meda summer conference 2015 - port of baltimore
TRANSCRIPT
The PORT OF BALTIMOREA BUSINESS ATTRACTION
2015MPA Intermodal / Trade Development Presentation
Discussion Topics
• Port of Baltimore / Strategic Commodities / Impact
• Changing Dynamics of Container Industry
• Baltimore’s Capabilities / Positioning
• Current Services
PORT OF BALTIMORE
MPA Intermodal / Trade Development Presentation - 2015
• The Port has over 45 miles of waterfront facilities and industries.
• There are approximately three (3) dozen private facilities in the Port that handle nearly all the bulk commodities, plus shipyards, chandlers, etc.
• MPA’s six public cargo terminals handle over 90% of the general cargo.
• The Port is a complex and healthy mix of Private, Federal, State and Local agencies and facilities.
MPA is Part of a Larger Port of Baltimore Community
Private Terminals
Public (MPA) Terminals
MPA Intermodal / Trade Development Presentation - 2015
• The Port of Baltimore is a key economic engine which generates jobs and revenue for Maryland. It is responsible for:
14,630 direct jobs25,410 additional induced and indirect jobs$3.0 billion in salaries$1.7 billion in business revenues$1.0 billion in local purchases$304 million in State and Local taxes
• Among U.S. Port Districts, the POB is ranked 9th for dollar value of total foreign cargo and 13th for foreign cargo tonnage.
• #1 in the nation for Auto & RoRo, sugar, exported coal, other bulk commodities.
Economic Impacts of the Port of Baltimore
Although the POB is not a single employer, it would rank #9 (above Aberdeen Proving Ground) as a top employer in Maryland.
6
Employer Employees Product / Service1 Fort George G. Meade 41,000 Military installation/intelligence2 University System of Maryland 35,803 Higher education3 Johns Hopkins University 27,000 Higher education 4 Johns Hopkins Hospital & Health System 20,273 Hospitals; health services5 National Institutes of Health 17,842 Federal agency6 Walmart 17,715 Consumer goods7 University of Maryland Medical System 15,000 Hospitals; health services8 MedStar Health 14,867 Hospitals; health services9 Aberdeen Proving Ground 13,984 Military installation
10 Giant Food 13,403 Groceries11 U.S. Social Security Administration 13,000 Federal agency 12 Verizon Maryland 11,253 Communications services13 Naval Air Station Patuxent River 10,965 Military Installation14 Northrop Grumman 10,800 Electronics systems15 Lockheed Martin 9,245 Aerospace and electronics16 Marriott International 9,170 Food and lodging services17 Adventist HealthCare 8,572 Hospitals; health services18 National Naval Medical Center 8,108 Hospital; health services19 Andrews Naval Air Facility Washington 8,057 Military installation20 Constellation energy 7,501 Energy services
Statewide Employers in Maryland, Top 20 - 2010
Port of Baltimore(14,630 jobs)
MPA Strategic Plan
MPA is guided by our Strategic Plan developed in 1996 and revised in 2008
The plan identifies commodities that the MPA has a competitive advantage in:ContainersAutosRoll On / Roll Off EquipmentImported Forest Products (Paper and Pulp)Cruise
MPA Intermodal / Trade Development Presentation - 2015
• Facilitate maritime business through the Port of Baltimore• Promote the various stakeholders including private terminals• Educate interested parties of the various capabilities• Provide and maintain facilities to handle the needs of the industry• Act as the local sponsor to the Army Corps of Engineers for the Port’s
dredging program.
Role of the MPA
CHANGING DYNAMCISOF THE
CONTAINER INDUSTRY
2015
TEU
• Twenty-foot Equivalent Unit• Industry standard of measurement
20’ container 40’ container
Yesterday
Today
Tomorrow?
Cost Savings = Survival
• Financial instability has pushed carriers to build larger vessels in an effort to create economies of scale and lower per container costs
• New construction has outpaced demand and deployment cannot wait for Panama Canal
• Major new alliances have formed to better utilize capacity and capture cost savings
How Big is Big?
Big Then, Bigger Now
Panamax4,400 TEU
(Current Canal Size)
Post Panamax13,000 TEU
(New Canal Size)
Super Post Panamax
19,000 TEU
POB can handle 14,000 TEU vessels, only 1 of 2 such ports on the U.S. East Coast.
MAERSK14.8%
CMA-CGM8.5%
MSC13.3%
COSCO4.4%
EVERGREEN4.7%
K-LINE1.9%
YANG MING2.2%
HANJIN3.6%
HAPAG-LLOYD4.2%
APL3.6%
MOL3.1%
NYK2.6%
OOCL2.6%
HYUNDAI1.9%
CSC3.4%
CSAV1.5%
UNITED ARAB1.6%
Zim1.8%
Industry Consolidation
2014
MAERSK14.8%
MSC13.3%
COSCO4.4%
EVERGREEN4.7%
K-LINE1.9%
YANG MING2.2%
HANJIN3.6%
HAPAG-LLOYD4.2%
APL3.6%
MOL3.1%
NYK2.6%
OOCL 2.6%
HYUNDAI1.9%
CSC3.4%
CSAV1.5%
UNITED ARAB1.6%
2M Alliance
Combined Market Share = 28.1%
CMA-CGM8.5%
Zim1.8%
Industry Consolidation
2014
MAERSK14.8%
MSC13.3%
COSCO4.4%
EVERGREEN4.7%
K-LINE1.9%
YANG MING2.2%
HANJIN3.6%
HAPAG-LLOYD4.2%
APL3.6%
MOL3.1%
NYK2.6%
OOCL 2.6%
HYUNDAI1.9%
CSC3.4%
CSAV1.5%
UNITED ARAB1.6%
2M Alliance
Combined Market Share = 28.1%
CMA-CGM8.5%
O3 Alliance
Combined Market Share = 13.5%
Zim1.8%
Industry Consolidation
CSAV1.5%
2014
MAERSK14.8%
MSC13.3%
COSCO4.4%
EVERGREEN4.7%
K-LINE1.9%
YANG MING2.2%
HANJIN3.6%
CSC3.4%
UNITED ARAB1.6%
2M Alliance
Combined Market Share = 28.1%
CMA-CGM8.5%
O3 Alliance
Combined Market Share = 13.5%
Combined Market Share = 18%
G6 Alliance
Zim1.8%
HAPAG-LLOYD4.2%
APL3.6%
MOL3.1%
NYK2.6%
OOCL 2.6%
HYUNDAI1.9%
Industry Consolidation
2014
MAERSK14.8%
MSC13.3%
COSCO4.4%
EVERGREEN4.7%
K-LINE1.9%
YANG MING2.2%
HANJIN3.6%
HAPAG-LLOYD4.2%
APL3.6%
MOL3.1%
NYK2.6%
OOCL 2.6%
HYUNDAI1.9%
CSC3.4%
UNITED ARAB1.6%
2M Alliance
Combined Market Share = 28.1%
CMA-CGM8.5%
O3 Alliance
Combined Market Share = 13.5%
Combined Market Share = 18%
G6 AllianceCKYH-E Alliance
Combined Market Share = 16.8%
Zim1.8%
Industry Consolidation
2014
MAERSK14.8%
MSC13.3%
COSCO4.4%
EVERGREEN4.7%
K-LINE1.9%
YANG MING2.2%
HANJIN3.6%
CSC3.4%
Zim1.8% UNITED
ARAB1.6%
2M Alliance
Combined Market Share = 28.1%
CMA-CGM8.5%
O3 Alliance
Combined Market Share = 13.5%
Combined Market Share = 18%
CKYH-E Alliance
Combined Market Share = 16.8%
HAPAG-LLOYD4.2%
APL3.6%
MOL3.1%
NYK2.6%
OOCL 2.6%
HYUNDAI1.9%
G6 Alliance
Industry Consolidation
2015
CanalsImportance to World Trade
Panama Route Suez Route
2015
Panama Canal Expansion – 2016
294.1 m
(965’)
33.5 m (110’)
32.3 m (106’)
304.8 m
(1,000’)
12.8 m (42’)
LENGTH 366 m (1,200’)55 m (180’)
Beam49 m (160’)
427 m
(1,400’)
18.3 m (60’)
12.4 m
(39.5’)
Existing Locks Max Vessel: 4,400 TEUs
New Locks Max Vessel: 13,000 TEUs
New Locks
New Locks
Current Locks
Current Locks
15.2 m
(50’
2015
Suez Canal
• Connects Mediterranean and Red Seas.• Average transit is 12 to 16 hours.• 120 miles long, 66 feet deep.• Can handle vessels with capacity
approaching 20,000 TEUs.• In 2013, over 16,000 vessels transited the
Canal, generating in excess of $5 Billion USD in tolls.
• “New Suez” Canal began construction in August 2014 and projected to cost $8.4 Billion USD. It will increase draft to 90’ and allow for two-way vessel traffic. Estimated completion date is 1 to 3 years.
CAPABILITIES&
POSITIONING
Seagirt Marine Terminal
Current Throughput: 703,000 TEUExisting Capacity: 1,200,000 TEUFuture Capacity: 1,500,000 TEU
On-dock rail
CSX
Seagirt Marine Terminal Capabilities
50 foot channel existing with 50 foot berth, additional dredging supported by Tiger Grant to aide navigation.
Four (4) super post panamax cranes with a reach of 22 containers across, seven (7) post panamax cranes with a reach of 18 containers across.
Seven (7) vessel start times: 7:00am, 8:00am, 10:00am, 1:00pm, 3:00pm, 7:00pm and midnight.
Averaging 2,600 gate moves per day. On-dock chassis pools operated by Metro Pool (Trac) and DCLI. Off-dock
operated by Flexi-Van. Improvements planned to facilitate movement of containers to/from ICTF
facility located on Seagirt Marine Terminal. Port of Baltimore does not have any air draft limitations, water limitations,
or terminal congestion associated with other ports. Port of Baltimore is capable of handling ships as large as 14,000 TEUs today!
185’
50’
Air & Water Draft
Air
Water
Journal of Commerce2014 Port Productivity Rankings
Methodology & inputs: Utilizes 7 key data points Over 125,000 global ship calls 483 terminals 771 ports
Definition: Berth productivity – average gross moves per hour divided by the total time
vessel is alongside (actual arrival & departure times of ship at berth)
* Annual Special Report from the JOC – 6/09/15 *
Baltimore is the only U.S. port ranked at the top of all 3 major categories
Journal of Commerce2014 Port Productivity Rankings
Journal of Commerce2014 Port Productivity Rankings
Journal of Commerce2014 Port Productivity Rankings
Baltimore Cargo Continues to Flow
Unresolved Congestion at East Coast Ports
MPA Intermodal / Trade Development Presentation 2015
Baltimore Cargo Continues to Flow
Unresolved Congestion at West Coast Ports
MPA Intermodal / Trade Development Presentation 2015
Congestion in NY / NJ ongoing
Marketplace audio and picturehttp://
www.marketplace.org/topics/sustainability/weak-link-state-infrastructure/trucks-wait-port-little-room-grow
MPA Intermodal / Trade Development Presentation
$136kYear
$11k Year
To move the same amount of freight through New York, you would need…
$125k Year $61k
Year
*5 Trucks On A Weekly Regular Run from Baltimore*
To spend this much more per yearTo spend this much more per load
$3k Year$173k
Year
$13k Year
To/From Diff YearlyPenns Grove $155 $40,300Philadelphia -$14 -$3,640Harrisburg $233 $60,580Pittsburgh $481 $125,060Aberdeen $525 $136,500Frederick $665 $172,900Cleveland -$44 -$11,440Allenton $-104 -$27,040Hazleton $47 $12,220
* Rates shown do not include fuel surcharge of ~30%
Geographic Advantage – Cost
2015 Enhancements
Install reefer racks
Trucker RFID Tags for real-time visibility
Increase inbound lanes by 60% and install weigh-in-motion scales
Increase RTG equipment by 33%
2015 Productivity Enhancements
Broening Highway
Current Seagirt Truck Gate
Seagirt
• Reconstruction with 18 inch depth concrete
• Scheduled completion Q3
2015MPA Intermodal / Trade Development Presentation
Current Class I Services
Infrastructure challenges must be overcome to provide double-stack service
MDOT formulating incentive options to mirror double-stack rail service with projected 2015 launch
8 Track ICTF on dock at Seagirt National Gateway has brought
new efficiencies and origin/destination locations
Short dray to Bay View Yard Utilizes Bal Piers Program
Rail Options and Growth
CONNECTING TO THE WORLD
POB All Water Direct Services
Line Geographic Area
Evergreen, MSC, Maersk Far East
MSC, Maersk, Nordana Mediterranean
MSC / Maersk / ACL / Hapag Lloyd / CMA-CGM North Europe
CSAV / Hapag Lloyd / CCNI / Hamburg SudMSC
West Coast South AmericaEast Coast South America
MSC / SafMarine South Africa
Bahri, Nordana Middle East
Grimaldi West Africa
Reasons To UseThe Port of Baltimore
BCOs can have confidence building supply chains through Baltimore
50 foot channel & 50 foot berth Time = $$$: Unmatched vessel and gate productivity vs. competing ports. Four (4) container berths, eleven (11) cranes including Super Post- Panamax Currently receiving vessels 2X size of Panama Canal – 2M Asian Service. Robust improvements underway to keep ahead of demand. Panama Canal expansion will offer even more ocean carrier options. Environmental leader in DMCF, air emissions, ballast water testing, education Port of Baltimore does not have any air draft limitations, water limitations, or
terminal congestion associated with other ports. Port of Baltimore is capable of handling ships as large as 14,000 TEUs today!
