the voice of port industries since 1920 757-622-2639...long history of safe operations and...

The Voice of Port Industries Since 1920757-622-2639

FeaturingWilson Browning III, Kinder Morgan

Fred Harry, AdvanSixCees Van de Mortel, T. Parker Host

Wilson Browning, IIICommercial Director, Southeast Region

Note: Mileage and volumes are copanywide per 2019 budget

https://www.kindermorgan.com/pages/default.aspx

a) 2019 budgeted Segment EBDA before Certain Items plus KM share of JV DD&A. See Non-GAAP Financial Measures and Reconciliations.b) Includes KM share of non-wholly owned projects. Includes projects currently under construction.


Notes: Does not reflect refined product or crude oil volumes through Jones Act tankers.Petroleum includes crude oil and black oil (e.g., residual fuel oils).Does not include assets held for sale.2018 does not include transfer of Products Pipelines terminals.


Pier IX Terminal Pier X Berth

Kinder Morgan Dry Bulk Terminalon the James River

• James River in Newport News, Virginia• 66-acre terminal• Two berths with max draft of 50 feet and a shiploader capable

of loading 3,500 tons per hour.• Direct unit train connection to CSX railroad with a double rotary

railcar dump system capable of unloading 600 railcars per day.• Designed to handle export/import coal, petcoke, and cement• 1.2 mm tons of ground storage and approximately 17 mm tons of

total annual throughput capacity.

• Pier X Import / Transload Berth• Two Gottwald Cranes with 42 and 52 cubic yard bucketscapable

of unloading 25,000 tons per day.• Two travelling hoppers feed a high speed conveyor thatconveys

to ground storage• The Pier X berth LOA is 825 feet, with a 46 foot draft, a

122 Breadth limit• This pier is a key asset for inbound bulk handling and


Elizabeth River Terminal Moneypoint Terminal

Kinder Morgan Dry Bulk Terminals on the Elizabeth River

• Southern Branch of the Elizabeth River in Chesapeake, Virginia• 107 acre terminal • two berths with max draft of 35 feet • Rail connection with Norfolk & Portsmouth Beltline RR Shortline

connecting to NS and CSX railroads • Designed to handle many different commodities such as

fertilizer, salt, ores, minerals, aggregates, scrap steel • Eleven warehouses, five truck scales, and two rail scales. • Recently added two large floating Gottwald Cranes with a max

unloading capacity of 25,000 tons per day

• Southern Branch of the Elizabeth River in Chesapeake, Virginia• 42 acre terminal • One ship dock with a draft of 32’ 6” and one barge dock w draft of 18’0” • Designed to handle many different commodities such as

pumice, sand, stone, and aggregates • Conveyor systems from dock to open storage


South Hill Terminal Norfolk Terminal

Kinder Morgan Liquid Bulk Terminals on the Elizabeth River

• Southern Branch of the Elizabeth River in Chesapeake, Virginia• 106 acre terminal • One berth with max draft of 35 feet • Norfolk Southern RR connection with liquid rail loading/unloading • 24 Tanks holding 1.4MM barrels of liquid storage • Designed to handle many different commodities such as

Petroleum, liquid fertilizer, specialty chemicals • Connection to the Colonial Pipeline• Truck scale and metered automated truck rack

• Eastern Branch of the Elizabeth River in Norfolk, Virginia• 16 acre terminal • One berth with max draft of 25 feet • Norfolk Southern RR connection with liquid rail loading/unloading • 11 Tanks holding 420 K barrels of liquid storage • Designed to handle many different commodities such as

Petroleum, fuels , and specialty chemicals • Truck scale and metered automated truck rack


Port of Virginia Terminals

Port of VirginiaTerminals

Breakbulk = 8Coal = 3Container = 6Dry Bulk = 16Liquid Bulk = 16Passenger = 1Refrigerated = 1Ro/Ro = 4


Kinder Morgan Virginia Terminals

Kinder MorganVirginia TerminalsCoal = 1Dry Bulk = 2Liquid Bulk = 2

Important FactsTotal KM employees = 165

Total Acreage = 337

Total HRoads Port Calls 2018 = 375

KMT Safety Record TRIR = 1.05

DO THE RIGHT THING EVERY DAYKinder Morgan Core Principles: 1. Safety Will Not be Compromised 2. Environmentally Compliant and

Responsible Operator 3. Ethics and Integrity 4. Commitment to Employees and Resources 5. Customer Service and Fiscal Responsibility 6. Quality Focus


Fred HarryHopewell Plant Manager

©2019 AdvanSix Inc. All rights reserved.

15

Introducing AdvanSix

• Leading integrated Nylon 6 business with 60+ years of operations

• Spun off from Honeywell on 10/1/16

• Listed on NYSE: ASIX

• Strong heritage of operational discipline and proven ability to deliver high-quality products

• American Chemistry CouncilResponsible Care® company

4 U.S.-Based Manufacturing Facilities

Vertically Integrated andWorld-Scale

Frankford, PA • Hopewell, VA Chesterfield, VA • Pottsville,PA

1,500+ Employees

Senior Leaders Average 20+ Years of

Service EachErin Kane, President & CEO

HQ: Parsippany, NJ

Sales by Product Line

All data as of 12/31/2017

Ammonium Sulfate: 19%

Nylon: 29%Chemical Intermediates:

33%

Caprolactam: 19%

~$1.5 Billion in Revenue

Sales by End Market

Building & Construction

Ag / Fertilizer

Solvents

Packaging

Coatings, Adhesives

Other


16Our Presence in Virginia Long History of Safe Operations and Innovation

• One of world’s largest single-site producers of Caprolactam and Ammonium Sulfate fertilizer

• ~600 employees• Capacity: 795M lbs

Caprolactam 3.3B lbs

Ammonium Sulfate 600 KMT Ammonia

Hopewell Plant


• Capacity: 795M lbs Caprolactam 3.3B lbs Ammonium

Sulfate 600 KMT Ammonia

Chesterfield Plant

• Second largest U.S. site for Nylon 6 production

• Resins in wide range of viscosities and specifications

• Capacity: 440M lbs Nylon 6 Resin

• Legacy operations began in 1928

• Current integrated Nylon operations began in 1952

• Our three locations cover more than 850 acres, primarily along the James River

Colonial Heights

• Conducts nylon-related research with laboratory-scale polymer reactors

• Newly-expanded to meet demand for high-value nylon polymers for packaging film and other applications

• ~ 40 scientists and researchers


17Health, Safety And Environmental (HSE)Our HSE Values Reflected in Performance

• Rigorous commitment to Safety and Occupational Health• Strong focus on process safety and risk reduction• Capital investment resulting in emission reductions and improved compliance

Total Case Incident Rate (TCIR)

1.40

0.84 0.77 0.44

0.00

0.50

1.00

1.50

2.00

2016 BLS Benchmark* 2017 ACCBenchmark**

2016 2017

43% Improvement

*U.S. Bureau of Labor Statistics TCIR benchmark for Plastics Material and Resin Manufacturing industry**ACC benchmark for medium size companies

Criteria Pollutants (tons)

0

2,000

4,000

6,000

8,000

10,000

12,000

2014 2015 2016 2017 2018E 2019E

AdvanSix Coal-Based Steam Supply


18Our Value Chain Competitive Advantage Derived from Significant Scale, Integration and Diverse Revenue Streams

Frankford Plant Hopewell Plant Chesterfield Plant


• Capacity: 795M lbs Caprolactam 3.3B lbs Ammonium Sulfate 600 KMT Ammonia

CPL • Second largest U.S. site for Nylon 6 production

• Resins in wide range of viscosities and specifications

• Capacity: 440M lbs Nylon 6 Resin

NaturalGas

Phenol

Sulfur

• Second largest producer of Phenol and Acetone in North America

• Acquired in 2011 from Sunoco• Capacity: 1.1B lbs Phenol

680M lbs Acetone

Cumene Nylon Resin

Sulf-N® Ammonium Sulfate Fertilizer

Nadone® CyclohexanoneNaxol® Cyclohexanol

Flake & MoltenCaprolactam Aegis® Nylon 6 ResinsPhenol, Acetone, Alpha-Methylstyrene

Additional BOPA Film

assets located in Pottsville, PA

Raw Materials ASIX Product

Cumene is converted into Phenol, Acetone & Alpha-Methylstyrene

75%-80% of Phenol produced at Frankford transported to Hopewell

~60% of the Caprolactam produced at Hopewell shipped to Chesterfield


19Our People in Virginia The Foundation for Our Success

~ 1,100 employees in the state~ 200 contractors ~ 250 employees hired since 10/1/2016~ 80 employees hired year-to-date

~ 500 union-represented employees ~ Recently concluded Hopewell contracts

>$100K wage/salaried employee>$70K wage/hourly employee

- Home to company’s R&D function, including 40 scientists

- Growing relationships with community colleges for vocational positions- 23 Co-ops from VCU, VT, UVa and more


20Our Operational FootprintLarge Logistical Requirements Drive Statewide Commerce

Trucking Rail Marine Pipeline

• 15,000 truck shipments• $14.2M freight spend

with 9 local companies• 3 of 5 top 5 companies

nationwide are VA-based

• Named Atlantic Bulk Carrier (Providence Forge, VA) as Carrier of the Year

• 13,000 rail shipments via CSX and NS

• $41M freight spend on VA shipments alone

• 1400 leased railcars with on-site maintenance ops

• Dry bulk loading 35-40 vessels in Hopewell/Norfolk

• Additional 3,000 containers shipped annually

• $15M ship loader investment on the James (2017)

• James River dredging funded• Operating 3 barges, 1 ocean-

going vessel to enable integrated supply chain

• Hopewell is one of largest non-utility natural gas users in Virginia

• Feedstock for making ≥ 500,000 tons of ammonia

• $60-$80M spend annually• Require second pipeline

to ensure reliable, affordable supply


21Our Presence on the James RiverSustainable Practices Drive Efficiency and Performance

• Sustainable and Clean Water for our community– James and Appomattox Rivers are the intake for local water authority– Significant cooling water uses a number of industrial users up and downstream– AdvanSix presence on James River Association Board, corporate member and participant in

annual events– Upgraded a hydraulic ship loader with an environmentally friendly unit– 8% reduction in purchased water use since 2013 due to waste reduction

and recycling efforts

• Navigable Water for trade– AdvanSix organizes and funds regular dredging of the channel to allow for large vessels in and out

of the Port of Hopewell– Key waterway to support Port of Richmond gateway to extended markets for many in the region– Every pound of material moving via river reduces impact of trucks and trains on aging infrastructure


22Our River Community

• Support and partnership with local organizations– Friends of the Lower Appomattox River – Hopewell River Walk– VA DEQ Storm Water volunteers waste pick up

• Focus on river access and amenities– Bolsters downtown commerce– Driver in new living spaces– Uplifts to tourism and outdoor activities– Riverfront redevelopment key to local economy

• Marinas • Fishing / Swimming/Boating• Trails / Kayak or Canoe launch• Links to other State Trailways for regional experiences

Waterways are Focal Point of Economic Development

©2019 AdvanSix Inc. All rights reserved.No reproduction or use of this material may be made without prior written permission from AdvanSix.

23

Cees Van de MortelChief Commercial Officer

KM Elizabeth River Terminal

Commodities Outside the Box2018 Tonnage (M) 2018 Vessel Calls

Total 66.2 2,468Coal 38.6 618Container* 21.8 1,660Miscellaneous Total 5.8 328Aggregates 0.2 11Biomass 1.0 34Cement 0.2 15Fertilizer 0.4 31Gas Carrier 0.1 7General Cargo 0.1 51Grain 2.0 75Liner Breakbulk 0.2 1Liquid Chemicals 0.5 67Liquid Oil 0.1 11Miscellaneous Bulk 0.3 13Petcoke 0.5 4Salt 0.1 8

Source: PIERS, T. Parker Host, Port of Virginia

*Estimated data for December

Coal58.3%

Container33.0%

Grain3.0%

Biomass1.5%

Petcoke0.8%

Liquid Chemicals0.8%

Fertilizer0.6% Misc.

Bulk0.4%

Cement0.3%

Liner Breakbulk0.3% Aggregates

0.3%

Salt0.2%

Liquid Oils0.2%

General Cargo0.2%

Gas Carrier0.2%

Wider, Deeper, Safer

59 ft

56 ft

56 ft55 ft

45 ft

Source: VA Maritime Association; US Army Corps of Engineers

Elizabeth River

Perdue Grain Elevator

Apex Oil

Enviva

KM Elizabeth River TerminalKM Money Point

Sims Metal

SeaGate

Lafarge

Morton Salt

Vane Brothers

CITGO Petroleum

Kerneos

International-Matex Tank (IMTT)

KM South Hill

KM Southeast

DCP Midstream

Southern States Co-Op

US Gypsum

Vulcan Money Point

From 40 to 45 ft

From 40 to 42 ft

From 35 to 39 ft

Maintain 35 ft

• Project cost estimate: $165M • Benefit to cost ratio: $2.40

• Disposal cost: $97M • 485K cuyds @ $12.00 / cuyd = $6M • 829K cuyds @ $110.00 / cuyd = $91M

• Additional sampling • Alternative disposal methods

• Revenue not forward looking • Deeper, then fewer larger vessels, reduced ocean freight cost• Improved efficiency loading and discharging • Supramax: 35 ft 42,000 MT

39 ft 50,000 MT42 ft 55,000 MT

Dredging the Southern Branch

Southern States Co-Op: Farm Equipment Supplier

Elizabeth River Recycling: Recycling Center

Gilmerton Bridge

High Rise Bridge

Luck Stone Corporation: Granite SupplierCoastal Constructors Heavy Haulers: General Contractor

Coastal Precast Systems: Concrete Product Supplier

Piedmont Fabrication LLC: Metal FabricatorEast Coast Steel Fabrications: Steel FabricatorPrecon Marine: Construction Company

Tidewater Tank Terminal: Leachate

Pivotal Propane: Gas Tank

CHEMRES: Chemical PlantA&R Logistics: Trucking Company

Nova Chemicals: Plastic Fabrication Company

Hitch So Branch Terminal LLC: General IndustrialAgrium: Vacant Land

Tidewater Tank TerminalTriport Terminal Lease Tidewater Tank Terminal

• Vessel restrictions during reconstruction of the Gilmerton Bridge, from 2009 to May 2015• Once the bridge was completed, the vessel restrictions remained in place. • New fendering system take max. beam from 80 ft to 101 ft.• Barge only versus vessel access for:

• Projected Cost: $2.4M• Request funding from City of Chesapeake • Host funds half

• Timeline: 15-18 months• Promote investments for waterfront facilities with larger vessel access• Revitalize existing businesses

Gilmerton Bridge

Advansix

DuPont

Associated Asphalt

Kinder Morgan

Newport News Marine Terminal

Dominion Terminal Associates

Kinder Morgan

Kinder Morgan

James River

Richmond Marine Terminal

TranlinDominion Energy

Shirley Plantation

Vulcan

Vulcan

BASF

Commercial Users of the James River

(Formerly Honeywell)

*Meadwestvaco and Philip Morris for James River Barge Line

James River Traffic

*Estimates subject to projects

Company Annual Vessel Calls Annual Barge Calls

Advansix 50 130

Associated Asphalt 10 -

DuPont 10 -

James River Barge Line - 150

Dominion - 60

Vulcan* - 300

Luck Stone* - 100

Kinder Morgan* - 50

Shirley Plantation* - 40

Total 70** 830**

** Trucks off I-64

18

19

20

21

22

23

24

25

High Tide Maximum Draft

James River Draft Fluctuations

*No dredging from 2/15 to 7/1**Vessels > 21 ft. Daylight hours only

Current Situation• Unrestricted navigation on the James River is critical. • Corporations have set up operations basis the ability to move their product by ship and

barge on the James. • The nature of the River requires annual maintenance dredging of locations such as

Dancing Point, Swann Point, Jordan Point, Windmill Point, Tribell Shoals, and Richmond Deepwater Terminal.

• All this has to be done during the six-month environmental window. • Annual funding to meet the current and future maintenance dredging needs is a

must to restore the James to unrestricted navigation.

I don’t think inside the box. I don’t think outside the box either…

I don’t even know where the box is!

For questions:Will Fediw: [email protected]

David White: [email protected]

mailto:[email protected]

mailto:[email protected]

the voice of port industries since 1920 757-622-2639...long history of safe operations and...

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