Warehousing

1
Warehousing DistributionGrowth and
DemandAASHTO Standing Committee on Water
Transportation

• Presented by
• Tom CapozziSenior Managing Director of
  MarketingVirginia Port Authority

2
Calendar YTD PerformanceJanuary - December 2005

• CY04 CY05 Increase

1,808,933
1,981,955
9.6
TEUS
3.5
Ship Calls
2,178
2,104
-14.7
584,863
Breakbulk
498,745
Unit of measurement tons Source Terminal
Statistics Jan Dec 2005
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Port of VA Performance/Forecast
2.34M
2.15M
1.98M
1.81M
1.65M
1.44M
9 Annual Growth 2005 2007
4
Forecast Containerized Cargo Growth
Over 5 Million TEUs by 2030
6.0
5.0
4.0
2 Million TEUs in 2005
TEUs in Millions
3.0
2.0
1.0
VPA 2010 Plan Forecast
2006
2008
2010
2012
2014
2016
2018
1998
2000
2002
2004
2020
2022
2024
2026
2028
2030
5
Volume Increase - Northeast Asia
Northeast Asia Import Growth
Source PIERS (Calendar Year)
266,308
199,856
149,823
102,999
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Distribution Centers
Over 80 Distribution Centers located in VA
7
Current Speculative Warehousing Projects
Updated 1/09/06
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Major Economic Development

• WalMart Expansion James City County
• Cost Plus Expansion Isle of Wight County
• SYSCO Corp. new distribution center (DC)
  Rockingham County
• Dollar General Expansion Halifax County
• NYK Logistics - Hampton, VA
• Target Expansion Suffolk, VA
• Evans Distribution new warehouse Suffolk, VA
• Lumber Liquidators new DC James City County

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Distribution Center Forecasts

• 5 Million TEUs Through The Port By 2030
• 50 Import Cargo 2.5 Million TEUs
• 60 of Imports Go Through a DC 1.5 Million TEUs
• A Single 1 Million SF Distribution Center
  Facility Can Process 20,000 to 50,000 TEUs Per
  Year
• 30 To 75 Million SF Are Needed For 1.5 Million
  TEUs
• 10 To 15 Million SF Are Already In Use in 2005
• An Additional 20 to 60 Million Square Feet of DC
  Space Will Be Needed in 2030

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Current Conditions for DC Market

• Historical Vacancy Rates of 10
• Growth Business Build it then Fill it
• Hampton Roads Current Vacancy Rate 4
• Lowest on East Coast with Savannah
• Criteria for New Construction Sites
• Cost of Land
• Cost of Transportation
• Labor Availability
• Logistics Efficiencies

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Current Distribution Center Trends
Existing DC Locations
Future DC Growth
Heavy Congestion Areas
12
Proposed Intermodal Park Trend
Existing DC Locations
Future DC Growth
Heavy Congestion Areas
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What is an Intermodal Park?

• Centralized Location for the Processing and
  Distribution of Import Cargo
• Comprised of Numerous Distribution Centers
• Located Near a Port - Multimodal Support
• Adjacent to Reliable Transportation Networks
  Road and Rail
• Can Offer Multiple Services
• Cross-Dock and Trans-Load
• Pick and Pack
• Storage

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Sample Intermodal Park Layout
Existing Route 460
Rail Yard
Proposed Route 460 Widening Alignment
ICTF Parking
Intermodal Park
Windsor
Existing Rail Line
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Best Intermodal Park Locations
Prince GeorgeCounty
YorkCounty
Poquoson
ChesapeakeBay
NewportNews
Surry County
Hampton
James River
Waverly
Isle of WightCounty
Wakefield
SussexCounty
10 Miles
20 Miles
30 Miles
35 Miles
40 Miles
Norfolk
Ivor
Zuni
Portsmouth
SouthamptonCounty
Virginia Beach
Windsor
Chesapeake
Suffolk
Franklin
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Economic Opportunities

• Distribution Jobs and Services Gain Momentum
• Related Businesses Pop-up
• Residential Communities Grow
• Supporting Infrastructure Is Required
• Schools
• Medical
• Government Services
• Unrelated Businesses Move-In
• An Economic Hub is Created

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Example of Existing Intermodal Park

• Californias Inland Empire
• Example of Planning to Capture Import Market
• Industrial/Commercial/Residential Center and
  Transportation Hub Inland of Congested
  California Coast
• Inexpensive Land
• Excellent Transportation Links
• Away From Congested Port Area
• Over 277 Million SF of Warehouses

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Inland Empire Pre-1970
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Inland Empire Today
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Inland Empire Growth

• 1950s Agriculture Based
• 1970s Distribution Services Grow
• Inexpensive Land, Good Transportation Connections
• Relieved Pressure on California Coast (LA)
• 2005 Fastest Growing MSA in the United States
• Universities, Hospitals, Research
• Distribution Employment is Now Only 14 of Region
• Stand-Alone Economic Hub

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Summary

• Containerized Cargo Volumes at The Port of
  Virginia Will Nearly Triple by 2030
• Additional Distribution Centers are Needed to
  Accommodate Future Cargo Growth
• Opportunity for Rural Communities to Capture
  Economic Growth
• Intermodal Park Concept Requires
• Advance Planning
• Coordination Between Stakeholders

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The Port of Virginia
DC Development Potential

• A World Class Port
• Long-Term Growth in Cargo
• Good Road Access
• Good Rail Connections
• Available Large Tracts of Land
• Coordination and Momentum