The Port of Virginia 2009

• Port Overview

• Terminal Overview & Improvements

• The Future of the Port

• Service through Virginia

• Economic Impact

Agenda

Port Overvie w

The Hampton Roads Harbor NIT NNMT Future CIMT PMT APM Terminals

2008 Calendar Year Statistics

• The Port of Virginia handled over 2 Million TEUs, a 2.1% decrease

• The Port of Virginia moved 475,526 rail TEUs to and from the Midwest, a 6.8% decrease

Historical Performance TEUs The Port of Virginia Historical Performance

Intermodal Gateway Source: Terminal Operator CY2008 The nearly 2.1 Million TEUs moving over the Port of Virginia in 2008 were transported by: Barges 5% Rail 31% Trucks 64%

James River Barge Service

• Commenced December 2008

• Weekly service between the Norfolk & Portsmouth Terminals and Richmond, VA

• 120 TEU capacity

• Each container moved via the Barge reduces fuel consumption by 31 gallons

Source: Piers, Loaded TEUs *India & Others include: Indian Subcontinent, Africa, Middle East, and Central America Leading Import Markets in 2008

Source: Piers, Loaded TEUs *India & Others include: Indian Subcontinent, Africa, Central America, Oceania, and Caribbean Leading Export Markets in 2008

Top Trading Partners in 2008 Source: PIERS, TEUs Import China Brazil Germany India Italy Netherlands Belgium Indonesia United Kingdom France Export China Belgium Germany United Kingdom Netherlands Japan Italy Brazil Saudi Arabia India

Top Commodities in 2008 Source: PIERS, General Cargo Short Tons Import Furniture Auto Parts Non-Alcoholic Beverages Tobacco Metalware Paper & Paperboard Natural Rubber Granite Coffee Woodenware Export Paper & Paper Board Logs & Lumber Grains & Flour Products Wood Pulp Grocery Products Tobacco Pet & Animal Feed Meat, Chiefly Fresh & Frozen Poultry, Chiefly Fresh & Frozen Unclassifiable Chemicals

Trade Balance Note: Statistics include loaded and empty containers 49:51 49:51 47:53 46:54 Containers The Port of Virginia Trade Balance

Terminal Overview and Improvements

Norfolk International Terminals

• 2008: 900-ft Extension to the North Wharf

• 2009: 150-acre renovation of the South Container Yard

NIT Central Rail Yard

• Relocated and Expanded Centralized Rail Yard

• Twelve 1,500 ft. Rail Tracks Added

• Will triple On-dock Rail Capacity to 600,000 Lifts

NIT North Wharf

Suez Class Cranes

• The Port of Virginia is home to the largest and fastest container cranes in the World.

• These Suez Class cranes have a 26 container outreach and can move containers on and off vessels with incredible speed and efficiency.

Emma Maersk

• 15,000 TEUs

• 22 containers wide

• 1,302 ft. long . . . . . . Eiffel Tower = 986 ft.

• Beam = 183.73 ft. . . . Olympic pool length = 164.04 ft.

• Draft = 50.8 ft.

• Crew = 13 people

• The Port of Virginia is the only port on the U.S. East Coast that can handle the worlds largest container ship.

Portsmouth Marine Terminals

• Direct Rail Access: connection with CSX and also Norfolk Southern via the Norfolk and Portsmouth Belt Line Railroad

Warehouse A Lydall Paper Lydall Paper RUBB Warehouse Warehouse D Newport News Marine Terminals

Newport News Marine Terminals: Top of the Line in Breakbulk Cargo

• Over 600,000 tons of breakbulk and project cargo are handled annually.

• Almost 200,000 square feet of enclosed warehouse space

• Ro/Ro berths with extra wide aprons provide easy access and maneuvering room.

• On-dock rail enables fast turnaround

Pulp & Paper Steel Ro/Ro Rubber Lumber

APM Terminals Portsmouth, VA Phase 1 completed in 2007 Total Acreage: 230 Pier Length: 3200 ft. Depth: 55 ft. Cranes: 6 Capacity: 1 Million TEUs Cost: $500 Million Phase 2 - as volume dictates Total Acreage: 291 Pier Length: 4000 ft. Cranes: 12 Capacity: 2.2 Million TEUs Cost: $250 Million - Projected

Virginia Inland Port

• The Virginia Inland Port (VIP) is located 220 miles northwest of Norfolk in Front Royal, VA, across 161 acres

• Handled over 60,000 TEUs in 2008

• On-site rail service by Norfolk Southern with five-day-a-week rail service between the VIP and the marine terminals in Hampton Roads

• Direct interstate access to I-81 and I-66

The Future

Panama Canal Expansion

• Currently, Panamax vessels (up to 4,500 TEUs) are the largest vessels that can transit the Panama Canal.

• The Panama Canal Expansion Project is scheduled to be completed in 2014, allowing larger vessels (up to 12,000 TEUs) to transit.

• The Port of Virginia is the only Port on the U.S. East Coast that can handle the new Post-Panamax vessels .

Panamax Post-Panamax Capacity 4,500 TEUs 12,000 TEUs Length 965 1,200 Draft 39.5 50 Beam 106 160

Future Craney Island Marine Terminal Phase 1 by 2020 Total Acreage: 220 Pier Length: 3000 ft. Depth: 52 ft. Cranes: 6 Capacity: 1.5M TEUs Cost: $1.2B Phase 2 June 2032 Total Acreage: 600 Pier Length: 8000 ft. Depth: 52 ft. Cranes: 15 Capacity: 5M TEUs Cost: $1.06B

Service Through Virginia

Four New Shipline Services from Asia to The Port of Virginia

• Suez Canal services :

• 1. CKYH AWE-4

• • First-in call to Norfolk

• • East coast port rotation: Norfolk, New York, Halifax

• • Yantian last port out in Asia

• • 22 day transit from Asia

• 2. CMA-CGM/Maersk Columbus Loop

• • East Coast port rotation: New York, Norfolk

• • 6,700 TEU vessels

• • Originates in China

• • Transshipment option in Morocco

• Panama Canal services:

• 3. China Shipping

• • East Coast port rotation: New York, Norfolk, Savannah

• • 4,200 TEU vessels

• 4. CKYH AWE-5

• • East Coast port rotation: New York, Norfolk, Savannah

Four New Shipline Services from Asia to The Port of Virginia

Shipline Services in the Major Tradelanes Tradelane Shipline Services Africa 1 Asia 16 Central America / Caribbean 13 Indian Subcontinent / Middle East 7 Mediterranean 10 North Europe 10 South America 4

CSX National Gateway

• Connects Norfolk to the Midwest and beyond

• Expedites traffic through Chicago and St. Louis gateways

NW Ohio Transfer Yard enables CSX service to new major markets NYNJPA Norfolk Chicago St Louis Memphis New Orleans Tampa Miami Jacksonville Atlanta Birmingham Columbus Pittsburgh CSX National Gateway CSXT double stack routes Other CSXT routes

CSXI Virginia Service Intermodal Network Includes Virginia International Terminals and Portsmouth Piers Single Stack Service CSXI New Portsmouth Midwest Import/ Export Service Points CSXI Existing Service Points No Service NY / NJ Miami New Orleans Jacksonville Detroit Baltimore Mobile Tampa Portsmouth Orlando Syracuse Charlotte Buffalo Chicago Cincinnati Charleston Savannah Memphis Kansas City E. St. Louis Cleveland Philadelphia Columbus Fort Lauderdale Evansville Indianapolis Boston (Stackbridge) Kingsport Atlanta Nashville

Intermodal Network 33 NS Terminals 19 Private / Port Terminals VIP dedicated Train Service Heartland Corridor

The Heartland Corridor

• New route will be Double-Stack and will eliminate more than 230 miles

• Expected to be Complete in 2 nd Qtr 2010

• Direct access to and from industrial parks.

• Expected to handle over 300,000 container transfers a year

• Creates reduced shipper costs, lower emissions, regional competitiveness

Rickenbacker Logistics Park Rickenbacker Intermodal Facility

Economic Impact

• 343,000 jobs , or 9 percent of the states resident 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 in local income, sales, and real property taxes

• $41.1 billion in total revenue

Source: The Fiscal Year 2006 Virginia Economic and Fiscal Impacts of Virginia Port Authority Operations, The Mason School of Business Compete Center, College of William and Mary, January 2008 The Port as an Economic Engine

Selected Distribution Centers

Virginia Inland Port

• Economic Engine for the Commonwealth

• 27 Major Companies have located near the VIP

• • Investment of Over $599 Million

• • Over 6 Million SF of Buildings

• • Employment of Over 7,000

The Virginia Inland Port HOME DEPOT INTERCHANGE OZBURN-HESSEY FORTESSA The Virginia Inland Port HOME DEPOT INTERCHANGE OZBURN-HESSEY FORTESSA

The Ports Advantages in Summary

• 50 ft. channels the deepest on the U.S. East Coast

• No obstructions between port and sea

• Gold Seal of Approval - Maersk, the worlds largest shipline, privately funded the $500 million construction of a new 300-acre terminal in Portsmouth.

• Craney Island Marine Terminal Phase 1 to open by 2020. No other port on the East Coast has land available to expand and authorization from the Army Corps of Engineers.

• The Heartland Corridor Efficient intermodal rail service between the Port of Virginia and the inland points in the Midwest such as Columbus, Ohio and Chicago.

Thank You!