What’s New at Port Freeport

Port Commission

John Hoss

Ravi K.Singhania

Paul Kresta

Rudy Santos Shane Pirtle

Bill Terry

Two Years Ago

PRESENT

Current Capital Projects

Project Est. Completion Date

Velasco Phase 2 Area I – 3.5 acres COMPLETED

Dock 5 Trench Drain Repairs COMPLETED

Berth 5 Mooring Improvements 09/2015

Berth 7 Backland Paving – 20 acres COMPLETED

Turning Basin Road Widen and Overlay COMPLETED

Parcel 25 Asphalt paving & Drainage COMPLETED

Administration Building 02/2016

Dock 2 Floodwall Modification / 408 Permit 06/2016

Estimated Total Cost: $40 million

Project Est. Completion Date

Pete Schaff Repairs 2015

Parcel 19 Stabilization 2016

Transit Shed 2 Demolition 2016

Parcel 14 Development 2017

• Rail, Open Storage, Warehousing

Continuation of Velasco Terminal Build Out 2019

Pump Station Outfall, Backlands Area Development, Berths 8 & 9,

Gate 12, 3 Container Cranes and Upgrade Power Grid

Freeport Harbor Channel Improvement Project2019

Estimated Total Cost: $250 + million

Future Capital Projects

Harbor Volume Outlook

New Business

Procurement of Container Cranes

MSC/Chiquita

Tenaris

Hoegh Autoliner New Service – June 2015

General Motors

ARI Chiquita Brands Dole Fresh Fruit MSC Hoegh Autoliners Mammoet Tenaris Vulcan Materials

Key Inter-Harbor Customers

BASF DOW Chemical Freeport LNG Phillips 66 Enterprise Kirby Inland Marine Zachry/CB&I

Key Channel Customers

0

500

1000

1500

Vessel Calls – Freeport Harbor Channel

New Administration Building

0

1

2

3

4

5

6

7

8

9

10



Highlights:

OVERALL RESULTS ARE CONSISTENT OR UP OVER BUDGET AND PRIOR YEAR

• Operating Income• Up 5% from PY• 20% over Plan

• Operating Cashflows• Up 50% from PY• 3% over Plan

• Operating Expense• Up 9% over PY• 12% under Plan

• Operating Revenues• Up 8% over PY• 8% under Plan

FY 2015 OPERATING RESULTS

FY 2015 CARGO movement

0

550000

Highlights:

Over all cargo activity is Up

• 2,119,933 tons handled through the Inter-harbor and Velasco for a 17% increase over PY, 17% over plan

• 14,387,480 tons handled through the dedicated facilities for an 9% decrease from the PY

• Total volume through Port facilities totaled 16,507,413 tons

• Vessel activity is 38 call behind the PY and 14 calls against plan

Vessel

Barge

Total

Prior Year

244 22 266

Budget237 19 256

Actual 202 29 231



#1 Freeport Harbor Channel Improvement

Feasibility project completed Jan 2013 Water Resources Reform and Development Act Bill

approved June 2014 General Re-evaluation and Review (GRR) approved

April 2015• DOW thumb – Phillips 66 Berth #2

Construction of channel through G.O. Bonds Construction start – late 2018 Phase #2 Deeper water- Customer Driven

#1 Freeport Harbor Channel Improvements

#2 Rail Development

Hwy 36A rail corridor• Connecting Freeport and Rosenberg

• Access to U.P.R.R., B.N.R.R., and K.C.S.R.R.Continued economic growth for region

Joint effort between Fort Bend County, Brazoria County and Port Freeport – rail district formed, “Brazoria – Ft Bend Rail District”

Current Study will evaluate if there is a business case for investment?

(Cont’d)

How will communities along corridor benefit?

• Economic DevelopmentRosenberg by 2035

• 5,000 – 10,000 new jobs support Distribution/ManufacturingPort Freeport by 2035

• 10,000 – 20,000 new jobs supporting marine operations, distribution & manufacturing

$44 million State Sale Tax increase per year by 2035

Can the private sector play a role – 3P?

#2 Rail Development (Cont’d)

#3 1495 Bridge Construction Rebuild of bridge by TxDOT Need to make communities aware of traffic

impact Alternative routings 12 – 18 month construction

#4 East End Land Acquisition

Acquisition made by Port - currently owns 65% of properties• Developing plan will have minimal impact to home owners

Alternative route to Hwy 288

Avoid Houston congestion

Enhanced hurricane evacuation

#5 Hwy 36 Widening

www.portfreeport.com

Questions and Comments