Most Americans don’t know much about ports and why they are important not only to our economy but to each one of us.
Tom Freidman declared the world was flat a couple of years ago. He explained in his book some of the drivers that supported globalization. With manufacturing migrating to regions of the world that are more low cost, it is a phenomina that seems to be here to stay. What Tom did not talk about was the fact that our Maritime Transportation System has helped to create an almost frictionless surface on which to move goods. Ports are the nodes through which international trade shifts from marine transportation to landside. They create that vital link. In our case we provide a connection with over ----- ports around the world and create a path for both imports and exports. Think about the world around us. From home furnishings, to cloths to cars to energy to the food we eat, more and more is made somewhere else and it finds its way to us by ship. Also important because of another reason-
2011 was also a very busy year for us. We had a number of new construction starts on Port projects which are listed here. Roadways played an especially prominent role in our 2011 capital projects with 2 completions of major roadway projects and 2 new starts. Three of these projects would not have been possible without the cargo facility charge that was introduced in March of this year. Also please note that we have started 2 new container terminal expansion projects, a new intermodal rail terminal in Jersey City Greenville Yard, and on October 31 st , initiated the environmental permitting process on the Bayonne Bridge project – more on that later. We also are 70% complete with our 50 foot deepening project which will be completed in Port Newark/Elizabeth and Port Jersey by the end of 2012 and to NYCT by the end of 2014.
NJFuture Redevelopment Forum 13 Ports Larrabee
NJ FUTURE 2013REDEVELOPMENT FORUM March 1, 2013 Rick Larrabee - DirectorPort Commerce Department
Why Ports are Important•10% of World Trade is to/from the USA•22% of World GDP is US GDP•25% of US GDP is International Trade•90% US International Trade(by volume) Moves by Water•65% (by value)
Why are Ports Important?In 2010, the New York-New Jersey Port Industry supported:•170,770 direct jobs•279,200 total jobs in the NY-NJ region•Nearly $11.6 billion in personal income•Over $37.1 billion in business income•Almost $5.2 billion in federal, state and local tax revenues•Local and State Tax Revenue: $1.6 billion•Federal Tax Revenue: $3.6 billionSource: Economic Impact Study - NYSA
PONYNJ Trade Distribution by Foreign Region - 2011Source: PIERS
Location Quick access to major Immediate entry to the population centers most densely populated region of the U.S.Ability to reach 20% of the U.S. 21% of U.S. Retail Sales are in thepopulation in under 8 hours; Northeast;18% in the Midwestmore than 30% in under 48 hours. 58% of Canadian Retail Sales are in the Provinces of Ontario & Quebec
PONYNJ: All Water Service Landbridge 10-State Market Area Algeciras NewYork/NewJersey Gioa TauroLos Angeles Kobe Jiddah HongKong Kaohsiung Colombo Singapore
50 Foot Harbor Deepening Project UpdateCompletion Dates:December 2012:Newark BayPort Jersey ChannelKill van KullAmbrose ChannelBy 2014:Arthur Kill Nov. 2010 USACE as of March 2012
Unparalleled Rail Network$600M On-Dock Port Rail Investment
More Inland DestinationsServed by CSX, Norfolk Southern & Canadian Pacific Railway
NJMT Roadway ImprovementsPort St. & Brewster Rd.Comp. 3Q - 2013 McLester St. Roadway Widening North Ave. / McLester St. Curve Comp. 4Q - 2013 Realignment Completed - 12/11
Warehousing and Distribution•Most densely populated and affluent US region•Push for one day fulfillment on internet sales•Amazon investment in 1 m sq ft facility in Robbinsville, NJ. / 400+ employees•NJ/PA market is 2nd largest industrial real estate market in USA (CA #1)
Clean Air StrategyRetrofit Two Locomotives With GenSets:$1.8M CMAQ grant, $600K PANYNJ investment,$600K CSX & NS investmentOcean-going Vessel Low Sulfur Fuel Incentive:$6.36 M program financed by PANYNJ Reimburse50% of cost differential: bunker fuel vs low sulfurfuel. Vessel speed reductionBrooklyn Cruise Terminal Shore PowerInstallation:$15 million program, $2.85 million EPA grantCargo Handling Equipment (CHE) FleetModernization :$2.24 million program incentives by PANYNJ;Reimburse tenants 20% of the cost to replaceolder CHE with newer or cleaner CHE.