A R T I C L E S :

• 2011 record tonnage

• Ambassadors’ visits

• Repower cargo

• New dry bulk cargo

• Chilean fruit season

• Argentine fruit & juice

• Steel cargoes

• 45ft deepening project

• Recent events

• Farewell to Russ Larson

• Upcoming events

P O R T S E T S A N E W T O N N A G E R E C O R D

The Port of Wilmington, Delaware handled almost 5.1 million tons of cargo in CY 2011, a 26% uptick year-over- year, and established the highest general cargo tonnage throughput since the 1995 acquisition of the Port by the State of Delaware. The Port is owned and operated by the Diamond State Port Corp. (DSPC), a state entity. Increased import and export tonnages were achieved in all major cargo categories during the past year.

Based on the Port’s 2011 performance, Wilmington retained its leadership position in the following trades:

North America's number one port for imported perishable cargo.

The largest banana port in the US and the second largest in the world.

The nation’s leading port for juice concentrates.

The leading loading port for cattle exports on the US East Coast

The teamwork of the men and women at the Port of Wilmington, Delaware, and the support of the Port’s customers and business partners enabled the Port to

reach this important mile-stone and generate signifi-cant regional economic im-pact. Delaware’s seaport creates 4,300 family-sustaining regional jobs which produce $365 million in annual business revenue and $31 million in regional annual tax revenue. Port activity generates $34 million in annual Port revenue.

(R-L) Ambassador Forsyth; Gene Bailey, DSPC executive director; Renato Reyes Tagle, minister counselor at the Peruvian Embassy in Washington, DC and Tom Keefer, DSPC deputy executive director.

His Excellency, Harold W. Forsyth, the Ambassador of Peru to the US, visited the Port in March to discuss how Peru and Delaware can increase bilateral trade. The Port is experienced in handling Peruvian mineolas, table grapes and dry bulk cargoes. Peru is one of the fastest emerging exporters of fresh fruit in the Southern Hemisphere and an important trading partner for Delaware.

(R-L) Benjamin Leavenworth, Chile’s honorary consul; Ambassador Bulnes; Tom Keefer, DSPC deputy executive director and Frank Vignuli, DSPC director of operations touring Warehouse E.

His Excellency Felipe Bulnes, the newly appointed Ambassador of Chile to the US, visited the Port in April. He led a roundtable trade-focused discussion with Port management and local Chilean commerce stakeholders on the Delaware River and toured the Port’s coldstore warehouses which contained plenty of Chilean fruit awaiting distribution. Delaware’s port is one of Chile’s leading US trade partners in Chilean fruit and dry bulk cargoes. See - pages 3 & 5.

VISITS BY CHILEAN & PERUVIAN AMBASSADORS

Page 2 P O R T I L L U S T R A T E D — S U M M E R 2 0 1 2 , V O L . 1 9 N O . 1

R E p o w e r S Y S T E M S S E L E C T S D E L A W A R E ’ S P O R T

The Port of Wilmington’s w i n d p o w e r h a n d l i n g capabilities were again recognized when it was selected by REpower Systems SE as its discharge hub and distribution center for wind turbine blades last April. REpower, a Suzlon group company, ranks as the world’s fifth largest wind turbine manufacturing group, specializing in both onshore and offshore wind turbines.

Delaware’s seaport has been handling progressively more complex windpower projects since 2001. The m/v Star Hansa discharged 45 REpower’s MM92 wind turbine blades each of which was over 147’ long.

its supply chain partner” said Gene Bailey, DSPC executive director.

“The Port of Wilmington is a perfect fit for windpower cargo! Delaware boasts a strategic mid-Atlantic location; e x c e l l e n t r a i l a n d h i g h w a y connectivity; ample berth and storage space as well as modern heavy lift equipment. Most importantly, our greatest asset is our skilled, experienced and highly productive workforce. They facilitate the safe and timely delivery of this delicate and high-value project cargo to its destination. Furthermore, Delaware’s unique collaboration between the S t a t e ’ s D e p a r t m e n t s o f Transportation and Public Safety and Homeland Security ensures the timely and cost- effective truck permitting and police escort services for quick and unimpeded movement through Delaware,” Bailey added.

C a C O 3 A R A G O N I T E P R O D U C T S , I N C . C H O O S E S D E L A W A R E

The dry bulk cargo customer base expanded at the Port of Wilmington last March when CaCO3 Aragonite Products (CaCO3), Inc. chose Wilmington, Delaware as its discharge and distribution center for its oolitic aragonite products.

“Bringing our unique product ashore in Delaware and building a processing facility followed a rigorous and competitive due-diligence process,” said Erik Davison, CEO. “We are proud and excited to land product in the First State, which is a significant milestone in our company's growth strategy. We thank our local partners, ICS, and our supplier partners, Ocean Cay Ltd, for collaborating with us on these endeavors, and app rec ia t e t h e leadership exhibited by Governor Markell."

CaCO3 markets, sells and distributes oolitic aragonite, mined in the Bahamas, to commercial customers in North and South America. The product is able to replace some petroleum-based products in the filler markets, and carries a greener footprint than t r a d i t i o n a l l y m i n e d limestone products. It is

used in agriculture for liming, fertilization, and animal feed; in coal-fired plants as a scrubbing agent to significantly reduce SO2 and CO2 emissions; in glass, plastics, pharma and food as a filler and for filtration of water supply.

“We are proud to welcome CaCO 3 Aragoni te to

Measuring over 147’ long, the first of REpower’s wind turbine blades are discharged at the Port of Wilmington, Delaware

All blades were destined for one of the largest wind projects in Pennsylvania, the Twin Ridges Wind Farm in Somerset County. The MM92, REpower’s best-selling wind-turbine model, has a wingspan of over 303 feet and is capable of generating 2.05 megawatts of power at a wind speed of only 27.96 miles per hour. It is ideal for locations with medium or light winds. “We welcome REpower to Delaware’s seaport and are extremely honored to be selected as

m/v Atlantic Express delivered the inaugural shipment of CaCO3’s

aragonite to the Port of Wilmington in March.

Delaware," said Governor Jack Markel l . “When planning its expansion strategy the company had choices on where to expand and it chose Delaware. I am pleased that they recognized the value of Delaware’s uniquely friendly business environment and strategic location.”

“Every day we work to attract new businesses and grow existing companies such as CaCo3 Aragonite,” said Alan Levin, cabinet secretary, director of the Delaware Economic Development Office and board chairman of the Diamond State Port Corp. “I congratulate the company on their expansion and look forward to its future success.”

Page 3

A R G E N T I N E A N J U I C E & F R U I T I M P O R T S O N T H E R I S E

Imports of Argentinean fresh apples and pears and juice concentrates are on the rise at the Port of Wilmington h i g h l i g h t i n g a l o n g partnership between the Port and Argentina’s fruit processors, top-fruit growers and exporters.

The ArgenJuice Group, a co-op of Argentina’s leading shippers of apple and pear juice concentrates, named Wilmington its home-port for the delivery of Patagonian juice in 1991. Last year, the Group established a new import record. Furthermore, the 2012 season is looking very promising as imports are anticipated to match last year’s vessels.

"We are very pleased with the Port of Wilmington, as their excellent logistical capabilities help us service our clients' needs with alacrity and efficiency,"

P O R T I L L U S T R A T E D — S U M M E R 2 0 1 2 , V O L . 1 9 N O . 1

m/v Fuji Bay discharged Argentinean apples and pears as well as apple and pear juice concentrates on May 29.

2 0 1 2 C H I L E A N F R U I T S E A S O N — R O U N D - U P

m/v Atlantic Klipper discharged an all-time Port record in April

Delaware’s port concluded another busy and productive Chilean fruit season with the discharging of m/v Wild Peony on April 18. “It was a very successful season for Pacific Seaways’ shippers, growers and receivers. All of our customers were very pleased with the efficient, timely and direct shipping schedule as well as the overall port logistics,” said Patrick Farrell, Pacific Delaware’s vice president.

The Port received fewer ship calls than the previous season as Pacific Seaways elected to utilize some of S e a t r a d e ’ s l a r g e s t specialized reefer ships to deliver about the same volume of fruit as in the 2010-2011 season. “To better serve our customers’

logistics needs, 30% more fruit was containerized this season,” Farrell added.

m/v Atlantic Klipper, the newest specialized reefer ship afloat, broke the Port’s all-time record for a Chilean cargo discharge when she offloaded 8,956 pallets of fresh fruit on April 9. “This Chilean fruit pallet record onboard m/v Atlantic Klipper accentuates the economies, efficiencies and carrying capacity of ships sailing in the Pacific Seaways service to Wilmington,” Farrell explained.

“Overall fruit quality was good this season,” said Mike Rodgers, director of East Coast Operations at Giumarra International Marketing, a Port tenant. “Supply of grapes from various markets

was abundant in the beginning of the season. Later in the season, volume and demand for Chilean grapes were both good and the season finished very strong,” he explained.

Last winter, the Port constructed Rapid Cooling chambers to assist Chilean

Last winter, Argentinean exporters of fresh apple and pears inaugurated a full program at the Port which was continued this year. This season’s program included seven ship calls by Seatrade’s specialized reefer vessels, as well as additional cargos carried onboard the ArgenJuice Group’s vessels towards the end of the season.

The Argentinean fresh top-fruit season begins in February and concludes in May, while the juice concentrate season runs from April through December.

Argentinean top-fruit growers faced challenging conditions this year, including damaging hailstorms in the growing region early in the season, strikes by the agricultural workers, and low prices in the US market. As a result, some cargo was diverted to more competitive markets in Latin America, Asia and Russia. However, despite these challenges, the volume of Argentinean apples and pears shipped to Wilmington increased by 17% season-over-season.

remarked Baldomero Martins, logistics coordinator of the ArgenJuice Group.

“As we approach our 25th year anniversary of distributing our Argentinean apple and pear juice concentrates through the Port of Wilmington, we truly feel fortunate to have selected the Port as a partner in this journey. The Port’s staff has furnished us with customized and resourceful services, and its personnel have been always available to help resolve any logistics, storage or transportation issue,” said Francisco Prado, vice president of Jugos Del Sur S.A.

fruit customers in extending the shelf-life of post-fumigation grapes. According to Rodgers, Giumarra utilized the Port’s Rapid Cooling service towards the end of this season, which was very valuable in marketing the late green grape deal.

E C O N O M Y ’ S R E C O V E R Y B O O S T S S T E E L H A N D L I N G

of Wilmington is playing an increasingly important role in the supply chain of both imported and domestic steel.

Record Winter Program for SSAB Steel

During the past winter, the Port handled its sixth consecutive SSAB’s Swedish steel program, and its largest! The Port received a record seven ships between December and March, with steel tonnage growing by 14% year-over-year.

SSAB ships high-quality steel plate and steel sheets in coils, both hot and cold rolled, manufactured at its Oxelösund, Sweden steel mill. SSAB’s products are r e n o w n e d f o r t h e i r unparalleled quality. In fact, SSAB’s mill in Oxelösund produces one of the world’s

The volume of commerce passing through seaports reflects the health of the global economy. As post-recession manufacturing is gradually recovering, the Port

A steel slab discharged at the Port of Wilmington for Evraz Claymont Steel

Page 4 P O R T I L L U S T R A T E D — S U M M E R 2 0 1 2 , V O L . 1 9 N O . 1

strongest structural plate.

SSAB’s high-end products arrived at the Port onboard break-bulk vessels, and later were distributed via truck and the Norfolk Southern railroad into the mid-West, Canada and as far as West as Utah.

Steel Slabs Return

In early April, steel slabs returned to the Port after a several year hiatus. The 29.6 ton slabs were barged to Wilmington for shuttle truck delivery to Evraz Claymont Steel’s plate facility in Claymont, DE. ILA 1694-1 provided the labor for unloading the barge and the truck loading. Utilizing the Port’s new 100 ton mobile harbor crane, the Port’s team a c h i e v e d i m p r e s s i v e

D E L A W A R E R I V E R 4 5 F T C H A N N E L D E E P E N I N G P R O J E C T

discharge productivity.

Evraz Claymont Steel is North America's only mini-mill focused on custom discrete plate. The slabs will be rolled and converted into plate for use in various industries.

Specialty Beams

In May, Helmark Steel, a Wilmington based steel fabricator, railed oversized w i d e - f l a n g e d b e a m s produced by Nucor-Yamato’s Armorel , AR mill to the Port for trans loading. Each beam was about 79 feet in length and weighed 6.3 tons. Helmark is a returning customer who previously used the Port’s efficient and c o s t c o m p e t i t i v e trans-loading capability for other oversize cargo.

Delaware’s Congressional delegation, its Governor, regional leaders and Port of Wilmington stakeholders are solidly behind the Delaware River 45ft Main Channel Deepening project. A special thanks to US Senator Tom Carper (D-DE), US Senator C h r i s C o o n s ( D - D E ) , Congressman John Carney (D-DE), Governor Jack Marke l l and Cab inet Member, Director of the D e l a w a r e E c o n o m i c Development Office and DSPC Chairman Alan Levin, for their leadership and support of Delaware’s maritime community.

Their persistent advocacy for this project, coupled with the support of Pennsylvania’s political leadership, its congressional delegation and the financial commitment of $40 mi l l ion by the Philadelphia Regional Port

$16.8 million for the third phase of the project scheduled for this summer – dredging a 12-mile section between the Walt Whitman Bridge in Philadelphia south to Essington, Delaware County, PA.

President Obama included $31 million for the project in his FY2013 budget proposal in April. In response the House Appropr iat ions Subcommittee on Energy and Water included $29.45 million and approved it on June 7, while the Senate A p p r o p r i a t i o n s Subcommittee on Energy and Water Development included the full $31 million in its budget for the project. These funding commitments reaffirm the importance of the project to the future economic development of the region and the nation.

45 ft Project:

Deepening 102 miles from the DE Bay to Philadelphia from 40ft to 45ft

A total of 16 miles completed to date: 4 miles north and 12 miles south of the Port of Wilmington

The current estimated benefit-to-cost ratio is ~ 1.64, with net annualized benefits of more than $13m to the U.S. economy

Estimated project cost: $265 million; completion in 2017

U.S. Senator Chris Coons (D-DE) supported critical infrastructure investment in Delaware’s Port and for the deepening of the Delaware River Main Channel at the Port of Wilmington Maritime Society’s Spring Luncheon on March 30.

As the budget process moves forward, it is anticipated that the final FY 2013 funding for the 45’ project will be passed by the Congress and signed by the President following the November elections.

Authority, helped secure long-awaited and crucial funding for this project and its future viability.

In February, the US Army Corps of Engineers allocated

For info and to subscribe or unsubscribe:

Vered Nohi-Becker Phone: 302-472-7819 vnbecker@port.state.de.us

www.PortofWilmington.com

U P C O M I N G E V E N T S

Golf Classic Sep. 20, 2012 DuPont Country Club Wilmington, Delaware

Page 5

P O R T I L L U S T R A T E D Publication of the

Diamond State Port Corp.

P O R T I L L U S T R A T E D — S U M M E R 2 0 1 2 , V O L . 1 9 N O . 1

R E C E N T E V E N T S

The DSPC bids farewell to Russell Larson, Delaware’s controller general and one of the DSPC’s longest serving and most dedicated board members. Russ will be retiring as controller general effective June 30 after 16 years of service.

A board member since October 2001 and a member of DSPC’s Finance Committee, Russ has provided us with invaluable counsel at board meetings and continuous support with the legislators in Dover.

Thank you for your steadfast dedication to promoting the Port, and as you complete a most distinguished career in public service, we wish you continued success in the future .

Sincerely,

Gene Bailey DSPC Executive Director

T H A N K Y O U & F A R E W E L L

Governor Jack Markell, US Senator Tom Carper (D-DE) and Cabinet Member, Director of the Delaware Economic Development Office and DSPC Chairman Alan Levin welcomed to the First State His Excellency, Felipe Bu lnes , the newly appo inted Ambassador of Chile to the US, at the Experience the Taste of Chile dinner on April 25 at the DuPont Country Club. Governor Markell led a trade mission to Chile last August, meeting with Port customers and Chile’s President Sebastián Piñera.

The Port had the honor of hosting a group of legislators from all three Delaware counties on May 14 for a capabilities presentation and Port tour.

The legislators were especially impressed by the Port’s diverse cargo mix, and its regional economic impact. A constructive discussion between the delegation and the Port’s leadership explored ideas to increase Delaware’s exports and a strategy to secure funding for the long-term development of the Port.

State Representative Helene Keeley (D- South Wilmington), a DSPC board member, helped to organize the visit and welcomed the guests.

(L-R) Roberto Matus, minister counselor, Chilean Embassy; Ambassador Felipe Bulnes; Governor Jack Markell and Robert Palaima, chairman of the Chilean & American Chamber of Commerce which hosted the Experience the Taste of Chile dinner

(L-R) Senator David G. Lawson (R-Marydel); Heather Lehman, constituent liaison; Representative David L. Wilson (R-Bridgeville); Gene Bailey, DSPC executive director; Representative William R. "Bobby" Outten (R-Harrington); Senator Colin R. J. Bonini (R-Dover South) and Representative Harvey R. Kenton (R-Milford) during their visit to the Port.

(L-R) Gene Bailey; Capt. Kathy Moore, USCG Sector Delaware Bay Commander; Jerry Custis, DSPC Manager, Security; Capt. Meredith Austin; Matthew Eskridge, DSPC Security Supervisor and Sylvia Floyd-Kennard, DSPC Director of Security

On May 21, the Port of Wilmington Maritime Society’s Board of Directors and Port officials bid farewell to Capt. Meredith Austin, USCG, who completed her three-year assignment as Commander, US Coast Guard Sector Delaware Bay. Capt. Kathy Moore, who relieved Capt. Austin at a change of command ceremony on May 24, received a warm welcome from the Port community.

Capt. Moore reported from USCG Sector & Air Station Corpus Christi, Texas, where she served as deputy commander.

TASTE OF CHILE DINNER

LEGISLATORS’ VISIT

“HAIL & FAREWELL”