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

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 industry for state and local communities; promote Georgia's agricultural, industrial and natural resources; and maintain the natural quality of the environment. 2

GEORGIA PORTS AUTHORITY: MORE DEEPWATER TERMINAL OPTIONS Garden City Terminal Ocean Terminal Colonel’s Island East River Terminal / Lanier Docks Terminal Mayor’s Point Terminal 3

PORT OF SAVANNAH (GCT) THROUGHPUT 17-year Calendar Year History 8.7% CAGR* USWC Port since 2000 & USWC Congestion/ 4.4% CAGR* Suez Port Labor Unrest since 2014 Services Economic Closure Emerge 4.5 Recession +12% -2% 4.0 China +10% Enters 3.5 WTO +20% +4% +1% +2% In Millions of TEUs 1M TEU 3.0 +21% +0.5% Milestone -10% 2.5 +14% +14% 2.0 +23% +15% +9% 1.5 +21% +13% 1.0 0.5 0.0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 4 Source: GPA Marketing (loads & empties);* CAGR- Compound Annual Growth Rate

SAVANNAH: #4 AND FASTEST GROWING 10-YEAR CAGR PORT 2005 TEUs 2015 TEUs 1. LOS ANGELES 7,484,624 8,160,458 0.9% 2. LONG BEACH 6,709,818 7,192,066 0.7% 6,371,720 3. NY/NJ 4,785,318 2.9% 4. SAVANNAH 7.0% 1,901,506 3,737,425 5. SEA/TAC 3,289,279 2,760,811 -1.7% 6. VIRGINIA 1,981,955 2,549,270 2.5% 7. OAKLAND 2,273,990 2,277,515 0.0% 8. HOUSTON 1,582,081 2,130,544 3.0% 9. CHARLESTON 1,984,887 1,973,202 -0.1% 10. PT. EV 1,056,524 2.6% 814,745 TOP TEN TOTAL 32,808,203 38,209,535 1.5% 5 Source: AAPA; throughput excluding domestic

NY/NJ 34 9 PHIL SAVANNAH: BAL 8 NFK 31 A GLOBAL COMMERCE HUB 34 WEEKLY SERVICES COVERING THE WIL 4 WORLD CHA 25 Key Savannah Service Features: SAVANNAH 34 • Offers 6 Services via Panama JAX 8 • Offers 9 Services via Suez • First in = 8; Last out = 12 (All Trades) PEV 22 MIA 16 6 Source: American Shipper BlueWater Reporting & Carrier Websites November 22, 2016

Gate Fluidity 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 7 Source: GPA Gate Operations, Average moves/turn times for January-December 2016 Monday-Friday

Garden City Terminal Data SIO, US Navy, NGA, GEBCO 2015 TerraMetrics SAVANNAH NEAR PORT MAJOR CUSTOMERS • Near Port Total Warehouse Space = 47.96 million ft 2 (4.5 million m 2 ) • Near Port Total Bulk Warehouse Space (over 100K ft 2 / 9,300 m 2 ) = 30.4 million ft 2 (2.8 million m 2 ) 8

Georgia Named #1 State for Business * 4 Years in a Row *SOURCE: (SITE SELECTION: 2016, 2015, 2014, 2013)

Chatham ICTF served by CSX Transportation Mason ICTF served by Norfolk Southern Railroad GARDEN CITY TERMINAL TODAY LARGEST SINGLE TERMINAL IN NORTH AMERICA • • 9 Container berths 26 Container cranes • • 9,693 ft (2,955 m) of contiguous 146 Rubber-tired gantries • berthing space 1,200 acres (485.6 ha) terminal area 10

SAVANNAH HARBOR EXPANSION PROJECT (SHEP) UPDATE • 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 11

STAYING AHEAD OF THE GROWTH CURVE We Strive to Keep Capacity Well Ahead of Demand through Long-term Planning 7,000 6,000 In Thousands of TEUs 5,000 4,000 3,000 2,000 1,000 0 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Past Demand CY 2016 Throughput 3.64 million TEUs Current Demand CY 2026 Throughput Capacity Future Demand 6.5 million TEUs Capacity 12 Source: GPA Marketing (loads & empties)

NO OTHER PORT CAN DELIVER THE ‘SAVANNAH MODEL’. Summarizing Garden City Terminal’s Advantages… • GPA is owner & operator = Flexibility • Single-terminal design = Transportation Synergies 4 th 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 13

U.S. RENEWABLE ENERGY SUPPLY Quadrillion British thermal units (Btu) Source: U.S. Energy Information Administration; Short-Term Energy Outlook, February 2017 14

SAVANNAH / BRUNSWICK: #1 FUEL WOOD, CHIPS, PELLETS, SCRAP, ETC. EXPORTS Vessel Exports of HS 4401 during CY2016 by U.S. Port Brunswick, GA Other 4% Port Arthur, TX 13% 5% Norfolk, VA Mobile, AL 20% 7% Baton Rouge, LA 7% Panama City, FL 9% Coos Bay, OR 19% Savannah, GA 16% Source: U.S. Census Bureau: Economic Indicators Division USA Trade Online- Total Vessel Weight; 15 Harmonized Commodity 4401- Fuel Wood in Logs, etc, Wood in Chips, etc.

FUEL WOOD, CHIPS, PELLETS, SCRAP, ETC. EXPORTS HAVE GROWN 67% SINCE 2012 Vessel Exports of HS 4401 during CY2012-CY2016 9,000 8,000 Thousands of Short Tons 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2012 2013 2014 2015 2016 Non-Container Container • Predominantly non-container • Driven by growth of wood pellets Source: U.S. Census Bureau: Economic Indicators Division USA Trade Online- Total Vessel Weight; 16 Harmonized Commodity 4401- Fuel Wood in Logs, etc, Wood in Chips, etc.

SAVANNAH / BRUNSWICK: #2 WOOD PELLETS Vessel Exports of HS 440131 during CY2016 by U.S. Port Port Arthur, TX Brunswick, GA Mobile, AL 8% 7% Pascagoula, MS 9% 1% Other Baton Rouge, LA 12% 0% Norfolk, VA 30% Panama City, FL 15% Savannah, GA 18% Source: U.S. Census Bureau: Economic Indicators Division USA Trade Online- Total Vessel Weight; 17 Harmonized Commodity 440131- Wood Pellets

EXPORTS OF WOOD PELLETS HAVE GROWN 152% SINCE 2012 Vessel Exports of HS 440131 during CY2012-CY2016 6,000 5,000 Thousands of Short Tons 4,000 3,000 2,000 1,000 0 2012 2013 2014 2015 2016 Non-Container Container • 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. Source: U.S. Census Bureau: Economic Indicators Division USA Trade Online- Total Vessel Weight; 18 Harmonized Commodity 440131- Wood Pellets

EAST RIVER TERMINAL & LANIER DOCKS • • Dedicated Breakbulk & Dry Bulk Terminal Area: 66 acres (27 ha) • Facility Berthing: 1,600 ft (488 m) Warehousing: 428,500 ft 2 (39,809 m 2 ) • • GPA Owned & Operated by Logistec 19

BIOMASS IN BRUNSWICK Wood Pellet Markets

EAST RIVER TERMINAL  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 • 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  Modernized bulk load-out system, construction of a new ship loader, and upgraded conveyor systems

PELLET MARKET CONDITIONS  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)

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 25

APPLING COUNTY PELLETS, LLC- BAXLEY, GA • Wholly owned subsidiary of Fram Renewable Fuels, LLC • Started in 2007 26

APPLING COUNTY PELLETS, LLC- BAXLEY, GA • Production of wood pellets increased from 130K MT to 230K MT in 2012 27

APPLING COUNTY PELLETS, LLC- BAXLEY, GA 28

TELFAIR FOREST PRODUCTS, LLC- LUMBER CITY, GA • Started in 2006 • Produces a premium bedding products named “Pine Flakes” • Expanded wood pellet plant in partnership with Fram 29

TELFAIR FOREST PRODUCTS, LLC- LUMBER CITY, GA 30