Site Aerial View


Road and Rail AccessRoad and Rail Access


Terminal and Logistic ParkTerminal and Logistic Park


Global Trends & Conditions

Global Trends & Conditions

International Maritime Cargo Demand Trends

International Maritime Cargo Demand Trends



World Bank’s 2010 “Global Economic Prospects”

World Bank’s 2010 “Global Economic Prospects”

00

World Output will Increase 33% in 10 yearsWorld Output will Increase 33% in 10 years

Trill

ions

$Tr

illio

ns $

1010

2020

3030

4040

20002000

$ 30 Trillion$ 30 Trillion

20102010

$ 40 Trillion$ 40 Trillion


World Container Traffic Has Been Growing at 3 Times World GDP Growth.World GDP & Containerized Traffic Growth

Source: Morgan Stanley ResearchSource: Morgan Stanley ResearchRebased to 100 for 1980 figures, percentages are CAGR (1980-2006)Rebased to 100 for 1980 figures, percentages are CAGR (1980-2006)

World Container Traffic 9.1%

World Trade Growth 7.4%

World GDP 3.5%

Rebased to 100 in 1980


World Container Forecast to 2024 in TEUs(186% Increase in Next 20 Years)

World Container Forecast to 2024 in TEUs(186% Increase in Next 20 Years)

Source: Global InsightSource: Global Insight

2007:96 M

2024:243 MForecast

Growth Rate (CAGR)1994 to 2004: 8.3 %

The Growing Asian Trade Challenge

The Growing Asian Trade Challenge



Mainland China Container Port Growth (Compound Annual Growth Rates)

Mainland China Container Port Growth (Compound Annual Growth Rates)

27.3 %

25.9 %

35.4 %17.1 %

30.1 %

5 Yr Average = 27.2%Increased Volume


Shanghai International Shipping CenterYangshan Deep Port & Logistics Park

54 New Berths54 New Berths

New Logistics ParkNew Logistics Park

New Port CityNew Port City

20 Mile New Port Access Bridge Constructed in 3 yrs


Shanghai International Shipping CenterYangshan Deep Port - 20 Mile Bridge Access


Southeast Asian Manufacturing Centroid ShiftCurrent Inbound U.S. Cargo Flow

Southeast Asian Manufacturing Centroid ShiftCurrent Inbound U.S. Cargo Flow

U.S. IntermodalRail Flow

U.S. IntermodalRail Flow

Eastbound: All Water FlowEastbound: US Intermodal Rail Flow Eastbound: All Water FlowEastbound: US Intermodal Rail Flow

Western Centroid Shift Western Centroid Shift


Southeast Asian Manufacturing Centroid Shift Current Inbound U.S. Cargo Flow

Southeast Asian Manufacturing Centroid Shift Current Inbound U.S. Cargo Flow

U.S. Intermodal Rail FlowU.S. Intermodal Rail Flow

WesternCentroidShift


Westbound All Water/Suez FlowWestbound All Water/Suez FlowWestbound Intermodal U.S. FlowWestbound Intermodal U.S. Flow

U.S. Intermodal Rail FlowU.S. Intermodal Rail Flow



Westbound All Water/Suez FlowWestbound All Water/Suez FlowWestbound Intermodal U.S. FlowWestbound Intermodal U.S. Flow

North AmericanPort & Intermodal Capacity Trends

North AmericanPort & Intermodal Capacity Trends



North American Containerized Tonnage Forecast

North American Containerized Tonnage Forecast

Source: DRI/McGraw HillSource: DRI/McGraw Hill

0

20

40

60

80

100

0

20

40

60

80

100

1990 1995 2000 2005 20101990 1995 2000 2005 2010

CAGRCAGR

NE (Maine to Virginia)SE (NC to Tampa)Gulf (Mobile to El Paso)SW (San Diego to OaklandNW (Oregon to Alaska)

NE (Maine to Virginia)SE (NC to Tampa)Gulf (Mobile to El Paso)SW (San Diego to OaklandNW (Oregon to Alaska)

6.3%

6.6%7.6%

7.2%

6.3%

6.6%7.6%

7.2%

1,00

0,00

0 To

ns1,

000,

000

Tons

Total 79.2 119.5 188.7 236.6 355.6 7.8%Total 79.2 119.5 188.7 236.6 355.6 7.8%

By 2020 Most Container Port GatewaysWill Double or Triple in Volume


North American Maritime Container Current and Future Trade Growth

North American Maritime Container Current and Future Trade Growth

(TEUs in thousands)

2020202020042004 1,4371,437

6,1656,165

HoustonHouston

13,10113,101

LA/LBLA/LB

1,6651,665

6,8486,848

2,0432,043 3,3823,382

OaklandOakland

4,4784,478

15,83515,835

NY/NJNY/NJ

1,8091,8095,5665,566

VirginiaVirginia

1,8601,860

6,6396,639

CharlestonCharleston

1,6621,662

9,4209,420

SavannahSavannah

1,7981,7984,3964,396

TacomaTacoma

1,7761,776 2,5572,557

SeattleSeattle

59,42059,420VancouverVancouver

Source: USDOT - Forecast figures based on 6 year linear regressionSource: USDOT - Forecast figures based on 6 year linear regression

By 2020 demand will exceed current capacity of many North American ports by as much as 200%.

(Top 10 Ports)


5.8

14.5

8.98.07.4

18.4

9.7 10.0

7.8

19.5

11.4 10.9

0

5

10

15

20

25

Pacific NorthwestPacific Northwest Pacific SouthwestPacific Southwest North AtlanticNorth Atlantic South Atlantic/ GulfSouth Atlantic/ Gulf

Demand 2004Demand 2004 Capacity 2010Capacity 2010 Demand 2010Demand 2010

US Port and Terminal 2010 Forecast Demand vs. Capacity (MM TEU)

Source: Modern Terminals LimitedSource: Modern Terminals Limited

Container Vessel Technology

Trends

Container Vessel Technology

TrendsCopyright © 2007Copyright © 2007


World Container Ship EvolutionWorld Container Ship Evolution

8,600 TEU8,600 TEU

1,700 TEU1,700 TEU

2,305 TEU2,305 TEU

3,220 TEU3,220 TEU

4,848 TEU4,848 TEU

5th Generation (2000 - 2006)5th Generation (2000 - 2006)Super Post PanamaxSuper Post Panamax

1st Generation (Pre-1960 - 1970)1st Generation (Pre-1960 - 1970)

2nd Generation (1970 - 1980)2nd Generation (1970 - 1980)

3rd Generation (1985)3rd Generation (1985)

4th Generation (1986 - 2000)4th Generation (1986 - 2000)

Ideal XIdeal X

PanamaxPanamax

Post PanamaxPost Panamax

Full CellularFull Cellular

TEU CapacityTEU Capacity

6th Generation (2006-2012)6th Generation (2006-2012)

Ultra Post PanamaxUltra Post Panamax 12,000+ TEU12,000+ TEU

Copyright © 2008Copyright © 2008Source: Journal of Commerce August 2006, Marine Log December 2006 Source: Journal of Commerce August 2006, Marine Log December 2006

The new-build known as “M/S Emma Maersk”, was christened at the Odense-Lindo Shipyard in Denmark in August 2006.

The nominal capacity of the new vessel could be as high as 14,000 TEUs based on its reported LOA of 397 m, Beam of 56 m, Draft of 15.5 m, Gross Tonnage 170,974 gt, Speed 25.5 knots

The new-build known as “M/S Emma Maersk”, was christened at the Odense-Lindo Shipyard in Denmark in August 2006.

The nominal capacity of the new vessel could be as high as 14,000 TEUs based on its reported LOA of 397 m, Beam of 56 m, Draft of 15.5 m, Gross Tonnage 170,974 gt, Speed 25.5 knots

A.P. Moller-Maersk September 2006 Service Announcement for 14,000 TEU Vessel

A.P. Moller-Maersk September 2006 Service Announcement for 14,000 TEU Vessel

S Class6800 TEUS Class

6800 TEU

L Class14,000 TEU

L Class14,000 TEU

US Roads and Rails are Congested

US Roads and Rails are Congested



Future US Truck Traffic GrowthIn Urban Consumption Zones

Future US Truck Traffic GrowthIn Urban Consumption Zones

TodayToday 20202020

Source: USDOT FHWA Freight Analysis FrameworkSource: USDOT FHWA Freight Analysis Framework


Future US Rail Traffic FlowsFuture US Rail Traffic FlowsTodayToday 20202020


Project CatalystsProject Catalysts


Global Trends and Conditions:Global Trends and Conditions:

• Increasing Asian Trade

• Ships Getting Bigger

• US Port, Rail and Road Congestion

• Increasing Asian Trade

• Ships Getting Bigger

• US Port, Rail and Road Congestion


Current Global Impacts

Current Global Impacts


Today’s Sector Drivers:Today’s Sector Drivers:• World Economic

Conditions

• Price of Oil, Impact on Transportation Costs

• Carbon Footprint

• World Economic Conditions

• Price of Oil, Impact on Transportation Costs

• Carbon Footprint

http://www.joc-digital.com/t=c/?1;15061;679;7213;0000;676003840;D8EzdzHobKuVC




Consequences of Global Impacts

Consequences of Global Impacts


Future Carrier Demands:Future Carrier Demands:• Vessels will Continue to

get Larger

• There will be Fewer Destinations

• Discharge Percentages will Increase

• Vessels will Continue to get Larger

• There will be Fewer Destinations

• Discharge Percentages will Increase


Melford’sValue Proposition

Exceeds The Demands

Melford’sValue Proposition

Exceeds The Demands

Canada’s Intermodal Land Bridge Advantage

Canada’s Intermodal Land Bridge Advantage



Canada’s Strategic Global Location(Shortest Trade Routes to Asia and Europe)

Canada’s Strategic Global Location(Shortest Trade Routes to Asia and Europe)

Trans-Pacific Route

Trans-Pacific Route

Trans-Atlantic (EU-NAFTA)

Trans-Atlantic (EU-NAFTA)

North South (NAFTA)

North South (NAFTA)


• Geography:Closest North American Mainland Deep Water Port to Europe/Suez• 29 Hour Advantage on New York• 36 Hour Advantage on Norfolk

• Geography:Closest North American Mainland Deep Water Port to Europe/Suez•• 29 Hour Advantage on New York29 Hour Advantage on New York•• 36 Hour Advantage on Norfolk36 Hour Advantage on Norfolk

““Our Value PropositionOur Value Proposition””

At 22 Knots down from 24.3 Knots, even if it adds an extra vessel to the rotation


• Through-put Efficiencies• Green Field Site• Latest: Technology/Design/Equipment• Optimum Vessel to Rail Transfer• Estimated Double Digit Savings

• Modern Labour Work Rules• Work Rules to Match Technology• Estimated Double Digit Savings

• Lowest Cost Operating Environment in North America• Real Estate Costs • Taxes• Labour• Construction

• Through-put Efficiencies•• Green Field SiteGreen Field Site•• Latest: Technology/Design/EquipmentLatest: Technology/Design/Equipment•• Optimum Vessel to Rail TransferOptimum Vessel to Rail Transfer•• Estimated Double Digit SavingsEstimated Double Digit Savings

• Modern Labour Work Rules•• Work Rules to Match TechnologyWork Rules to Match Technology•• Estimated Double Digit SavingsEstimated Double Digit Savings

• Lowest Cost Operating Environment in North America•• Real Estate Costs Real Estate Costs •• TaxesTaxes•• LabourLabour•• ConstructionConstruction



• Security• Advanced Technology – On site US &

Canadian Customs

• On-Dock Logistic Park• Added Value, Deconsolidation,

Consolidation, FTZ

• Intermodal Excellence• Designed to Optimize CN’s IMX Strategy

• Green and Sustainable

• Security• Advanced Technology – On site US &

Canadian Customs

• On-Dock Logistic Park• Added Value, Deconsolidation,

Consolidation, FTZ

• Intermodal Excellence• Designed to Optimize CN’s IMX Strategy

• Green and Sustainable



Great LakesFeeder OpportunityShort Sea Shipping

Great LakesFeeder OpportunityShort Sea Shipping


Causeway Lock Size:


250 m Length

Causeway Lock Size:


250 m Length

Canso Causeway, Strait of Canso, Nova ScotiaCanso Causeway, Strait of Canso, Nova Scotia

Looking EastLooking East


Atlantic Maritime Trade LaneAtlantic Maritime Trade LaneIntercoastal Barge Feeder ServiceIntercoastal Barge Feeder Service

St. Lawrence Seaway RouteSt. Lawrence Seaway Route

Great Lakes Regional Water ConnectionsGreat Lakes Regional Water Connections


Great Lakes Regional Rail Corridor AccessGreat Lakes Regional Rail Corridor Access

CN & CP RouteCN & CP RouteCSX Sea level RouteCSX Sea level Route

Class 1 Railroad Mainlines:Class 1 Railroad Mainlines:


Project Schedule Status Project Schedule Status • Permitting:

( Fall 2008)• Construction:

(Fall 2008)• Operational :

(Spring 2011)

•• Permitting: Permitting: ( Fall 2008)( Fall 2008)

•• Construction: Construction: (Fall 2008)(Fall 2008)

•• Operational : Operational : (Spring 2011) (Spring 2011)

Melford International Terminal Inc.

Project Schedule

Month July August September October

Dates 714

21

28 4 11

18

25 1 8

15

22

29 6 13 20

27

Design Engineering

EPC Contract

Permitting

Terminal Marketing

Logistic Park Marketing

Rail Service Agreement


Current TrendsCurrent Trends











Eye For TransportThe Impact of High Fuel Prices on the Logistics Industry Report 2008/9

America’s Top 3PLs, Shippers & Carriers share their views on how soaring fuel prices are impacting their business

Eye For TransportThe Impact of High Fuel Prices on the Logistics Industry Report 2008/9

America’s Top 3PLs, Shippers & Carriers share their views on how soaring fuel prices are impacting their business

One Conclusion

“A new trend in the logistics industry is short sea shipping. Moving freight along coasts and inland waterways is helping 3Pls, shippers and carriers cutting fuel costs and improving their green credentials”.

One Conclusion

“A new trend in the logistics industry is short sea shipping. Moving freight along coasts and inland waterways is helping 3Pls, shippers and carriers cutting fuel costs and improving their green credentials”.


Thank YouThank You

September 16, 2008 - Toledo Metropolitan Area Council of ... · •Opportunities for OhioOpportunities for Ohio’’s s intermodal network ... US Intermodal Rail ... Copyright ©

Documents