Alabama State Port Authority

Troy University’s Center for Water Resource Economics

Water Resource Management and Economics Conference

October 22-24, 2014

www.asdd.com

Port Overview

Port of Mobile

Excellent Transportation Infrastructure

I-10 & I-65

5 Class 1 Railroads (AGR-BNSF, CN, CSX, KCS, NS)

4 Day Rail Ferry Service to/from Mexico

Air Cargo (Brookley Complex)

Foreign Trade Zone

Full Service Seaport – 12th Largest in the Nation*

Favorable Labor Environment

Channel Depth Currently Handles Post-Panamax Vessels

Incremental Growth Projected from Panama Canal Expansion

* USACE Waterborne Commerce Center 2011/2012

The Port Authority’s Economic Impact

Alabama State Port Authority Generates:

127,591 Jobs (direct, indirect, induced and related user jobs)

$506+ million in direct and indirect tax impact

Total Economic Value $18.7 Billion

Martin Associates – October 2012

Economic Value Statewide of Marine Cargo & Vessel Activity

Northern Region of Alabama PILGRIM’S GREAT SOUTHERN INTERNATIONAL PAPER MARSHALL DURBIN NUCOR SOLUTIA/EASTMAN TYSON FOODS VULCAN MATERIALS WAYNE FARMS WEYERHAEUSER

Central Region of Alabama ACIPCO ALABAMA POWER DRUMMOND GEORGIA PACIFIC HONDA KIA SUPPLIERS KRONOSPAN MERCEDES BENZ WALTER ENERGY NUCOR O’NEAL STEEL US PIPE

Southern Region of Alabama AM / NS CALVERT AKER SOLUTIONS APM TERMINALS BERG / EUROPIPE DUPONT EVONIK GEORGIA PACIFIC GULF SOUTH LUMBER HYUNDAI HYSCO INEOS MASLAND MITSUBISHI OUTOKUMPU POSCO ROCK TENN STANDARD FURNITURE

SERVING ALABAMA INDUSTRY

Listing Represents a Sampling of ASPA Customers by Region

Lower Harbor – 45 ft. Draft

Serving Larger Post Panamax Ships

Containers / Steel / Coal

Upper Harbor – 40 ft. Draft

Serving Panamax Ships

Metals / Forest Products

Frozen Poultry / Grain / Coal /

Petroleum/ Petroleum Products

Intermodal Investments

Container Terminal /ICTF / Logistics

5 National Railroads

3 Short Line Railroads

Interstates / I-65 & I-10

Inland Waterways Via

Tennessee-Tombigbee

Intracoastal Waterway / Gulf of Mexico

Trucking (6 hour Increments)

Interstates & Four

Lane Highways in

Alabama Have

Efficient Connections

to Port of Mobile

Alabama Home to

1,025 Full Service

Trucking Companies

Mobile

Nashville

The Port’s Rail Network Rail Network Serves all of North America

Alabama Connects

via Rail to All of

North America

Port Served by 5

Class 1 Railroads,

Rail Ferry Service to

Mexico

Port Owned and

Operated Short Line

Servicing All Carriers

Inland

Waterways

50

50

TENNESSEE

MISSISSIPPI

ALABAMA

Tennessee River

Tennessee-Tombigbee

Warrior-Tombigbee

Gulf Intracoastal Waterway

Port of Mobile Provides Access

to Nearly 15,000 Miles of

Inland Waterways Serving Great

Lakes, Ohio, Upper Miss. and

Tennessee Valley Ports

General Cargo Terminals

Over 2.4 Million Sq. Ft. of Open Storage & 2.4 Million Sq. Ft. of Modern Warehouses

40 Ft. Draft Terminals

On Dock Rail - TASD

Pig Iron Pad

Heavy Lift Terminals

Unencumbered Interstate Highway Access

Access to 15,000+ Miles of Inland Waterways

Liner Service to European, Asian, Caribbean, & South American Ports

Steel / Metals

London Metals

Exchange Port

Dramatic Growth

in Iron/Steel

Products

Grain – Cement – Pig Iron

Pier D Terminals

Import Cement Operated by Argos

Grain Elevator Operated by Agrex (Mitsubishi), Offering 80+ Million Bushel Capacity Annually

Pig Iron Yard Operated by CSA

Equipment

Pinto Terminal - Steel

$110 Million Invested

Annual Throughput Capacity of 5 Million Tons.

Current Customer Moves Steel Volumes via Waterway Only

Three Wide-span Gantry Cranes/Fully Automated

McDuffie Coal Terminal

$120 Million Invested Net Gain: Increased Annual

Throughput and Better Service 3 Ship Berths; 45 ft. Draft; Rail;

Barge New Reclaim Hoppers,

Stacker/Reclaimers, Expanded Barge Loading/Unloading Capacity, Rail Loop, New Electronics/Software

Export Alabama Metallurgical Coal

Serves Steel Markets Worldwide

ASPA’s Choctaw Point Complex

APM Terminals Mobile

Future Intermodal Container

Transfer Facility

Future Logistics Park

50

50

Mobile Container Terminal

Intermodal Container

Transfer Facility

50

2 Post-Panamax Cranes (4 More

Planned)

2,000 Feet of Berth at 45-Foot Draft

Weekly Carrier Service on Major Trade

Lanes

APM Terminals Mobile

Intermodal Container

Transfer Facility

80 - acre Facility

10,800 Linear Feet of Working

Tracks

12,000 Linear Feet of Support

Tracks

Rail Bridge

A Run-around Track Handling Three

Unit Trains per Day

Adjacent Paved and Lighted

Staging Areas

Dedicated Vehicle Flyover Bridge

Connecting to the Marine Terminal

200,000 TEU Annual Throughput

Capacity at Full Build-out

Phase I Construction Underway –

Complete Late 2015

Serves U.S.

Import/Export/Domestic Markets

ICTF Phase I & II

Panama Canal Expansion -- 2015

New Locks – Panama Canal

Dimensions of Locks and Vessels

Ships that will be able

to transit the canal are:

10 feet deeper

56 feet wider

250 feet longer

Increases maximum

size container vessel

from 5,000 TEUs to

13,000 TEUs

Containers – 34%

Dry Bulk – 25%

Liquid Bulk – 15%

Vehicle Carriers – 11%

General Cargo / Others – 7%

Refrigerated Cargo – 5%

Passengers – 3%

What Transits The Panama Canal

Cargo Shares (321 MMT)

US – Asia is the Dominant Trade Route in Terms of Transits and Volumes

Bulk Accounts for 40% of the Tonnage Transiting the Canal

Expansion of the Canal Will Allow Larger Vessels for All Cargo Types

Alabama State Port Authority Tomorrow

- Five Year Capital Program

Pier C North Rehabilitation $18M Completed

Intermodal Rail (ICTF – Phase I) $36M Under

Rail Bridge and Site Work Construction

Pier D Steel Warehouse (Phase I) $36M * Dec. 2014

Container Terminal Phase II $68M 2014-2015

Garrows Bend Logistic Park $57M 2014-2016

New Shiploader/Rail Loop Track/Yard 5 $70M Completed

@ McDuffie Coal Terminal

Intermodal Rail (ICTF – Phase II) $44M 2015-2018

Truck/Vehicle Bridge Connector

RO-RO Terminal $65M 2014-2017

Middle Bay Port Pier/Yard $21M Project Driven

Interchange Rail Yard Expansion $5M 2015-2018

Total Cost $420M

*Private Investment

Project Cost Schedule

Alabama State Port Authority Challenges

ASPA Funding

USACE Funding

Container Carriage

Gulf Ports Transition to Serve Retail/Distribution Markets

Regulatory Environment

www.asdd.com

Alabama State Port Authority

Thank You!

Judith Adams

Vice President, Marketing

251-441-7003 / jadams@asdd.com