2006 Footwear Conf

Footwear Traffic & Distribution Conference: 

Footwear Traffic & Distribution Conference Presented by: Tom Capozzi Senior Managing Director of Marketing Virginia Port Authority May 7-10, 2006

Agenda : 

Agenda Introduction to the Port of Virginia Volume Recap & Market Development Current Facilities Overview New Terminal Development APM/Maersk Terminal Craney Island Marine Terminal Regional Transportation Initiatives Heartland Corridor Channel Deepening

The Port of Virginia: 

Centrally located on the east coast Served by more than 45 steamship lines Deepest channels of any U.S. East Coast Port World-class shipping facilities, capable of handling large volumes of nearly every type of cargo Services by Norfolk Southern and CSX railroads The Port of Virginia

Calendar YTD PerformanceJanuary - December 2005: 

CY04 CY05 %Increase TEUS 1,808,933 1,981,955 +9.6% Ship Calls 2,104 2,178 +3.5% *Unit of measurement: Tons Source: Terminal Statistics Jan – Dec 2005 Calendar YTD Performance January - December 2005

Calendar YTD PerformanceJanuary - December 2005: 

CY04 CY05 %Increase Calendar YTD Performance January - December 2005 Unit of measurement: TEUs Source: Terminal Statistics Jan – Dec 2005 +25.6% Midwest Train VIP 324,774 408,015 51,122 64,197 +25.6% Rail Increase accounts for 42% of Port’s growth in CY2005

Port of VA Performance/Forecast: 

*9% Annual Growth 2005 – 2007* Port of VA Performance/Forecast 1.44M 1.65M 1.81M 1.98M 2.15M 2.34M

Slide7: 

Volume Increase - Northeast Asia Source: PIERS (Calendar Year) Northeast Asia Import Growth 102,999 149,823 199,856 266,308 434,670

Direct Asia Services atThe Port of Virginia: 

Direct Asia Services at The Port of Virginia Transit Times are estimated, please contact carrier to confirm service details and availability. Updated 4/21/06

The Port of Virginia Containerized Trade: 

The Port of Virginia Containerized Trade By Region 2.6% 30.9% 6.1% 0.3% 1.2% 28.4% 6.2% 10.4% 4.0% 0.1% 1% 8.7%

Intermodal Gateway: 

The 1.98 Million TEUs exported/imported from the Port of Virginia in 2005 were transported to inland markets using: Barges (10%) Rail (24%) Trucks (66%) Intermodal Gateway Source of Distribution of Traffic= Profiles

Slide11: 

Distribution Centers Over 80 Distribution Centers located in VA

Slide12: 

Current Speculative Warehousing Projects Updated 1/09/06

Major Economic Development: 

Major Economic Development Wal*Mart Expansion – James City County Cost Plus Expansion – Isle of Wight County SYSCO Corp. new distribution center (DC) – Rockingham County NYK Logistics - Hampton, VA Target Expansion – Suffolk, VA

The Virginia Inland Port: 

The Virginia Inland Port Economic Engine for the Commonwealth Opened in 1989 24 Major Companies have Located Near VIP Investment of Over $599 Million Over 6 Million SF of Buildings Employment of Over 7,000 The Virginia Inland Port

Major Companies Located Near VIP: 

Major Companies Located Near VIP AB&C Group AmeriCold Logistics Blue Ridge (HBH) Prestain Butter-Krust Baking Co. DuPont East Coast Brokers Inc. Family Dollar Inc. Ferguson Enterprises Inc. Ford Motor Co. General Parts Inc. Home Depot HP Hood Inc. Jouan/Precision Scientific Kohl’s Corp. Pen Tab Rite Aid Corp. Rubbermaid Spahr Metric Inc. SYSCO Corp. Toray Plastics Trex Walden Foods Winchester Cold Storage World Wide Automotive

Slide16: 

Intermodal Network Heartland Corridor VIP dedicated Train Service 33 NS Terminals 19 Private / Port Terminals 8,300 Route Miles

Slide17: 

CSXI Virginia Service Including Virginia International Terminal and Portsmouth Piers Single Stack Service

VPA Locations: 

VPA Locations

Slide19: 

Secure Terminals Lowest pilferage rate on the U.S. East Coast One of the few U.S. Customs ports that uses computerized, truck mounted gamma-ray machine (VACIS) to check containers density Portal scans containers, checking for radiation, as they enter or leave the terminal

Internet Tools: 

Internet Tools The latest on-line tracking system created by VIT has real-time cargo information. Also just created is the Shipline Services Guide which provides customers with the latest services at each terminal. www.vit.org

Slide21: 

The goal of the HRCPII is to: Decrease chassis amounts on the terminals to relieve congestion Standardize and improve the quality of the chassis Reduces turn times Lower cost Creates a “gray” chassis fleet at all VPA owned facilities Hampton Roads Chassis Pool II (HRCPII) Joe Ruddy General Manager – HRCPII (757) 440-2892 jruddy@hrcp2.org

Norfolk International Terminals: 

Norfolk International Terminals HRSD USN FFS Hampton Blvd Railroad Ave Gate Complex Pier 3 Terminal Blvd Pier 2 Pier 1 South WharfRenovation Complete Demolition of Warehouses 6, 7 & 8 Backlands RenovationPhase II, Stage 1 Complete 48 Acres Backlands RenovationAll Stages Demolition of Remainder of Warehouses 4 & 5 Backlands RenovationPhase II, Stage 2 Underway 25 Acres Rail Planning NIT North Yard Expansion NIT North Wharf Extension

NIT South Wharf: 

NIT South Wharf

NIT South BacklandsPhase II, Stage 1: 

NIT South Backlands Phase II, Stage 1

Portsmouth Marine Terminal: 

Portsmouth Marine Terminal Gate Complex Rte. 58 PMT Portsmouth CSX Yard APM/Maersk (Leased) Mid-Town Tunnel APM/Maersk Terminal (Leased) ZPMC Cranes Kone Cranes

Newport News Marine Terminal: 

Newport News Marine Terminal Gate Complex Pier B Pier C I-664 Coal Yard Newport News NNMT Turning Dolphin Relocated PMT Crane Possible Warehouse Location

Virginia Inland Port: 

Virginia Inland Port Pavement Expansion Rail Improvements

APM/Maersk Terminal: 

APM/Maersk Terminal Route 164 To Craney Island $450 Million Investment Open 2007 (Stage 1) Complete 2009 Handle 2.1 M TEUs Per Year

Craney Island: 

Craney Island Craney Island Marine Terminal is the Future of The Port At Build-Out, CIMT Will More Than Double The Port’s Capacity to over 9 million TEUs The project is in its final approval stage and is on track to open 2017

Craney IslandMarine Terminal Phase I - 2017: 

Craney Island Marine Terminal Phase I - 2017

Craney IslandBuild-Out 2032: 

Craney Island Build-Out 2032

Projected Cargo Demand & Planned Capacity: 

Projected Cargo Demand & Planned Capacity Source: VPA Master Plan. Forecast numbers prepared in 2005 and represent average increase over the forecast period. 2.0 4.0 6.0 8.0 10.0 12.0 2005 2008 2011 2014 2017 2020 2023 2026 2029 2032 2035 2038 TEUs (in Millions) Containerized Cargo Forecast (4.2% Average Growth Per Year) Planned Capacity

Regional Transportation Initiatives: 

Regional Transportation Initiatives Proposed Western Freeway Median Rail Corridor APM/Maersk Terminal Under Construction Proposed Craney Island Marine Terminal Proposed Third Crossing Route 164 I-664 Proposed I-564 Connector NIT PMT Proposed Craney Island Rail Corridor

Rail Service to Chicago: 

Rail Service to Chicago Columbus The Port of Virginia 28 Tunnels Require Modifications to Provide 20’-3” Clearance 1264 Miles to Chicago Kenova Prichard Roanoke Chicago Cleveland 1031 Miles to Chicago

Channel Deepening: 

Channel Deepening

Container Ship Evolution: 

Container Ship Evolution The Port of Virginia is the Only East Coast Port That Can Handle Any of These Ships

Slide38: 

Panama vs. Suez Transit Time and Distance Hong Kong, China Suez Canal Panama Canal Port of Virginia Via Panama Canal Distance: 11,021 nautical miles Via Suez Canal Distance: 11,705 nautical miles