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North Carolina State Ports AuthorityA Global Gateway for the Region

Ports are the Backbone of Global Trade

Approximately 90% of international cargo moves by sea.

More than 70% general cargo worldwide moves by container ship a number that is expected to grow.

Deep draft ports accommodate ocean cargo vessels which carry more than 99% of U.S. overseas trade by weight and 61% by value.

Source: U.S. Dept. of Commerce

The Relevance of Ports Why do Ports Matter?2THE IMPORTANCE OF PORTS

I would like to start off by talking a little bit about ports.

Many people dont realize the important role that ports play in our economy, both nationally and here in North Carolina.

Ports are the backbone of our international trade. Deep draft ports carry more than 99% of US overseas trade by weight and 61% by weight

Before we talk about the new international port being planned for North Carolina, Id like to give you a brief overview of the ports industry in North Carolina.

Source of Stat: U.S. Coast Guard The Relevance of PortsA modern container port is a factory whose scale strains the limits of imagination.

The Box, by Marc Levinson (Princeton University Press, 2006), page 4North Carolina PortsStrategically located to serve the South Atlantic regionWilmingtonNorfolk, VACharleston, SCSavannah, GA

Morehead City

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95700 Miles1,110 KM500 Miles800 KM300 Miles500 KMPORT OF WILMINGTON

95BostonNew York RichmondMiamiWashington, DC

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75Atlanta

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85New OrleansMobileJackson CharlotteNashvilleMemphisChicagoClevelandDetroitBuffaloSt. LouisMilwaukeeMarketAccessibility

Within 700 miles/1,110 km of North Carolinas Borders Are:

PORT OF MOREHEAD CITY170 million U.S. and Canadian consumers

65 of the countrys top 100 metropolitan areas

58.2% of total U.S. retail sales

Central East Coast location

North Carolina Population Growth

U.S. Census Bureau predicts by 2030, North Carolina will be the 7th most populous state (currently 10th).

From 2000 to 2020, North Carolinas population is expected to surge by 55%, increasing by an additional 4.4 million people, according to government projections.North Carolina Ports Mid Atlantic Position Is Ideal to Support Access to U.S./Canada Marketsand one of the Fastest Growing Regional Markets2 Day1 DayEconomic development agency for StateOperations self-fundedGateways to world markets for States business and industrySupport nearly 65,000 statewide jobs$500 million state and local tax revenuesStatewide economic impact of $7 billion

Enhancing the Economy Statewide

Investments in NC Ports is bringing in business and with it jobs, income and tax revenues.

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Port of WilmingtonCharlotte Inland TerminalPort of Morehead CityGreensboro Inland TerminalSoutheast Brunswick County Site

North Carolina Ports Facilities

SPA facilities are (upper left and across top): the Port of Wilmington, the site of the future NC International Terminal, the Port of Morehead City, (bottom left and across) the Charlotte Inland Terminal and the Greensboro Inland Terminal. The Ports Authority currently leases operations at the Greensboro facility.

THE AUTHORITY OPERATES TWO MAJOR PORTS THE PORT OF WILMINGTON (UPPER LEFT) LOCATED UP RIVER, 26 MILES FROM THE MOUTH OF THE CAPE FEAR RIVER AND THE PORT OF MOREHEAD CITY (UPPER RIGHT) LOCATED IN CARTERET COUNTY 91 MILES NORTH OF WILMINGTON.INLAND TERMINALS SERVI NG CHARLOTTE (LOWER LEFT) AND GREENSBORO (LOWER RIGHT).THE PROPOSED NORTH CAROLINA INTERNATIONAL TERMINAL TO BE LOCATED AT SOUTHPORT IN BRUNSWICK COUNTY IS PICTURED IN THE CENTER.

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Serves container, bulk and breakbulk operations 284 acres42 Navigation ChannelModern transit and warehousing facilities, four new Panamax container cranes and support equipmentLatest in cargo management technologyClosest port to major points on the I-85 / I-95 Corridors, including Charlotte, Greensboro, and Raleigh-Durham-RTPLow cost, superior serviceFast, Efficient Vessel/Truck TurnaroundCrane ProductivityGate ProductivityPort of Wilmington8Port of Morehead City

One of the deepest ports on the U.S. East Coast -45 deep vessel channel

Located just four miles from theAtlantic Ocean

Handles breakbulk and bulkcargo

The second largest volume port in the US for natural rubber

Leading exporter ofphosphate

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WarehousemenEquipment OperatorsComputer OperatorsManagersLogistics CoordinatorsTrucking firms

Pilot organizationsTug OperatorsUS Coast GuardMultiple Federal AgenciesFinancial institutionsMarine construction companiesIntl Longshoreman Assoc (ILA)Terminal operating companiesGate InspectorsSecurity Officers WarehousemenCustoms OfficersEquipment OperatorsState EmployeesOn Terminal Rail OperatorsUS Army Corps of EngineersOther governmental agencies

Steamship agentsTerminal operatorsCustomhouse brokersFreight ForwardersLogistic service providersLeasing companiesTrucking firmsRail operatorsMaintenance firms

WarehousemenEquipment OperatorsComputer OperatorsManagersLogistics Coordinators

Retail WorkersWarehousemenEquipment OperatorsComputer OperatorsManagersLogistics CoordinatorsTrucking firmsOvernight providersA Single Ocean Container Thru NCs Ports Impacts all of North Carolina

10riding the tideNC is logisticsGreensboro positioned as leader in logistics (location on I-85 corridor), central hub locationLumber companies used to supply furniture industry, also sending product to China (export in containers), jobs were once from the sawmill, now have freight forwarding and complex logistics componentsUNC system

Perhaps the biggest success story is the one told at the North Carolina ports, where new services by Maersk Line and Independent Container Line spurred a 25 percent gain in total volume good enough for the No. 25 ranking on the JOCs list.

Imports up 26% Exports up 47%

Peter T. Leach Journal of Commerce September 2010

Port of Wilmington: Biggest Success Story

Recent press release from the Journal of Commerce highlighted the NC Ports growth to the 25th top overall container port citing a 26% gain in total volume to approximately 185,000 TEU.Exports cargo increased 47% from NC due in part to the introduction of Independent Container Lines European service and Maersk Central and So. America service.

11JOC Top 20 US Container Ports - Imports

JOC Top 20 US Container Ports - ExportsNorfolk

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73$234,170,000RECENT HIGHWAY INFRASTRUCTURE INVESTMENTSOpened ! July 2007$59,670,000I-140 Wilmington Bypass (Sections 1 & 2)Improves connection from Container Terminal to I-40Opened ! January 2008$74,500,000I -73 Corridor from I- 74 to I-85 at GreensboroNew 16.8 mile Interstate Route connects I -74 to I-85Opened! September 2008$100,000,000Upgrade US 74 to Interstate Quality West of I-95 Major upgrade from Wilmington Container Terminal to I-85

Major Projects Improve Highway Transportation Access Key Attribute for Port of Wilmington

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NC Ports - Lower Logistics Cost and Green Port235 miles334 miles182 milesHigher Average Per Container HaulageTo Raleigh

NFK $177+CHS $353+SAV $408+

207 miles254 miles131 miles273 miles260 miles278 miles317 miles306 miles322 milesHigher Average Per Container Haulage To Greensboro

NFK $138+CHS $159+SAV $264+

Higher Average Per Container HaulageTo Hickory

NFK $292+CHS $15+SAV $120+

Higher Average Per Container HaulageTo Leland

NFK $564+CHS $332+SAV $610+

296 miles180 miles9 miles277 milesHigher Average Per Container HaulageTo Charlotte

NFK $433+CHS $24+SAV $127+

341 miles199 miles209 miles252 milesFocus on the expansion opportunities at its current facilities.Continue its mission to enhance the economy of North Carolina, retaining/creating jobs, investment and growth. Assess the global market requirement s and timing for expansion of existing port facilities.USACE to undertake a Feasibility Study for improvements to Wilmington Harbor Navigation Channel serving the Port of Wilmington.State to study the global market demand and need for deeper water port development and location.Achieve dedicated intermodal container/trailer rail service between the Port of Wilmington and the CSX/NS intermodal rail ramps in Charlotte. (Double-stack intermodal rail infrastructure already established.)

NC Ports Strategic Global Goals16

Thank You

Jimmy YokeleyDirector, Community Ec. Dev.NC State Ports Authorityjimmy.yokeley@ncports.comwww.ncports.comwww.OurNCPorts.com 17