2013 VA Governor’s Transportation ConferenceEd McCarthy, SVP & COOCMA CGM (America) LLC

Large ShipsCurrent Fleet as of August 1, 2013

# of Vessels TEU's % Vsls % TEU

>10,000 186 2,397,909 4% 14%

<10,000 4,789 14,590,637 96% 86%

TTL 4,975 16,988,546 100% 100%

Order book as of August 1, 2013

# of Vessels TEU's % Vsls % TEU

>10,000 111 1,582,579 24% 46%

<10,000 348 1,875,487 76% 54%

TTL 459 3,458,066 100% 100%

“You can debate their impact, but you cannot deny that they are coming!” – said by a Roman General referring to the Huns in 425 AD

That being the case, planning and preparing for them is the responsible course.

Large ShipsWho Has Them & Where?

Raise Your Hand if You Remember the phrase “Trickle Down Economics”

Most Grays Go To Here

Thank You!

CMA CGM CORTE REAL, Long Beach CAThe largest CMA CGM vessel to call North America

13,830 TEUs

Length over all 1299.21 ft

Breadth 175.85 ft

Depth to main deck 98.09 ft

Draught, scantling 52.49 ft

Air draft (after tilting) 219.81 ft

Deadweight on Ts 187,626 Ton

Lightship weight 54,400 Ton

Service Speed 24,1 knots

Main particulars

CMA CGM MARCO POLO 16000 Class of Container Ships

A Quick Size Comparison

• Ships carry 99% of overseas trade in volume terms and 62% in value terms, the remainder being conveyed by air.

• 90% of all international trade moves by sea

• Globally, the ton-miles of freight moved by water are more than twice the total ton-miles moved by road, railway, and air combined.

• Water transportation is less costly and more efficient than other modes of transport:

http://www.greatlakes-seaway.com/en/aboutus/competitiveness.html

Efficiency Comparison

Comparison of Co2 emissions between different modes of transport

Rail car with container 42

Some Hard Numbers

What can be expected operationally as ships get larger?

5100 = USEC Workhorse8500 = USEC Largest

Vessel Size 5100 TEU 8500 TEU 11,000 TEU 12,600 TEU 13,800 TEUMetricLOA (length) 294.1 334 347.5 366 365.5Design Draft 12 13 13.5 13 14Scantling Draft 13.5 15 15.5 15.5 15.5Rows Across 13 17 18 19 20Tiers On Deck 7 8 8 8 9Air Draft Titled 54.25 57 65.55 65.3 65Breadth (Width) 32.2 42.8 45.2 48.2 51.2

Vessel Size 5100 TEU 8500 TEU 11,000 TEU 12,600 TEU 13,800 TEUFeetLOA (length) 943.6 1071.6 1114.9 1174.3 1172.7Design Draft 38.5 41.7 43.3 41.7 44.9Scantling Draft 43.3 48.1 49.7 49.7 49.7Rows Across 13 17 18 19 20Tiers On Deck 7 8 8 8 9Air Draft Titled 174.1 182.9 210.3 209.5 208.5Breadth (Width) 103.3 137.3 145.0 154.6 164.3

Large Ships

Port Impact• Harbor Depth (& Air Draft)• Berths – 1300 Foot?• Cranes – Reach (20+), How Many Per Berth?

• Moves Per Hour Critical• On Dock Rail• Back of Crane Infrastructure• Gates • Intense “Peak Days”• Highways• Pilots & Tugs

Large Ships Present Two Major Challenges1 = Size of the ships2 = Highly Concentrated Volumes of Cargo

Rail Impact• Longer Trains• Flatcar Availability• Double Stack• On Dock Rail• Higher Ramp Traffic Concentration

• Origin & Destination• Dedicated Trains/Corridors

Customer Impact• Concentrated Flows = High Velocity• Potential Warehouse Stresses• Improved Schedule Reliability• Dray Power Challenges

Effectively Managing These Issues Will Result In Improved Efficiency Throughout the Supply Chain

CMA CGM AMERIGO VESPUCCI

(13,830 TEUs)

The New Panama Canal

13.000 teu Vessels will be capable of transiting the Panama Canal

Mid-Atlantic Terminals – Summer 2013 Capabilities

• Baltimore• Norfolk• Charleston• Savannah

APM - Norfolk• Capacity – 1.1M teus / 650K lifts – Occupancy

74%• 260 acres of operating space • 8 Super Post Panamax • 3,225ft of berth• RMG Operation• On Dock rail (14,400ft track)• Alongside – 55ft MLW• Channel - 50ft MLW• Turning Basin – No restrictions• Tidal Range – 2 to 3ft• Future build out = 4000ft of berth, 2 addt.

Super Post Panamax cranes, 370 acres, 2.1M Teu capacity as volumes warrant

• Capacity – 2.1M teus / 1.2M teus – Occupancy 52%

• 131 acres of operating space (Total Terminal space – 567 acres)

• 14 Super Post Panamax cranes (245ft reach / 27 across)

• 1 R0/RO berth• 6630ft of berth• Alongside – 55ft MLW• Channel – 50ft MLW• Turning Basin – No restriction• Tidal Range – 2 to 3 ft• Straddle Operation (Container yard) &

Reach Stackers (Intermodal Yard)• On dock rail NS / CSX off dock (100,000ft)• Future = Expansion of acreage and order

of new Super Post Panamax cranes as volumes warrant

NIT- NorfolkSEAGIRT Baltimore• Capacity – 1.2M teus / 705K lifts -

occupancy 43%• 284 acres of operating space• 7 Post Panamax cranes / 4 Super Post

Panamax• RTG / Top Loader Operation• 3127ft of berth• On dock rail CSX / Near Dock NS• Channel – 50ft MLW• 3 Berth @ 45MLW with new Berth 4 @

50ft MLW• Air draft – 185ft MHW • Tidal Range – 1.5ft

• Turning Basin – 1350ft

SCSPA - WANDO• Capacity – 1.6M Teus / 940K lift

– Occupancy 50%• 246 acres of operating space • 12 cranes – 8 Super Post

Panamax / 4 Post Panamax • 3,800ft of berth• RTG Operation• Off Dock rail (virtual on dock

program)• Channel - 45ft MLW• Alongside – 50ft MLW• Air draft – 186ft MHW• Tidal Range – 5.5 ft• Turning Basin – 2,110ft

• Capacity – 1.2M Teus / 705K lifts – Occupancy 50%

• 201 acres of operating space• 6 cranes – 2 Super Post Panamax / 4

Post Panamax • 2,500ft of berth• RTG Operation• Off Dock rail (virtual on dock

program)• Channel – 45ft MLW • Alongside – 49ft MLW• Air draft – 155ft MHW• Tidal Range – 5.5ft • Turning Basin – 1754ft

SCSPA - NCT• Capacity – 4.2M Teus / 2.98M lifts –

71% occupancy• 850 acres of operating space (1200

acres in total)• 23 cranes - 6 Post Panamax / 12 Super

Post Panamax • Delivery of 4 new Super Post Panamax

cranes in June 2013• RTG Operation (116 in operation)• 9,700 feet of berth• On dock rail (CSX & NS)• Future Capacity – 6.5M teus / 3.6M lifts

(2022)• Investment 70 new RTG (Total build

out of 186)• Channel – 38ft MLW (w/o tide

restriction)• Alongside – 48ft MLW• Air draft – 186ft MHW• Tidal Range – 7ft • Turning Basin – 1500ft x 1600ft

GPA Savannah

As you can see….

Norfolk and Baltimore are well positioned with plenty of draft and capacity, as well as on-dock rail.

Charleston faces challenges without on-dock rail (although a virtual substitute is offered), and potential tidal sailing requirements. NCT’s shortage of super PPM cranes may be an issue as well.

Savannah has on-dock rail, but limited channel depth. However, Savannah has the advantage of major customer distribution centers directly adjacent to the terminal facility.