South Brooklyn Port and Rail Reactivation

1. South Brooklyn Port and Rail Reactivation Preserving New York's Marine Heritage March 6th, 2014

2. Agenda • Context • Brooklyn Army Terminal • 65th Street Rail yard and float bridges • South Brooklyn Marine Terminal • Red Hook Container Terminal

3. PortNYC: Context

4. NYC Port Growth – 19th Century In the 19th Century New York dominated US maritime trade • Captured international trade, coastwise trade and hinterland trade • Technological innovations • Propulsion systems • Vessel design • Business innovations • Packet boats • Cotton trade • Finance and insurance

5. Decline of the NYC Ports – Early 20th Century • Activity peaked in 1929 at 27 million long tons of cargo and by 1933, cargo volume fell 50% due to factors such as • Depression • Coastal trade lost to railways, then highways • Competition from other East Coast Ports • Port growth: 1935-1956 • Philadelphia: 276% • Norfolk: 214% • Baltimore: 198% • New York: 59%

6. Decline of the NYC Ports– Mid 20th century Containerization changed the maritime model • Finger piers and inner city port locations became obsolete • Large, efficient ports become essential Port Elizabeth, August 16, 1962 Port Newark, April 6, 1956

7. Decline of the NYC Ports – Impacts The collapse of the New York Ports was swift and devastating • Cargo handling moved to NJ - Newark’s cargo tonnage doubled between 1956 and 1960 • 1960: 75% of cargo came into Brooklyn and Manhattan • 1966: 30% of cargo came into New Jersey • 1970: 63% of cargo came into New Jersey • NYC Tugboat fleet shrank nearly 40% between 1929 and 1975 • Labor impacts resulted in many people out of work • In 1963-63, Manhattan employers used 1.4 million days of longshore labor. • Hiring slid below a million in 1967-68, • Reached 350,000 in 1970-71, and • Dropped to 127,041 in 1975-76 – a 91 percent decline in longshore • Total employment at Manhattan and Brooklyn marine cargo-handling businesses, fell more than 60% between 1964 and 1976 • Hundreds of acres of shoreline suddenly vacant or underutilized, • Bush Terminal / Sunset Park • Red Hook • Stapleton • Long Island City

8. However, New York City has comparative advantages that can be leveraged over other locations… • Enormous local consumer market: • New York City has 8.2 million people with a GDP of $576 billion • Tri-state region has 32 million people with GDP of $1.8 trillion • Approximately 50 million tourists per year add to customer base • The PortNYC is part of the nation’s 3rd busiest seaport by import volume (The Port of NY/NJ) • There is more international traffic through NYC airports than any other US metropolitan area • NYC has a locational “prestige” • Lifestyle, international reputation • Access to a large workforce and • skilled labor • Exceptional public transportation • NYC has a diversified population base • 35.7% of New Yorkers are foreign-born 8

9. Background: Regional Commodity Flows Trends in maritime shipping will allow New York and, in particular, Brooklyn to recapture its maritime economy Recent trends (2007): • 399 million total tons • 30% inbound • 23% outbound • 19% intraregional • 28% through • By mode: • 86% truck • 11% water • 2% rail • 1% air • By value • $1.34 trillion total • Locally-driven: 75% traveled within 500 miles of the region • Northern NJ • NYS • Eastern PA Brooklyn Navy Yard Newark/ Port Elizabeth Red Hook Sunset Park Howland Hook Atlantic Ocean New York freight terminals

10. Economic Impact of Maritime Facilities • Gateway to global markets for NYC export businesses • 20 million tons, $40 billion value • Access to import materials and products for NYC businesses • 70 million tons, $140 billion value • Fuel-efficient “green” domestic transportation • 60 million tons moved, saving 7 million gallons of fuel) • In NYC alone, over 9,000 direct, 31,800 total jobs • $2.1 billion in personal income • $6.8 billion in business revenues • $1.3 billion in fed/state/local tax revenues

11. Once again, the maritime industry is evolving : • The expansion of the Panama Canal has created new challenges and opportunities • Bayonne Bridge Draft Restrictions • China Manufacturing Boom • Expanding Asia – Americas Routing Options • All-water Asia to US East Coast via Suez and Panama Canals

12. 3rd largest port in the nations Average annual growth rate of 7% 54% increase in container trades since 2004 Over 90% of imported goods arrive by ocean-going vessels More than 5,000 deep-draft vessel calls in 2005 Dominated by tankers and container vessels Support services derived by ocean-going vessels carrying capacity and ports of call Large tug and barge fleet PortNYC Facts

13. East of Hudson Freight • Challenge: • Limited space for typical distribution centers, but consumer demand requires distribution within the City • Higher freight costs driven by fuel costs, tolls, taxes Higher environmental costs driven by climate change • Solution: • Improve shipping to East of Hudson locations • Ship: Low sulfur diesel • Marine terminal close to consumer market • Zero or low emission yard equipment • Low emission truck • Follow truck routes

14. Improvements to the South Brooklyn Rail System

15. 65th Street Cross Harbor Float Bridge and Bay Ridge Line • Cross Harbor Float Bridge connects rail cars East of Hudson to NJ and beyond via a float bridge and barge • Reactivated in 2012 • 24 acres • 20 carspots (65’ carspots) • Operated by NYNJR

16. South Brooklyn Marine Terminal (SBMT) Joint Public and Private Investment • General Cargo Facility • Facility rehab completed in 2012 • Marketing to break bulk operators • Sims Municipal Recycling • Brand new municipal scrap-metal recycling facility, to be complete in August 2013 • 100% of City’s metal, glass, and plastic recyclables will be handled by barge and truck • Residue to be removed by rail

17. MARINE INFRASTRUCTURE - SBMT • 39thSt Pier, two docking positions: • West face: ~700 linear feet; 33 feet depth (after dredging) • North face: ~500 linear feet; 25 ft depth • South face improvements to come

18. FIRST ON-DOCK RAIL YARD EAST OF THE HUDSON • Capacity • 39thSt Pier • 784’ – 12 carspots (65’ carspot) • 515’ – 7 carspots (65’ carspot) • 2nd Ave Sidings • 620’ x 2 – 12 carspots (93’ carspot) • South Brooklyn Railway Connection • 750’ – 11 carspots (65’ carspot) 2nd Ave sidings 39th St Pier siding Laying new rail along First Avenue

19. SIMS Municipal Recycling • Opened in December 2013 • Handles all NYC’s metal, glass, and plastic • Buildings are made almost entirely of recycled steel. • Buildings, wharf, recycling equipment, and electrical substations raised 4’ to mitigate sea level rise and storm surges. • 600 kW photovoltaic (solar power) installation. • Stormwater managed with bio-swales, ponds and other landscape features. • Three reefs built off the west end of the pier to provide habitat for marine life.

20. Red Hook Container Terminal (RHCT) • 65.6 acres in Red Hook, Brooklyn operated by Red Hook Container Terminal Inc. • RHCT can handle containerized, ro/ro and breakbulk cargo. • 5 active container cranes • Operational headquarters for Phoenix Beverages, supplying all of the Heineken to the NYC, Long Island, and Westchester consumer markets!

21. Phoenix Beverages at RHCT: Port and Park • Ships carrying containers of beer from Europe and the Caribbean call at Pier 10 in Red Hook instead of at Port Elizabeth (CMA and Seaboard) • Phoenix strips containers inside Piers 7 and 11 and distribute products for local consumption • Phoenix has committed to convert its local distribution fleet to CNG • This will reduce 20,000 truck trips annually • It represents a 20 percent increase in container movement in the Port of Red Hook Pier 10

22. Partnerships • Job and internships opportunities • Research and consulting assignments • Cradle to Post-secondary education (building the next generation of supply chain managers and public officials)