North Carolina Ports North Carolina Ports ““Keep North Carolina WorkingKeep North Carolina Working””

Global Engagement CommitteeGlobal Engagement CommitteeFebruary 23, 2010February 23, 2010Glenn CarlsonGlenn CarlsonChief Commercial OfficerChief Commercial OfficerNC State Ports AuthorityNC State Ports Authority

Economic development agency for StateEconomic development agency for StateOperations selfOperations self--fundedfundedGateways to world markets for StateGateways to world markets for State’’s s business and industrybusiness and industrySupport nearly 85,000 statewide jobsSupport nearly 85,000 statewide jobs$299 million state and local tax revenues$299 million state and local tax revenuesNC International Terminal offers economic NC International Terminal offers economic prosperity for future generationsprosperity for future generations

For more information, please visit our website For more information, please visit our website www.ncports.com

Enhancing the Economy StatewideEnhancing the Economy Statewide

Port of WilmingtonPort of Wilmington

Charlotte Inland TerminalCharlotte Inland Terminal

Port of Morehead CityPort of Morehead City

Greensboro Inland TerminalGreensboro Inland TerminalNC International TerminalNC International Terminal

North Carolina State Ports Authority FacilitiesNorth Carolina State Ports Authority Facilities

Radio IslandRadio Island

NC Ports Support NC BusinessNC Ports Support NC Business

Port of Wilmington Container OperationsPort of Wilmington Container Operations

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Projected Moves

Import Loads

Export Loads

Empty

Total Moves

Wilmington’s Container Volume has Grown Significantly Following the Completion of the 42’ Channel Project and Terminal Upgrades

With the addition of two new services, Wilmington’s total container movement for Fiscal Year 2009 ended only 4% short of FY 08 – much better than the 20% overall decline in US Port Industry

In Fiscal Year 09 (July 2008-June 2009) the Port of Wilmington’s two Transpacific Services fell only 9% from FY 08Carriers took advantage of an NC Port’s recommended “Port Gateway Optimization” program

CKYH adds second string

ICL and Maersk add vessel calls

January 200442’ Channel Completed

WarehousemenEquipment OperatorsComputer OperatorsManagersLogistics CoordinatorsTrucking firms

Pilot organizationsTug OperatorsUS Coast GuardMultiple Federal Agencies

Financial institutionsMarine construction companiesInt’l 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 providers

Leasing companiesTrucking firmsRail operatorsMaintenance firms

WarehousemenEquipment OperatorsComputer OperatorsManagersLogistics Coordinators

Retail WorkersWarehousemenEquipment OperatorsComputer OperatorsManagersLogistics CoordinatorsTrucking firmsOvernight providers

One Container Box Thru One Container Box Thru NCNC’’s Ports Impacts all of s Ports Impacts all of

North CarolinaNorth Carolina

During these uncertain economic times, the Ports During these uncertain economic times, the Ports Authority continues its mission to enhance the Authority continues its mission to enhance the economy of North Carolinaeconomy of North Carolina

The Authority will proceed with the port expansion The Authority will proceed with the port expansion necessary to position the Authority for the economic necessary to position the Authority for the economic recovery and a continuation in the growth of recovery and a continuation in the growth of international tradeinternational trade

Port Infrastructure DevelopmentPort Infrastructure Development

Population demographics support an abovePopulation demographics support an above--average market average market opportunity within North Carolina and South Atlantic regionopportunity within North Carolina and South Atlantic region

Key ObservationsKey ObservationsKey Observations

Population is moving South and to the coastsEmerging mega-metropolis in the Charlotte /Atlanta / Knoxville-Memphis areaNorth Carolina will be the seventh most populous state by 2030North Carolina’s purchasing power exceeds national averages, and is forecasted to remain soNorth Carolina’s GDP growth is forecasted to exceed national averages

Population is moving Population is moving South and to the coastsSouth and to the coastsEmerging megaEmerging mega--metropolis in the metropolis in the Charlotte /Atlanta / Charlotte /Atlanta / KnoxvilleKnoxville--Memphis areaMemphis areaNorth Carolina will be North Carolina will be the seventh most the seventh most populous state by 2030populous state by 2030North CarolinaNorth Carolina’’s s purchasing power exceeds purchasing power exceeds national averages, and is national averages, and is forecasted to remain soforecasted to remain soNorth CarolinaNorth Carolina’’s GDP s GDP growth is forecasted to growth is forecasted to exceed national averagesexceed national averages

Forecasted Population Growth by Forecasted Population Growth by County (2005 County (2005 –– 2030)2030)

Source: U.S. Census Bureau

9

Port of WilmingtonPort of Wilmington

Raleigh

Greenville

Ansell

BIC Corporation

Comer Industries

Cato Corporation

Consolidated TextilesEckerd Drugs

CCP Inc.

John Deere

Black & Decker

Hyosung America

Chicago Pneumatic

Procter & GambleTyco Electronics

Deere Hitachi

Powell Co.

LaquercraftLegacy Classic

Konica Minolta

Polygol IncorporatedMasonite Door

Rooms To Go

Spencer Gifts

Stein Fibers

Verbatim

Springs Industries

Northern Tool & Equipment

Klaussner InternationalAloha HousewaresSigma Electrical Corp.

Variety WholesalersDillard’s

Royal Home Fashions

Baker Furniture

Kincaid Furniture

Century Furniture

Regency HouseRobert Abbey

Bernards Furniture

Sherill Occasional

Hickory Springs

Maitland SmithUniversal Furniture

Bernhardt Furniture

DeCoroSafelite Auto GlassQVCRoom Store

Daedong (Kioti Tractor)Standard Commercial

The Body Shop

Quick-Step (Unilin)

Whitewood IndustriesThomasville Furniture

Dell

Elmer’s Glue

BSH Home AppliancesMoen, Inc.Masterbrand Cabinets

Hallmark CardsGold Toe BrandsKidde & Company

MaidenformQuickie

TBC CorporationWoodgrain Millworks

Kelly Springfield/GoodyearWest Point Home/Hellman

Firestone Tires

Pass & Seymour Legrand

Stanley ProductsMinka Lighting

Pergo Wood Flooring

Consolidated Diesel

Burnes of Boston

Magla ProductsDetroit Diesel

Hafele

Cooper Tools

Arvin Meritor

Lowe’s (Statesville)

Electrolux

Lowe’s (Wilkesboro)Lowe’s (Stokesdale)

Lowe’s (Garysburg)

Caterpillar BCP

TerexCampbell Sales

Moulding & MillworkSue Bee Honey

Broyhill FurnitureTarget (2009)

Collezione Europa

ProgressiveAcacia Home & Garden

American Valve

K-Mart

Berco

LaneVenture

Mannington FloorsPolo-Ralph Lauren

Hanes Brands Intl.

FCC Corporation

High PointHickory - Lenoir

Charlotte

Greensboro

Carson DellosaJC Penney

Rocky Mount

Florence

Harbor Freight Tools

QVC

Lumberton/

Fayetteville/Laurinburg

Richmond County

Big Rock Sports

Liberty Hardware

Commscope

Current Distribution Centers Served by WilmingtonCurrent Distribution Centers Served by Wilmington

Capital Projects Capital Projects –– Port of WilmingtonPort of Wilmington

Container Terminal ExpansionContainer Terminal Expansion$190 million$190 million

Increase container throughput Increase container throughput capacity to 600,000 TEUcapacity to 600,000 TEU

Capital Projects Capital Projects –– Port of Morehead CityPort of Morehead City

Morehead City Morehead City New 177,000 Sq. Ft. WarehouseNew 177,000 Sq. Ft. Warehouse

Central HardstandCentral Hardstand$21 million$21 million

““AmericaAmerica’’s next great ports next great port””

North Carolina International TerminalNorth Carolina International Terminal

Jobs, investment and growth Jobs, investment and growth -- that is what Americathat is what America’’s s next great port means to the State of North Carolinanext great port means to the State of North Carolina

North Carolina International Terminal (NCIT)North Carolina International Terminal (NCIT)•• Vacant SiteVacant Site

•• Purchased by Purchased by NC Ports in April 2006NC Ports in April 2006

•• 600 Acres; 4600 LF of Berth600 Acres; 4600 LF of Berth

•• 4 Miles from Atlantic Ocean;4 Miles from Atlantic Ocean;9.5 Miles from Sea Buoy9.5 Miles from Sea Buoy

•• Site is Rail ServedSite is Rail Served

•• Planned Operating Depth 50Planned Operating Depth 50’’MLLWMLLW

•• Estimated 3 Million TEU Estimated 3 Million TEU thruput at full build outthruput at full build out

•• Anticipate 1Anticipate 1stst phase phase operational 2017operational 2017

•• Strategic to NC Military Strategic to NC Military

North Carolina International Terminal LocationNorth Carolina International Terminal Location

NC International Terminal

Port of Wilmington

I-140 & Skyway Bridge

Rail

NC 87

NC 211Progress Energy Nuclear Plant

MOTSUMilitary Ocean Terminal Sunny Point

Bald Head Island

NCIT NCIT -- Significant Statewide Economic Impact Significant Statewide Economic Impact Employment, Investment and Tax RevenuesEmployment, Investment and Tax Revenues

An estimated 16,500 new terminal-related jobs will be created; more than 477,000 jobs will be supported

An estimated $114 million in new state and local taxes will be generated annually; more than $1.2 billion annually will be supported by port activities

An estimated 16,500 new An estimated 16,500 new terminalterminal--related jobs will related jobs will be created; more than be created; more than 477,000 jobs will be 477,000 jobs will be supportedsupported

An estimated $114 million An estimated $114 million in new state and local taxes in new state and local taxes will be generated annually; will be generated annually; more than $1.2 billion more than $1.2 billion annually will be supported annually will be supported by port activitiesby port activities

Source: THE PROJECTED ECONOMIC IMPACTS OF THE NORTH CAROLINA INTERNATIONAL TERMINAL, March 2008, Martin Associates

Surface Transportation Surface Transportation Infrastructure Infrastructure

Highway and Rail Infrastructure Highway and Rail Infrastructure PrioritiesPriorities

Highway:Highway:•• II--74 Upgrade Gastonia to Wilmington including Monroe74 Upgrade Gastonia to Wilmington including Monroe

Bypass Bypass –– Interstate connectivity Charlotte to WilmingtonInterstate connectivity Charlotte to Wilmington•• Wilmington Bypass Wilmington Bypass -- II--140 and Cape Fear Skyway Bridge140 and Cape Fear Skyway Bridge•• NC International Terminal connector to INC International Terminal connector to I--140, I140, I--74 and I74 and I--4040•• US 70 Strategic Corridor including Havelock and Beaufort BypasUS 70 Strategic Corridor including Havelock and Beaufort Bypasss•• Gallant Channel BridgeGallant Channel Bridge

Rail:Rail:•• Pembroke Northern Connector Pembroke Northern Connector •• CSX to Fort Bragg ConnectorCSX to Fort Bragg Connector•• Castle Hayne to Wallace rail restorationCastle Hayne to Wallace rail restoration•• CSX National GatewayCSX National Gateway

NorfolkNorfolk

40

7440

20

95

95

95

Richmond

Washington, DC

Atlanta

85

Orleans

bile

Charlotte

Cleveland

DetroitBuffalo

ville

CharlestonCharleston

WilmingtonWilmington

SavannahSavannah

16

6481

New York

73

$234,170,000RECENT HIGHWAY INFRASTRUCTURE INVESTMENTS

Opened ! July 2007

$59,670,000I-140 Wilmington Bypass (Sections 1 & 2)Improves connection from Container Terminal to I-40

Opened ! 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-85

Opened! September 2008

$100,000,000Upgrade US 74 to Interstate Quality West of I-95Major upgrade from Wilmington Container Terminal to I-85

1

1

22

3

3

Major Projects Improve Highway Transportation AccessMajor Projects Improve Highway Transportation Access

77

75

85 58

Projected completion 2014

Charlotte

26  miles  of  rail  to  be  restored from Castle Hayne to Wallace

Improve  access  to  Fayetteville  (Ft. Bragg) via  improvements  to  Pembroke  turn  and CSX Ft. Bragg connector

QuestionsQuestions

??