Transcript of Session 1: The Coming Resin Boom in the Gulf Coast Moderator:Curtis D. Spencer, President, IMS...
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- Session 1: The Coming Resin Boom in the Gulf Coast
Moderator:Curtis D. Spencer, President, IMS Worldwide, Inc.
SPEAKERS:Gary Furneaux, ExxonMobil, Baytown, Texas Frank
Vingerhoets, President KTN Americas
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- Table of Contents How much Resin are we talking about? What
transportation infrastructure is needed in order to manage this
Resin Boom? How are the packagers, truckers and others situated to
process this much Resin? What will the impact be on Harris County?
www.imsw.com Foreign Trade Zone, Logistics and Supply Chain
Consulting
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- How Much Resin? 22 Billion Lbs/Yr MORE Than we produce today.
30% will be Exported- SO- Just for Exports. That is 107,300 more
Resin Rail-Cars That is 23,800 more SIT storage spaces in Greater
Harris County That is 400,000 more container loads/year Packaged in
40 Million More Feet of Warehouses. Equals Huge Boom for Harris
County! www.imsw.com Foreign Trade Zone, Logistics and Supply Chain
Consulting
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- ProprietarySlide 6 Managing the Challenges of Accelerated
Growth Gary Furneaux, ExxonMobil Baytown Texas Harris County
International Trade & Transportation Conference October 23,
2014
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- ProprietarySlide 7 Gulf Coast Growth Shale Gas Boom = Feedstock
= Resin Production Gulf Coast Growth - New Stream Crackers - New
Reactors - De-bottleneck projects ExxonMobil - Current Gulf Coast
exports = ~300kTa - North American Growth Project = 1300kTa * 1 X
Steam Cracker * 2 X Polyethylene Reactors - Proposed 1 X
Polyethylene Reactor = 650kTa Potential growth from 300kTa to
2250kTa Potential growth from 50 to 360 trucks per day
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- ProprietarySlide 8 Growth Challenges - Rail Current Operations
- Load Hopper railcars for storage / transportation - Rail to
Houston area packaging facilities or NA customers Growth Challenges
- Houston rail congestion - Storage track availability
Opportunities - Operational opportunities with Railroads * 7 day a
week switching * Communication with RRs / forecasting to packagers
- 286k capable track - RR storage track (SIT) or on-site track
(loads & empties) - Packaging company rail track - Packaging
on-site or adjacent property
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- ProprietarySlide 9 Growth Challenges Packaging / Storage
Current Operations - Railcars offloaded to packaging lines /
Seabulk loading - Temporary storage prior to container loading -
Drayage to Port / Railheads for export Growth Challenges -
Packaging capacity - Rail infrastructure - More storage
requirements / slower throughput Opportunities - Communicate growth
plans with packaging companies - Commitment agreements versus
enabling agreements - Accurate volume forecasts - Operational
opportunities with Railroads - High-speed packaging equipment -
Rail infrastructure matches capacity increases
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- ProprietarySlide 10 Growth Challenges Trucking Current
Operations - 20 and 40 containers drayed to PoH and Railheads -
Container Yards / Trailer Transfers often utilized - Port Hours 5
days a week / 0700-1700 - Railroad Intermodal ramps open ~24 / 7 -
Road weight limits 84k lbs.(w/ permit) Growth Challenges -
Infrastructure - Traffic congestion - Truck / Chassis availability
- Driver availability - Safety
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- ProprietarySlide 11 Growth Challenges Trucking Opportunities -
Support infrastructure improvement projects - Safely Increase truck
weight limits - Commitment agreements vs enabling agreements -
Accurate volume forecasts - Resin producer / packager - truck
related infrastructure (container yard / staging yard, etc.) -
Dedicated drayage truck fleets / operations - Orderly transition of
chassis ownership - Dedicated trucking operations / standard driver
hrs. - Driver safety standards - Transportation Management
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- ProprietarySlide 12 Growth Challenges - Port Current Operations
- Barbours Cut / Bayport container terminals - 2013: ~ 2M TEUs -
2013: Plastics largest export by tonnage / $ value - ~ balanced
container availability Growth Challenges - Export growth - Panama
Canal Growth - Infrastructure challenges: port depth / turning
basin Opportunities - Expand port operating hours (CBP) - Shippers
commit volumes to off-hours - Shippers communicate growth plans -
Operational efficiencies
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- ProprietarySlide 13 Growth Challenges Marine Dry Cargo Current
Operations - All major shipping lines serve Port of Houston -
Intermodal to LA / LB Growth Challenges - Container availability -
Panama Canal implications Opportunities - Longer-term MDC
agreements - Commitment agreements versus enabling agreements -
Monitor allocation agreements - Accurate volume forecasts -
Communication with SSL equipment managers - Reposition containers
(Dallas / MX / East Coast strings) - Freight Forwarder serves to
coordinate multiple parties
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- New Manufacturing in Harris County RESIN BOOM ! Frank
Vingerhoets, President KTN Americas October 23 rd 2014
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- Key Data Covered warehouse capacity 60,000,000 ft Logistics
platforms 150 Countries 28 Employees 11,000 Revenue $1.4 billion
Headquarters Antwerp, Belgium Structure Privately owned company
Number of silos 3,100
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- Worldwide Locations
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- North America
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- Houston Locations FUTURE Current
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- KTN HOUSTON POLYMERS TERMINAL, Houston TX
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- 20 ETHYLENE PROJECTS 10 new gas crackers have announced:
Chevron Phillips (Cedar Bayou), ExxonMobil (Baytown), Dow
(Freeport), Formosa (Point Comfort & Louisiana), OxyChem
(Ingleside), Axiall (Louisiana), Sasol (Lake Charles), Shell
(Monaca) and Odebrecht (Parkersville, WV).
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- Project CCLT Master plan Site is connected to Union Pacific and
BNSF: High capacity yard of 2,000 cars Large inbound and outbound
tracks for flexibility to receive large block trains Easy access to
major road connections (Grand Parkway 99, I- 10, 146) Close
proximity to Barbours Cut and Bayport Container Terminals Heavy
Haul to Cedar Bayou Barge Terminal Foreign Trade Zone Facility
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- Project CCLT Master plan 22
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- Project CCLT Artist Impression 23
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- Project CCLT Phase I 24 500,000 sqft warehousing + supporting
buildings (office, maintenance): Large civil infrastructure:
Entrance road Massive drainage and detention structure to support
master plan development Rail development: Connection UP & BNSF
per approved design Rail tracks to building + bulk unloading tracks
150 HC spots yard + lead and run-around tracks
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- Project CCLT Phase I 25
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- Project CCLT Phase I 26
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- 27 Thank You for your attention !!!
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