gregory v. iannarelli, chief counsel, philadelphia...
TRANSCRIPT
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Southport – A Unique Perspective on P3s
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Container capacity peaking
Channel deepening
nearing completion
Panama Canal expansion
nearing completion
Auto capacity peaking
Energy industry looking to
develop an “Energy Hub”
Background Noise
Expansion Considerations
Snapshot in Time 2014 - 2015
3rd time to market
No Plan
Fragmented Vision
Container only at
Southport!
No Auto at Southport!
No Energy at Southport!
Energy only at Southport!
Time for a change of leadership
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Southport – An Ambitious Project!
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Considerations
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Competing visions
• Container
• Auto
• Energy
• Warehousing
Managing P3 perceptions
• Private sector pay for everything
• Public sector provides land
• 3rd time to market
Change in administration
Change in port leadership
Minimizing risk
Managing timeframes
Balancing flavor of solicitation
• Technical/Financial/Legal
Outside constraints to revenue streams
Understanding site specific challenges
Sovereign matters
• Ownership
• Indemnification
• Venue
• Election & Funding cycles
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Mitigation Methodology
Strong procurement structure
Effective communication to bidders
• Public procurement constraints
Stipend program
Non disclosure agreements
Stay organized
Manage expectations
• Realistic timeframes
• Realistic funding expectations
• Realistic forecasting
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Internal team stability
Hire the right outside consultants
Establish goals
Manage message
• Public sector
• Private sector
• Public at large
• Market
Market study
Dynamic planning
Financial modeling
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Preliminary Procurement Schedule
Month
ActivityWeek
Beginning
Market Analysis 10
Procurement Strategy 8
Informal Industry Feedback 2
Develop RFQ 7
RFQ Process 8
SOQ Evaluation 4
RFP Development (ITP & Agreement) 12
RFP Process 26
Evaluation 6
Commercial Close 8
Financial Close 8
Jul
25
, 2
01
6
Au
g 2
2,
20
16
Sep
19
, 2
01
6
Oct
17
, 2
01
6
Mar
07
, 2
01
6
Ap
r 0
4,
20
16
May
02
, 2
01
6
May
30
, 2
01
6
Jun
27
, 2
01
6
Oct
19
, 2
01
5
No
v 1
6,
20
15
De
c 1
4,
20
15
Jan
11
, 2
01
6
Feb
08
, 2
01
6
Jun
01
, 2
01
5
Jun
29
, 2
01
5
Jul
27
, 2
01
5
Au
g 2
4,
20
15
Sep
21
, 2
01
5
6 16 17 18 1913 14 151 2 3 4 5 7 8 9 10 11 12
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Request for Expression of Interest
Request for Qualifications
Shortlisting
Request for Proposals
-> Things go sideways
Suspension of solicitation
Governor commits $300 million
Port Development Plan is born!
Key Points:Core structure of solicitation:
Effective Use of Public Private Partnerships
Not for the faint of heart
Deviation was not taken lightly
• Preservation of cargo to the port
• Quickest way to position the port
• Competition is fierce
• Cost to borrow
Fundamental shift from Commonwealth
• REI – October 1, 2014
• PDP – November 22, 2016
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Philadelphia Regional Port Authority
Port Development Plan
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Packer Avenue Marine Terminal
Philadelphia Auto Port
Tioga Marine Terminal
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Development Stage | Port Development Plan
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PACKER AVENUEMARINE TERMINAL
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August 2016 > Neo-panamax vessels begin calling PRPA’s Packer Avenue Marine Terminal.
Current Vessel Capability | 9,000 TEUs
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Serviced by two class-one railroads:
Inbound Philadelphia Hinterland Cargo*
*Year 2015
**Mid-Atlantic Ports include New York, Newark, Delaware, Philadelphia, Baltimore and Boston.
Total inbound loaded
containers moving within 200
miles of the Port of
Philadelphia.
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o 5th Largest Metropolitan Area
o Over 300 Distribution Centers within
the PRPA’s immediate hinterland
“Lehigh Valley is the inland
empire of the East Coast.”- David Eagen
Head of Industrial & Logistics Research for the Americas, CBRE
(Real Estate services)
The Journal of Commerce - Oct. 17, 2016 edition
Distribution Centers | Imports
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Present
Terminal Area 106 acres
Capacity 480,000 TEUs
Warehouse Capacity 460,000 sq. ft. (on-dock)
Reefer Plugs 2210
Cranes
2 · Post-Panamax container cranes (17 wide)
2 · Panamax container cranes (14 wide)
2 · Panamax container cranes (13 wide)
1 · Heavycontainer crane
Number/Size of Berths3 · 1,000 ft. Berths
1 · Ro/Ro Berths
Berth Depth at MLW3 · 42 ft.
1 · 38 ft. Ro/Ro
Channel Depth* 40 ft.
*The Delaware River has a 6 foot (1.83 meter) tide
PACKER AVENUEMARINE TERMINAL
$266 Million Investment$188 Million Commonwealth Investment
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2017
Terminal Area 146 acres (+40 acres)
Capacity 552,000 TEUs
Warehouse Capacity 460,000 sq. ft. (on-dock)
Reefer Plugs 2210
Cranes
2 · Super Post-Panamax container cranes (23 wide)
2 · Post-Panamax container cranes (17 wide)
2 · Panamax container cranes (14 wide)
1 · Panamax container cranes (13 wide)
Number/Size of Berths3 · 1,000 ft. Berths
1 · Ro/Ro Berths
Berth Depth at MLW
1 · 45 ft.
2 · 42 ft.
1 · 38 ft. Ro/Ro
Channel Depth* 45 ft.
PACKER AVENUEMARINE TERMINAL
$266 Million Investment$188 Million Commonwealth Investment
*The Delaware River has a 6 foot (1.83 meter) tideGreen= New Super Post-Panamax cranes; Red= Removal of old cranes and warehouses.
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2018-2019
Terminal Area 170 acres (+24 acres)
Capacity 900,000 TEUs
Warehouse Capacity90,000 sq. ft. (on-dock)
365,000 sq. ft. (on-dock)
Reefer Plugs 2210+
Cranes
4 · Super Post-Panamax container cranes (23 wide)
2 · Post-Panamax container cranes (17 wide)
1 · Panamax container cranes (14 wide)
Number/Size of Berths3 · 1,000 ft. Berths
1 · Ro/Ro Berths
Berth Depth at MLW3 · 45 ft.
1 · 38 ft. Ro/Ro
Channel Depth* 45 ft.
PACKER AVENUEMARINE TERMINAL
$266 Million Investment$188 Million Commonwealth Investment
*The Delaware River has a 6 foot (1.83 meter) tideGreen= New Super Post-Panamax cranes; Red= Removal of old cranes and warehouses.
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TIOGA MARINE TERMINAL
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Port Development Plan | Tioga Marine Terminal $12 Million
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TIOGA MARINE TERMINAL
Present 2017 Future
Warehouse Capacity 300,000 sq. ft. (food grade) 397,500 sq. ft. (food grade) 397,500 sq. ft. (food grade)
Cranes2 · Panamax container cranes (13 wide)
1 · Mobile Harbor Crane2 · Panamax container cranes (13 wide)
2 · Mobile Harbor Cranes2 · Mobile Harbor Crane
Support Structure Trailer Park Modular Building Modular Building
$12 Million Investment | Tioga Marine Terminal
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Port Development Plan | Philadelphia Auto Port $93 Million
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$93 Million Investment | Philadelphia Auto Port
Present 2017 Future
Capacity 155,000 Autos (Import) 300,000 Autos (Import/Export) 350,000 Autos (Import/Export)
Terminal Area 149 acres 235 acres (+116 acres) 240 acres (+5 acres)
Number/Size of Berths 1 Ro/Ro Berths 2 Ro/Ro Berths 2 Ro/Ro Berths
PHILADELPHIAAUTO PORT
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PORT DEVELOPMENT PLAN
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Growth at Capacity
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Key Metrics of Success
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$300 Million Investment
Preserved Cargo
Generated Capacity
Foundation for sustained expansion
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Thank you!
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