Presentation to Port Commissioners April 20, 2005 – Port Canaveral, FL

1. Presentation to Port Commissioners April 20, 2005 – Port Canaveral, FL Port Canaveral Short Sea Shipping Probability Study Maritime Transport & Logistics Advisors, LLC Ft. Lauderdale, FL www.maritimeadvisors.com

2. MTLA Team Project Leader – Mark Yonge

3. Port Canaveral Short Sea Shipping Probability Study Purpose of the study The purpose of the study is to examine the current status of short-sea shipping initiatives in this country and how such initiatives impact Port Canaveral, Florida today and, should such initiatives be successful, in the future. (Appendix 1 – Scope of Work)

4. Port Canaveral Short Sea Shipping Probability Study Methodology • Literature review of current research • Analysis • Interviews and a series of questionnaires of • Port Authorities & Terminal Operators (13) • Marine Operators (19) • Motor Carriers (2 Associations & 2 Motor Carriers) • FEC Railroad • Florida Department of Transportation • Florida Ports Council • Combined expertise of industry experts • Critical decision Factors were developed • A Probability Decision Tool was developed • A probability score was developed with the Decision Tool

5. Critical Decision Factors

6. Short Sea Shipping Tool Methodology • Each Critical Decision Factor and it’s sub-categories were weighted • An overall “Probability Factor” was then calculated for each sub-category for the entire analysis. The Probability Factor was calculated by multiplying the “Sub-Category Weight” for each sub-category within the Decision Factor by its Critical Decision Factor Weight • Present condition and future potential scores were assigned as follows: • 5 – Excellent • 4 – Very Good • 3 – Good • 2 – Fair • 1 – Poor

7. Short Sea Shipping Tool (Partial)

8. Short Sea Shipping Probability Decision Tool – Results The Short Sea Shipping Probability Decision Tool resulted in scores of: • CPA Present Condition 2.53 (Fair to Good) • Future Potential 3.99 (Very Good) These scores translate to a: • Present Condition probability 50.6% • Future Potential probability 79.9%. * A comparison between the current and future potential scores indicate that CPA has the potential to improve their likelihood of initiating a successful Short Sea Shipping initiative if actions are implemented within the sub-categories that have been identified as critical.

9. Port Canaveral Short Sea Shipping Probability Study Results of the study (High Level indication) • Port Canaveral has a Fair to Good Short Sea Shipping Probability as it exists today • Port Canaveral has a Very Good Short Sea Shipping Probability in the future if action is taken to improve identified Critical Factors.

10. Significant interview responses • 12 of 19 Marine Carriers have Coastal, Short Sea or Ferry projects in progress • 9 of 19 Marine Carriers are presently engaged in Short Sea Shipping • 14 out of 19 Marine Carriers see demand for an East-Central Florida Short Sea Shipping hub/port location such as Port Canaveral • 16 out of 19 Marine carriers would consider making landside investments to build a short sea shipping service • 10 out of 11 Port/Terminal Operators consider Short Sea Shipping probable and desirable for their facilities • Economic Impact formula used by one of the ports: “1 new longshore job = 4-5 new ancillary jobs”

11. Conclusions Hard FACTS: • A freight capacity crunch of unprecedented dimensions is predicted for the next decade, and just building more roads or expanding rail capacity to meet projected demand are simply not viable options, even if they were possible. • Short Sea Shipping continues to emerge as a sensible alternative and complement to truck and rail modes.

12. Conclusions • Organizations like AAPA and the I-95 Corridor Coalition are actively pursuing steps to support SSS • Transportation user and provider interest in Port Canaveral found to be very positive • Transportation providers have indicated positive interest in partnering and willingness to invest in new infrastructure • Positive Factors for Port Canaveral are: • Proximity to major trade lanes and markets • Lack of capacity at other Florida ports • Excellent Highway Access (Intermodal Connectors) • FEC’s positive attitude towards improved rail service to CPA • Cruise Passenger port/destination with capacity to handle new Domestic Passenger traffic

13. Conclusions • Commercial and Public initiators of current Short Sea Shipping services and transportation planners are achieving success – • some utilizing entrepreneurial funding where demand is adequate for a new venture • some utilizing government funding (State & Federal) to help sustain a new operation in its infancy to assist in its success. • Florida’s Strategic Intermodal System (SIS) has the potential to be an important tool and benefit for Port Canaveral and its commercial partners.

14. Recommendations Initiate study/s to next level/s in progressive steps: • Develop a focused marketing and business plan strategy • Identify Specific business opportunities including partnering opportunities with other ports, ocean carriers & motor carriers • Identify infrastructure investment needs • Maintain participation, knowledge and action – Short Sea Shipping Coalitions, Co-Operatives & legislative activity • Establish co-coordinated liaison with Florida DOT, FLA SIS & U.S. DOT Office of Intermodalism, Federal Highway Administration an MARAD

15. Port Canaveral Short Sea Shipping Probability Study Thank You Maritime Transport & Logistics Advisors, LLC Ft. Lauderdale, FL www.maritimeadvisors.com