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Port of Hueneme logistics park development concept October 2019 We make cargo move Briefing report - AAPA Maritime Economic Development committee, Norfolk
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Page 1: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

Port of Hueneme

logistics park

development concept –

October 2019

We make cargo move

Briefing report -

AAPA Maritime

Economic

Development

committee,

Norfolk

Page 2: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

Mission

To be the preferred port for

specialized cargo and provide the

maximum possible economic

and social benefits to our

community and industries served.

Vision

To operate as a self-supporting

Port that enforces the principles of

sound public stewardship

maximizing the potential of

maritime-related commerce and

regional economic benefit.

VISION AND

MISSION

Page 3: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

VV

• New Global Shipping Line Alliances – consolidating, more

port competition

• Sizes of new vessels – growing larger, requiring more

infrastructure, land to service them

• Global Trade: will double by 2030

• NET RESULT: to stay competitive, ports need to:

• service larger ships

• Process more cargo, faster

• and have deeper reach into the hinterland

• WHICH REQUIRES: MORE LAND

Port environment:dynamic changes underway

Page 4: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

Southern California

counties and their

gateway ports:

• San Diego County:

Port of San Diego

• Los Angeles County:

Ports of Los Angeles

and Long Beach

• Ventura County:

Port Hueneme

Page 5: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

TYPES

CARGO

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

FY2006

FY2007

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

HISTORIC CARGO THROUGHPUT

autos 50%

fruit 24%

fertilizer2%

property mgmt13%

others 11%

REVENUE TONNAGE BY SEGMENT

autos19%

bananas39%

fruit 18%

general cargo 7%

fertilizer9%

other7%

CARGO TONNAGE BY SEGMENT

UP 23%

Ag Exports Up 42%!

Page 6: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

COMMERCE RESULTS

ECONOMIC PROSPERITY

JOBS44%

INCREASE

SINCE

2013

10

,22

6

2013

13

,63

3

2015

15

,834

2018

$5

3.4

M

2013

$9

3M

2015

$119

M

2018

$7

99

.4M

2013

$1

.5B

2015

$1

.7B

2018

TAX

REVENUE123% INCREASE

SINCE 2013

TOTAL

ECONOMIC

ACTIVITY113% INCREASE

SINCE 2013

Page 7: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

WORLD CLASSDISTRIBUTION CENTERS

MAJOR

OXNARD

PRESENCE BY

POH CLIENTS

Page 8: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

COMMUNITY

SUSTAINABILITY

AIR

QUALITY

SOIL &

SEDIMENT

ENERGY

MANAGEMENT

CLIMATE

CHANGE

MARINE

RESOURCES

WATER

QUALITY

ENVIRONMENTALFRAMEWORK

Page 9: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

#CommittedtoEnvironmentGREEN PORT

GREEN MARINE CERTIFIED 2017 & 2018

• First port in California

COMPREHENSIVE ENVIROMENTAL

MANAGEMENT AWARD 2018

• American Association of Port Authorities (AAPA)

• Comprehensive Environmental Program Category

GREENEST US PORT 2017• International Shipping Summit

ENVIRONMENTAL STEWARDSHIP AWARD 2017

• Ventura County Board of Supervisors

Page 10: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

www.portofhueneme.orgPort of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting 10

Progress to date

• Environmental stakeholders

‒ Numerous meetings to discuss concerns, needs, opportunities

‒ Developed general environmental project standards

‒ Identified community investment areas to address environmental needs (eg, nature pathway to

wetlands)

‒ Environmental groups now supportive of the development concept

• Community stakeholders

‒ Extensive discussion with city officials to determine general community needs

‒ Incorporated community sports park development area into site to meet community needs

• Port clients/potential buyers

‒ Numerous meetings to gauge interest and commitment by port clients

‒ Indications strongly indicating logistics park will be oversubscribed

• City of Oxnard

‒ ‘Reintroduced’ the Port of Hueneme/Oxnard Harbor District to the county and city as a major

economic engine, environmental leader and partner in economic development

‒ Exploring ways to fast track logistics park project

‒ Ongoing analysis on very positive economic, environmental and community quality of life impacts

Page 11: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

www.portofhueneme.orgPort of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting 11

OUTREACHCity

• Mayor Flynn/Customers Brown Bag Lunch

• City Council Members

• City of Oxnard Management

• City of Port Hueneme

County

• County CEO & Supervisors Long and Zaragoza

• Lafco

• EDC-VC

• VCTC

State

• State Tide Lands

• Coastal Commission

• Coastal Conservancy

Federal

• Naval Base Ventura County

• Nature Conservancy (Federal non-profit)

• CI National Marine Sanctuary

Community

• CAUSE

• Ormond Beach Task Force and Workshops

• Godwin’s – Saviers Design team

• Port Hueneme, Save the Beach

• Latin Business Association

• Labor Groups

PR

OP

ER

TY

OW

NE

RS

Page 12: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

www.portofhueneme.orgPort of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting 12

PROCESS & TIMELINE

“TEMPORARY” PROJECT- 34 acres

Outreach and Education Process

On-going

City, TNC, Coastal Conservancy, Navy

Mtg on

November 2018

MND Prepared for the Site 2019

After Public Comments EIR is

now being prepared

Approvals City Council, Planning Commission After EIR Planning Com, & Port June 2020

Property use starts for GLOVIS Auto

Business September 2020

Page 13: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

www.portofhueneme.orgPort of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting 13

Draft general development concept plan

Page 14: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

www.portofhueneme.orgPort of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting 14

Perimeter park wall

Port of Hueneme Logistic Park

Perimeter Treatment “Security Wall & Fencing, Landscaping and Lighting” – Community Outreach

Port of Hueneme Security Wall and Landscaping

Port of Hueneme Perimeter Treatment adjacent to

Residential Development.

Page 15: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

www.portofhueneme.orgPort of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting 15

Riverside renewable energy example

Philadelphia, Delaware River

Environmental standard goal to be met – LEED Platinum!

Green Development – Proposed standard for Port of Hueneme Logistics Park

About Riverside Renewable Energy

•Located in Gloucester City, New Jersey

•All electricity is 100% Solar Energy.

•Largest rooftop solar array in North America!

Facility Scope

•Capacity of 9 mega watts, creates 11 million-

kilowatt hours pa renewable energy

•Photovoltaic solar panels cover 1.1 MILLION sf

of rooftop space

Benefits to the Environment

•Capturing 9 Mega Watts of clean energy yearly

equivalent to:

•Eliminating 16 MILLION pounds of

CO2 emissions

•Removing 1,200 cars from roads

•Enough energy to power 1,500 homes

•Planting 400,000 trees (2,300 acres)

Page 16: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

www.portofhueneme.orgPort of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting 16

Community stakeholders – amenities that enhance the viability of the logistics

park development concept

Port of Hueneme Logistic Park

The following are some general conceptual renderings of what

this area may eventually look

Like.

This rendering shows the type of ‘green’ statement the corner of

East Hueneme and Olds roads could look like.

Envisage a semi-circle of pods (i.e., stores) with

green space between them that leads to the back and the

sports fields.

If you truly want to get creatively

‘green’, the service

center could re-use shipping

containers, like these in

Amsterdam.

Page 17: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

www.portofhueneme.orgPort of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting 17

Community stakeholders – amenities that enhance the viability of the logistics

park development concept

Port of Hueneme Logistic Park

Restaurants and amenities to service workers at the logistics park and the

community through various service and entertainment related tenants at the

community sports center. Example below: Charcoal Restaurant, Wynwood

District, Miami, Florida – restaurant facility is made from cargo containers.

Page 18: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

www.portofhueneme.orgPort of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting 18

• LAFCO/CEQA

‒ Hired specialists consultants to

navigate permitting process

through the political landscape

‒ Permitting time frame for project

estimated to take four years

‒ Strategies being explored to

reduce this time

‒ Could take up to $5 million and

five years to obtain

Timing

Page 19: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

www.portofhueneme.orgPort of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting 19

• AECOM developed preliminary site plan

• Numerous planning issues and challenges

resolved from rail access for entire site to

incorporating community sports park

• Preliminary land development cost

estimates: $32 million +/-

Preliminary development cost estimates and land use plan

Page 20: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

www.portofhueneme.orgPort of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting 20

Financial implications

Potential development cost numbers (general estimates)

Permitting: $4,000,000 - $5,000,000

Rail: $4,000,000 - $5,000,000

Development costs: $33,000,000 -$35,000,000

Amenities : $8,000,000 -$10,000,000

Possible sub-total: $50,000,000 +/-

Land: To be determined

Potential soft, finance costs:

$7,500,000 +/-

Potential project costs: $180-$200 million

Property tax assessment and county revenues?

CONFIDENTIALITY NOTICE: All material presented in this presentation is compiled from sources believed to be reliable and current, but accuracy cannot be

guaranteed. The information contained in this presentation is not to be construed as an offer to buy or sell any financial instruments, property or interests in a

property or leasehold. It is not our intention to state, indicate or imply in any manner whatsoever that current or past results are indicative of future profitability or

expectations of profitability and capital appreciation. As with all investments there are associated inherent risks in investing in property. Please obtain and

review all financial material carefully before investing. This presentation may contain proprietary and confidential information of Aegir LLC. Circulation,

disclosure or dissemination of all or any part of this presentation to any unauthorised persons is prohibited as is unauthorised reproduction or distribution of all

or any part of this presentation.

Page 21: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

www.portofhueneme.orgPort of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting 21

Challenges

• Timing

‒ Entitlements take up to five years; development one

• Entitlements:

‒ Entitlements funding completely at risk

‒ Port - only entity with political capital to obtain them for a project of this

magnitude

• Funding:

‒ Phase 1: funding for entitlements – this is the only risk; there is no market risk

‒ Phase 2: with entitlements, institutional money will be forthcoming and

inexpensive

• Amenities:

‒ Community amenities’ costs should not take proposed logistics park into

realm of financial unfeasibility

Page 22: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

www.portofhueneme.orgPort of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting 22

Challenges (continued)

• Pricing:

‒ End users - sophisticated, operate under very stringent financial standards,

build similar facilities world wide

‒ Therefore, development costs of every element in the process will be

‘commoditised’

‒ In this market, project will not support layers of costs

‒ Alternatives? OTHER PORTS

• Development goals:

‒ Merchant builders, short term investors versus the port’s, which is to satisfy

clients in the shortest possible time for the long-term

‒ Highest profit possible versus greatest economic impact to community and

long-term competitive viability for the port

• Ownership issues and objectives:

‒ Control of entity required

‒ Transparency requirements by the port

Page 23: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

www.portofhueneme.orgPort of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting 23

Summary

Questions & Answers

Page 24: Briefing report - Port of Hueneme logistics parkaapa.files.cms-plus.com/POH_AAPA_MEDC_141019.pdf · This presentation may contain proprietary and confidential information of Aegir

www.portofhueneme.orgPort of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting 24

We Make Cargo Move

805-488-3877

www.portofhueneme.org


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