What’s New at Port Freeport

Port Commission John Hoss Ravi K. Singhania Paul Kresta Rudy SantosShane Pirtle Bill Terry

Two Years Ago

PRESENT

Current Capital Projects ProjectEst. Completion Date  Velasco Phase 2 Area I – 3.5 acresCOMPLETED  Dock 5 Trench Drain RepairsCOMPLETED  Berth 5 Mooring Improvements09/2015  Berth 7 Backland Paving – 20 acresCOMPLETED  Turning Basin Road Widen and OverlayCOMPLETED  Parcel 25 Asphalt paving & DrainageCOMPLETED  Administration Building02/2016  Dock 2 Floodwall Modification / 408 Permit06/2016 Estimated Total Cost: $40 million

ProjectEst. Completion Date  Pete Schaff Repairs2015  Parcel 19 Stabilization2016  Transit Shed 2 Demolition2016  Parcel 14 Development2017 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

New Administration Building

 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 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 VesselBargeTotal Prior Year Budget Actual 

#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 Development Rosenberg by ,000 – 10,000 new jobs support Distribution/Manufacturing Port Freeport by ,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)

# 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

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