STRENGTHENING PORT SECURITY

STEWARDS OF THE ENVIRONMENT

A NETWORK OF PREMIER FACILITIES

AN EPICENTER FOR GLOBAL TRADE

THE PORT OF NEW YORK AND NEW JERSEY

CONTINUOUS INVESTMENT

Port Authority of NY & NJ

Responsible forAirportsTunnels & BridgesPATHPort of NY & NJWorld Trade Center

Established in 1921 by an act of US CongressFinancially self-supporting through user fees and bond issues.Landlord PortBoard of Commissioners chosen by Governors of NY(6) and NJ(6

The Port of NY & NJ is the largest port on the East Coast and the third-largest in the nation.

Cargo volumes rose .5% over 2011 to 5.53 million TEUs in 2012 – an annual record for the port.

$2.3 billion invested since 2000 to prepare the region’s port for future growth.

AN EPICENTER FOR GLOBAL TRADE

AN EPICENTER FOR GLOBAL TRADE

2011 Container O & D

20%

10%

8%

5%2% 0% 2%

35%

9%

9%

53%

N. Europe

Latin Am

Medit.

MidEast

Africa

Austr/Oc.

Other

Far East

S.E. Asia

Indian SC

A NETWORK OF PREMIER FACILITIES

CHANNELSBy 2014, Port of NY &NJ will have 50ft (15.2m) depths to all container terminals.

OCEAN CARRIER SERVICESMore ocean carrier choices with competitive transit

RAILSMore rail destinations than any other port.

WAREHOUSING / DISTRIBUTION More rail destinations than any other port.

TERMINALS3000 acres of marine terminals. 1400 acres dedicated to container terminal operations.

CHANNELS

OCEAN CARRIER SERVICES

TERMINALS

RAILS

WAREHOUSING DISTRIBUTION

PORT OF NEW YORK

FulfillmentCONTINUOUS INVESTMENT

2010

Board authorizes $1

billion in capital

funding for project

2011

Raise the Roadway

option selected$25 m for

planning and engineering

services

Environmental Permitting

Process Starts

2012

$34.7 m authorized

for engineering

Contractor RFQ issued

100% Final engineering

design complete

2013

Complete Environmental

Permitting

Issue bid documents and choose contractor

End 2015

Air Draft of 215 Feet available

ILA CONTRACT NEGOTIATIONS

USMX and ILA have reached a tentative agreement for a 6 year contract.

AN EPICENTER FOR GLOBAL TRADE

More ocean carrier choices with competitive transit times – 64 services call the port.

43 First In Calls and 11 Last Out Calls. The most ‘first port’ calls in the Panama, Suez and Europe/Med services.

Frequency of service by trade at the port (Important in building intermodal unit trains)

2012 MILESTONES

Completed flyover

between Port Newark

Container Terminal and ExpressRailPort Newark

Completed deepening of Port Jersey Channel to

50 feet

Completed construction of Berth 6 in Port

Newark

Initiated work on

McLesterStreet

widening

Express train to

Chicago, Second

Columbus, Ohio and Louisville, KY stop

Physical exams

moved off terminal

and performed at 4 CES facilities

2013 MILESTONES

Complete McLester

Street Widening in

Port Newark

Complete Port Street

and Brewster

Street Connector

in Port Newark

Award Contract for Port Jersey

ExpressRail Facility at Greenville

Award Contract for expansion

of Port Newark

Express Rail Facility

NS Train Service: Ayers, Mechanicsville, BethlehemCSX : Memphis, Expedited Worcester service

Utilize more

technology to improve productivity

- RFID

The expansion of ExpressRail network includes a planned fourth on dock terminal -ExpressRail Port Jersey

A NETWORK OF PREMIER FACILITIES

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Lift

s/Ann

umPort Jersey Staten Is.Newark Elizabeth

2012 + Phase 2A (PNCT) Flyover

2014 + Port Jersey Phase I

2015 + 2A PNCT Expansion

2016 + Port Jersey Phase II

TBD –NYCT Tracks 6-11 + Corbin St. 2B

Expressrail Port Jersey

Location

Ability to reach 20% of the U.S. population in under 8 hours; more than 30% in under 48 hours.

21% of U.S. Retail Sales are in the Northeast;18% in the Midwest

58% of Canadian Retail Sales are in the Provinces of Ontario & Quebec

Immediate entry to the most densely populated region of the U.S.

Quick access to major population centers

GioaTauro

Colombo Singapore

Kaohsiung

KobeLosAngelesNewYork/NewJersey

Jiddah

Landbridge 10-State Market AreaAlgeciras

HongKong

PONYNJ: All Water Service

Containerization

Foreign Commerce

Longshoremen

1956 36 million MT

35,000

2011 79 million MT

3,500

Size of Ships has Grown Dramatically

Source: Alphaliner

New Panama Canal Locks

8000 TEU Ship via Panama Canal Expands Market Reach of USEC ports

4000 TEU ship51% of US market

8000 TEU ship66% of US market

Assumptions$400/MT bunkerCanal tolls based on 2011 proposalCurrent ship charter ratesInland move by rail

Based on Halcrow, Princeton Consultants route cost model –June 2010

FulfillmentWho Gets to Decide???

Decision BoxInput Output

$$$

$$$

FulfillmentMain Drivers of the Decision for Importers and Exporters

SpeedReliabilityCost

FulfillmentOne Possible Future

What could happen for Albany

FulfillmentWhat does Albany Need to Be Ready?

Create OpportunityWater DepthFacilities / TerminalsEquipment / Cranes

Container Marine Terminals

Maher Terminals: 445 acres PNCT: 210 acres APMT: 350 acres

Global Container MT: 120 acresNew York CT: 187 acres Red Hook CT: 65 acres

A NETWORK OF PREMIER FACILITIES

FulfillmentWhat does Albany Need to Be Ready?

Private Sector Partners•Tug Barge / Small Ships•Warehouse Space•Road and Rail Access

FulfillmentDrivers of the Decision

ImportersExportersTruckerLogistics providersWarehousemen Ocean carriersRailroadsCost of fuelCapacity of terminals in Port of New York and NJ – explainTerminal Investment – densifyterminalsShift work at terminals 24 / 7 operationsMarine highway subsidyBarge serviceSmall ships

$$$$ Albany by Water

=

FulfillmentWhat does Albany Need to Be Ready?

Commitment

Thank You?