An overview of the US import terminal situation

Ad Ligthart

INTERCEM Americas Miami 29 Nov. – 1 Dec. 2005

• Strong growth in cement consumption• Very large increase in imports• Continuing shortage situation• Strong vertical industry integration• High cement prices which are expected to

hold• Somewhat easier shipping situation

=Substantial activity in the cement import

terminals

Very large increase in cement imports

24.3%-9.1%32.2212008

24.5%3.0%35,4442007

27.6%3.9%34,4092006

27.5%21.3%33,1272005

22.8%17.5%27,3052004

20.7%-3.8%23,2412003

22.3%24,1692002

Import Share (%)Import Growth (%)Imports

Source: Portland Cement Association

US shortage situation

No Shortage Tight Supplies Spot Tight Supplies

Source: Portland Cement Association

A closer look at US import marketsThe South West

2,15 mt (est)

China, Indonesia,Thailand

C a l i f o r n i a

Nevada

Arizona

Utah

Nevada

Import terminals

Cemex, SanDiego

A&A Sacramento(Under construction)

Cement plantsMexico0,12 mt

2,98 mtChina, Indonesia,Thailand, Taiwan

Thailand, Taiwan0,54 mt

Lehigh StocktonCTI StocktonCPC Stockton

Cemex, Richmond (in planning)

Cemex, (RMC) Redwood City

0,45 mt Hawaiian Cement

Philippines

Prod. 11,8mt

Prod. 1,8mt

Prod. 1,0mt

Prod. 0,5mt

Cons. 15,7mt

Cons. 4,8mt

Cons. 1,5mt

Cons. 2,6mt

No Shortage

Tight SuppliesSpot Tight Supplies

Mexico1,1 mt

Cemex Sacramento

CPC Los AngelesCemex Long BeachMitsubishi Long Beach

A closer look at US import marketsThe South West

Prod. 15,10 mt 5,7 mt imported by seaImports 6,91 mt 9 Existing terminals Total 22 mt 2 New terminals coming

Cons. 24,5 mt

Largest constriction: Railroads!

A closer look at US import marketsThe North West

Oregon

Wyoming

Idaho

Washington

M o n t a n a

Import terminals

Cement plants

Prod. 1,1mt

Cons. 0,4mtCons. 2,2mt

Cons. 1,2mtCons. 0,7mt

Cons. 0,5mt

Canada

Canada

0,08 mt

0,81 mt

0,70 mt

0,14 mt

AlaskaGlacier Anchorage

Glacier PortlandAsh Grove Portland(under construction)

Glacier Seattle

Ash Grove Seattle

China, Korea

Taiwan, Korea

Korea

Prod. 1,4mt

Prod. 1,4mtProd. 0,5mt

Prod. 0,0mt

0,60 mt

No Shortage Tight Supplies

Spot Tight Supplies

The North West

Prod. 4,40 mt 1,3 mt imported by seaImports 2,20 mt 3 Existing terminals Total 6,60 mt One new terminal under

construction

Cons. 5,50 mt

Railroad constraints to bring cement further inland

A closer look at US import markets - The Gulf 0,08 mt

Cement plants

Import terminals

Cemex Pensacola

Cons. 0,4mt

Louisiana

Alabama

Miss

issipp

i

Arkansas

T e x a s

OklahomaNew Mexico

Prod. 1,0mt

Southern Concrete Mobile

Ash Grove HoustonCemex Houston

South Coast CementGalveston (Under construction)

Texas LehighCorpus Cristi

Mexico 0,8 mt

Ash Grove / Alamo

Holcim (Globalplex) Reserve

Lafarge, New Orleans

South Louisiana Cement (transshipmen)

China, Colombia, Greece, Korea, Peru, Thailand2,64 mt

Korea, Colombia, China, Egypt, Peru, Spain, Taiwan4,1 mt

Prod. 2,2mt Prod. 0,8mtProd. 0,9mt

Prod. 5,3mt

Prod. 12,5mt

Prod. 0,0mt

Cons. 0,9mt

Cons.15,2mt

Cons.2,2mt

Cons.2,0mt

Cons. 1,3mtCons. 1,1mt

Cons. 1,9mt

No Shortage

Tight Supplies

Spot Tight Supplies

China, Colombia0,62 mt

The Gulf

Prod. 22,70 mt 7,4 mt imported by seaImports 8,20 mt 8 Existing terminals Total 30,90 mt 2 Under construction

Cons. 24,60 mt

Substantial domestic distribution by inland waterways

A closer look at US cement import marketsThe US inland waterway system

Lake Huron

Lake Erie

Lake Ontario

Mic

higa

n

Lake

0

0

200 MI.

200 KM.10050

50 100

Pennsylvania

CT

MA

NJ

RI

MD

S. Carolina

Maine

Louisiana

Alabama

Miss

issipp

i Georgia

Kentucky

TennesseeCarolina

North

NHVT

New York

OhioIllinois Indiana

Missouri

Iowa

Wisconsin

M i c h i g a n

Arkansas

F l o r i d a

T e x a s

Minnesota

Kansas

Nebraska

VirginiaWest

Virginia

Oklahoma

South Dakota

North Dakota

Missouri river

Mississippi river

Ohio river

Intercoastal

Waterway

Interc

oasta

lWate

rway

4 million tpyimports

No Shortage Tight Supplies Spot Tight Supplies

Approx. 45 barge terminals receive cement from riverside cement plants and imports

A closer look at US cement import marketsThe Great Lakes region

Lake Ontario

Lake

Pennsylvania

New York

OhioIllinois Indiana

Wisconsin

M i c h i g a n

Minnesota

Canada0,23 mt

0,7mt

1,07 mt1,25 mt

Over 3 million metric tons shipped by self discharging ships to 23 terminals

No Shortage

Tight Supplies

Spot Tight Supplies

A closer look at US cement import marketsThe South East

Cement plants

Import terminals

S. Carolina

Georgia

N. Carolina

F l o r i d a

Brazil, China, ColombiaDenmark, Greece, Taiwan,Venezuela3,3 mt

China, Denmark, Mexico, Sweden, Turkey, Venezuela2,8 mt

Colombia, Greece0,95 mt

Lafarge, Charleston

Lehigh, Jacksonville

Savannah (Argos)

Colombia 0,05 mt

Lehigh, Port CanaveralRinker, Port Canaveral

Cemex, WestPalm Beach

Lehigh, Fort LauderdaleRinker, Fort Lauderdale

Florida Rock, TampaAalborg, Tampa (under construction)Holcim, TampaCemex, TampaTitan, Tampa(expansion with slag)

Cons. 3,2mt

Cons. 1,9mt

Cons. 12,3mt

Cons. 4,7mt

Prod. 2,6mt

Prod. 7,8mt

Prod. 3,8mt

Prod. 0mtNo Shortage

Tight Supplies

Spot Tight Supplies

Eastern Cement, Port Manatee

A closer look at US cement import marketsThe South East

Prod. 14,40 mt 6,1 mt imported by seaImports 6,10 mt 12 Existing terminals Total 20,50 mt 1 New terminal

Cons. 22,10 mt

A closer look at US cement import marketsThe North East

VT

Maine

New YorkMA

RI

NH

CT

NJ

Virginia

Pennsylvania

Cement plants

Import terminals

Cons. 3,4mt

Prod. 2,2mt

Canada 1,07 mt

Riverside Construction Materials (Silvi), Bristol

Lehigh (Norval), New YorkNew York Cement Co. (Quadrozzi), New YorkEssex (Titan), Newark

Lehigh Providence

Coastal Distribution

Canada, China, Venezuela1,0 mt

Greece, Venezuela, Norway 1,0 mt

Thailand, Bulgaria, France 1,15 mt

Coastal Distribution +Imports

Cons. 3,2mt

Cons. 0,13mtCons.

0,2mt

Cons. 0,2mt

Cons. 0,5mt

Cons. 2,9mt

Cons. 2,0mt

Cons. 1,2mt

Prod. 1,8mt

Prod. 6,4mt

Prod. 0mt

Prod. 1,0mt

Prod. 0,7mtMLCons. 1,6mt

No Shortage

Tight Supplies

Spot Tight Supplies

A closer look at US cement import marketsThe North East

Prod. 12,1 mt 3,1 mt imported by seaImports 4,2 mt 6-8 Existing terminals Total 16,3 mt No new terminals activity

Cons. 15,3 mt

New Terminal ConstructionWest Coast• Sacramento New terminal for A&A• Sacramento New terminal for Cemex (RMC)• Richmond Expansion Cemex terminalGulf Area• Houston Ash Grove / Alamo• Galveston South Coast CementEast Coast• Tampa Titan (addition of slag grinding plant)• Tampa Aalborg (white cement)

Ongoing upgrades of many terminalsSeveral other terminal projects considered on all coasts

50.000 tons Flat storage500 tph unloading capacity

A&A terminal – Sacramento – new terminal

Cemex (RMC) Sacramento - New terminal

50.000 tons dome - High capacity unloaderTruck & railcar - Aggregates distribution Readymix plant

Ash Grove / Alamo, Houston

Largest terminal in the US

100.000 silo terminal1.500 tph ship unloading

South Coast Cement, GalvestonNew terminal

80.000 tons flat storage 800 tph ship unloading capacityCapability for truck, rail andbarge distribution

Thank you!