Marketing/ Business DevelopmentCommittee Presentation

Board of Commissioners

Session 350

March 26, 2013

2013 Fiscal Year-to-Date, July-February

Total TEUs 1,439,316 1,285,472 +12.0

Total Rail Containers 267,730 224,531 +19.2

Vehicles28,069

27,507 + 2.0

Sou

rce:

Ter

min

al S

tatis

tics

FY 2013 FY 2012 %Change

Import TEUs 668,322 591,880 +12.9

Export TEUs 770,994 693,592 +11.2

Ship Calls 1,299 1,246 + 4.3

B/B Tonnage 237,497 240,995 - .5

Total Barge Containers 38,157 28,739 +32.8

VIP Containers 22,275 22,395 -0.5

2

Container UnitsBudgeted vs. Actual, FY 2013

Jul-1

2

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Jan-13

Feb-13

Mar-

13

Apr-13

May

-13

Jun-13

80,000

85,000

90,000

95,000

100,000

105,000

110,000

115,000

120,000 Budgeted Actual

+6,230

+14,343 -5,372

+16,606

+5,307+13,671

-1,238

+2,984

FY 2013

824,916

772,385

FY Jul-Feb: +52,531

units +6.8%

3

Port of Virginia

New York/ New Jersey

(Nov)

Savannah Charleston Jacksonville Baltimore Wilmington NC

-8%

-4%

0%

4%

8%

9.8%

0.3% 0.7%

9.6%

2.5%

8.0%

-5.8%

US East Coast Ports Calendar Year-to-date GrowthTotal TEUs, Jan-Dec, 2012 vs. 2011

Charleston and Savannah combined growth: 3.7%

2.6% US East Coast Growth: 2.6%

4

AFRICA

AUSTRALIA/NEW ZEALAND

CARIBBEAN/CENTRAL AMERICA

INDIAN SUB-CONTINENT/MIDDLE EAST

EUROPE (N. Europe + Mediterranean)

NORTH EAST ASIA

SOUTH AMERICA

SOUTH EAST ASIA

-5% 0% 5% 10% 15% 20% 25%

13%

9%

23%

12%

14%

6%

13%

16%

8%

9%

-2%

4%

2%

2%

0%

8%

Port of Virginia vs. USEC Growth by TradelaneBased on 2012 vs. 2011 Loaded TEUs

Source: PIERS

USECPort of Virginia

5

2012 Commodity Highlights

LARGEST GAINS Growth

Furniture 17%

Auto Parts 35%

Paper & Paperboard incl. waste 14%

Grain and Soybean Products 26%

Wood Pulp 24%

LARGEST LOSSES Loss

Grocery Products -26%

Newsprint -27%

Automobiles / Buses -10%

Boards (Fiberboards) -56%

Synthetic Resins (Polymers) -7%

CY 2012 vs. CY 2011

6

2012 U.S. Cargo Value Throughput - Port of Virginia

HI$2.8 M

AL$111 MMS

$76 M

NJ$11.5 B

RI$21 M

$3.6 B

$.8 M

$517M

$5.6 B

$16.9 M $60.6 M

$3.9 B

$1.6 B

$7.2 B

$.4 M

$353M

$306 M

$8.5 M

$46 M $3.2 M

$70 M$276 M

$3.5 M

$18 M

$217 M

$642 M

$43 M

$3.1 B

$2.6 B

$1.2 B

$4.6 B

$1.2 B

$5.7 B

$6.8 B

$1.4 B

$2.3 B

$1.3 B

MD$1.6 B

$11 B

IN$1.1 B

$2.7 B

WV$333 M

$22 M

DE$718 M

MA$636 M

NH$45 M

VT$6.2 M

CT$552 M

$155 M

Source: PIERS, VPA Business Analysis

Total combined value = $86.5 Billion

AK$.7 M

7

Vessel Services

CKYH Alliance Restructure

• Comprised of Cosco, “K” Line, Yang Ming and Hanjin Shipping

• Norfolk call on 2 out of 5 services• Last call on AWE2 • New port rotations to start in mid-April

9

G6 Alliance

• Merged the Grand Alliance of Hapag-Lloyd, NYK Line and OOCL and the New World Alliance of APL, Hyundai Merchant Marine and MOL

• Norfolk call on 5 of 6 services– One more than NY/NJ, 2 more than Charleston, same number

as Savannah

• Last call on AZX (5000 teus x 10) now offered by all six carriers

• First-in on SVS (5600 teu x 10)now offered by all six carriers

• New service CEC (7500 teu x 10) with largest ships in the G6 portfolio calling the East Coast

10

Economic Development

2012 BIG WINS

2013: BIG THINGS AHEAD

Container volume through the Port

Indian River Distribution Center, Chesapeake

2700 International Parkway, Virginia Beach

Regional Commerce Center, Suffolk

Panama Canal Expansion

12

New Announcements

13

Expansion Announcements

14

Grandwatt Electric Corporation

• Grandwatt Electric Corporation, a China-based manufacturer (Shenzhen Superwatt Power), has selected Suffolk for their first U.S. location.

• The company is privately owned and a manufacturer of power generators for telecom, mining, railway and other commercial and industrial applications.

• This announcement represents a $10 million investment and 50 new jobs.

15

Lipton

• Lipton Tea, a division of Unilever, announced they will stay in Suffolk and upgrade their current facility. They credited the proximity to the port as a key factor in the decision.

• The company will invest $96 million to upgrade equipment and expand production space.

16