www.centerpoint-prop.com

Overview Comments

Port of Virginia

July 22, 2013

www.centerpoint-prop.com

WHY IS THE PORT OF VIRGINIA IMPORTANT

»343,000 jobs, or 9 percent of the state’s workforce

»$13.5 billion of employee compensation, or 7.4 percent of the total compensation paid to private sector, state and local government employees

»$1.2 billion of income, sales, and real property taxes

»$41.1 billion in economic activity state wide

www.centerpoint-prop.com

WHERE IS THE ECONOMIC ACTIVITY WITHIN THE STATE

www.centerpoint-prop.com

FULL FISCAL YEAR: JULY - JUNE

www.centerpoint-prop.com

US EAST COAST PORTS FISCAL YEAR GROWTH

Port of Virginia New York/ New Jersey

Savannah Charleston Jacksonville Baltimore Wilmington NC

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%10.5%

-1.5% -1.5%

9.4%

3.1%

7.7%

-1.8%

Total TEUs, FY 2013 vs. 2012, Jul-Jun

US East Coast Growth: 2.5%

www.centerpoint-prop.com

VIRGINIA – POSITIONED IN MAJOR TRADE LANES

» Rapidly growing containerized freight transit

О Benefit from long-haul rail efficiency

О Efficient transfer of containers from port-rail-truck

» Significant population density

» Access to interstate highway system

» Import / export balance

» Access to competitive rail

www.centerpoint-prop.com

CONNECTIVITY: VIRGINIA TO THE HEARTLAND

» Hampton Roads is linked to the Midwest industrial base via Norfolk Southern and CSX

www.centerpoint-prop.com

LOGISTICS COST BREAKDOWN

Transporta-tion

Inventory Labor Customer Service

Rent Admin Supplies Other0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

50.3%

21.8%

9.5% 7.8%4.3%

2.7% 2.2%1.2%

LOGISTICS COST BREAKDOWN

SOURCE: ESTABLISH, INC/HERBERT W. DAVIS AND COMPANY 2006 DATABASE

www.centerpoint-prop.com

HAMPTON ROADS: STRENGTHS

» Deep water port, natural harbor, no air draft restrictions

» Can accommodate super post-Panamax vessels

О Panama Canal Expansion (2015 - 2016)

» Expansion capacity

О APMT/VIT venture

О Marine Terminal at Craney Island

» Competitive Class I railroad service

О Norfolk Southern Railroad

О CSX Railroad

» Strength of maritime community

www.centerpoint-prop.com

HAMPTON ROADS: CHALLENGES

» Capital funding for “off-port” regional transportation improvements

» ± 90 million SF local industrial market…growth required

» ± 1 million person local demographic…growth required

» I-95 & I-81 accessibility…direct route required

» Growth in port volumes = economic growth for the state