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History of the PRPA February 10, 1988 – Governor Casey appointed a special committee to study and make recommendations for expanding the role of the Port of Philadelphia in the state’s economy. 4

Port of Philadelphia 1989 “The Port of Philadelphia is in serious trouble. The City of Philadelphia lacks resources to invest in new technologies needed to maintain the competitiveness of the port. Moreover, because of other claims on its tax revenues, the city’s enthusiasm for investing in the port has gradually diminished over the past two decades.” “Pennsylvania (and Philadelphia in particular) have lost market share to all other states because the Commonwealth – unlike most other states having successful port operations – has not seized that authority and developed a statewide strategy for maximizing its transportation assets, including the ports. 5

Port of Philadelphia 1989 The administration of the Philadelphia port has grown up piecemeal, haphazardly combining from 15 to 25 agencies, each with a piece of the pie but none having overall jurisdiction. The system has become, from an administrative point of view, highly political. 6

Recommendations Immediate assumption by the Commonwealth of Pennsylvania Establish authority with statewide jurisdiction. Create Philadelphia Regional Port Authority Negotiate Bi-state unification 7

Moving Forward - Unification Creation of the PRPA Purchase of City Assets Decade of Unification Attempts LATEST PHILLY WHOPPER? PORT UNIFICATION – Journal of Commerce September 1998 When it got down to the fine details, the New Jersey side started making impossible financial demands, such as wanting to charge rent to Pennsylvania. The notion of partnership evaporated. 8

Moving Forward Unification Funding the Port Authority Unification/DRPA – Maintenance Dredging Costs during unification efforts Federal Grant programs were eliminated Commonwealth Capital Funding Operating Appropriation 9

The new Millennium! The Port needs to be able to rely on a consistent, predictable funding source in order to be taken seriously by the Transportation Industry. – PIDC 1988 To succeed PRPA needed: Educate Commonwealth and Legislature on Port Needs Secure funding to maintain facilities – 2010 Deepen the Channel Expand – Innovative Land Acquisitions Future Development – Where we are at 10

Channel Deepening Transformative Moment for the Port 11

12  Increase authorized depth of Delaware River federal navigation channel by 5 feet  Follow 40-foot channel alignment miles from Philadelphia/Camden to deepwater in Delaware Bay  Widen 12 of 16 channel bends for safer navigation  Deepen Marcus Hook Anchorage to 45 feet also  No change in channel widths (ranging 400 to 1,000 feet)  Channel was already deep enough in about 50% of its area pre-construction and thus requires no dredging  Current project cost: $303 million  Nonfederal sponsor (35% cost share): Philadelphia Regional Port Authority  Total estimated dredging volume: 16 million cubic yards

Channel Deepening Significance Containers Containers (TEUS) 194,593272, , , , ,122 Containers (Metric Tonnage)1,392,9401,860,097 2,041,665 2,003,909 2,443,248 2,916,448 Breakbulk Steel 1,802,186172, , , , ,200 Fruit 225,059308, , , , ,294 Forest Products 667,911389, , , , ,844 Cocoa Beans 118,70097, ,767 90, ,639 97,688 Project Cargo -40,518 39,205 47,457 42,317 39,913 Military "Other" Sugar & Misc 28,486 6,204 6,329 25,267 49,879 10,640 Breakbulk Total 2,842,342 1,013,312 1,044, ,752 1,208,350 1,383,579 Ro/Ro Automobiles (Units) - 68, , , , ,637 Auto (Metric Tonnage) 1,294 77, , , , ,546 Bulk Liquid Bulk Total 520, , ,890 1,227,095 1,267,915 1,437, Grand Total 4,757,248 3,627,250 4,001,759 4,418,674 5,100,385 5,951,240 13

14 Changes in Commodities

1999 YR Delaware Valley Regional Planning Commission Region (Nine PA and NJ Counties) Cargo TypeDirect employment Total employment Personal income Business Output State and Local Taxes Federal Tax Revenue Total Tax Revenues Container 802 2,315 $ $ $ 14.1 $ 30.2 $ 44.2 Breakbulk - Non Food 2,317 9,228 $ $ 2,460.9 $ 64.3 $ $ Breakbulk - Food 298 1,223 $ 96.4 $ $ 8.7 $ 17.3 $ 26.1 Bulk $ 27.1 $ 85.6 $ 2.4 $ 4.9 $ 7.2 Roll On-Roll Off - - $ - TOTAL ECONOMIC IMPACT 3,546 13,137 $ 1,015.4 $ 3,408.9 $ 89.5 $ $ YR Delaware Valley Regional Planning Commission Region (Nine PA and NJ Counties) Cargo TypeDirect employment Total employment Personal income Business Output State and Local Taxes Federal Tax Revenue Total Tax Revenues Container 1,852 5,343 $ $ 1,227.0 $ 32.5 $ 69.6 $ Breakbulk - Non Food 974 3,880 $ $ 1,034.8 $ 27.0 $ 54.5 $ 81.6 Breakbulk - Food 288 1,184 $ 93.3 $ $ 8.5 $ 16.8 $ 25.3 Bulk 355 1,024 $ 74.9 $ $ 6.6 $ 13.4 $ 20.0 Roll On-Roll Off 324 1,169 $ 89.1 $ $ 7.9 $ 16.0 $ 24.0 TOTAL ECONOMIC IMPACT 3,794 12,601 $ $ 3,120.2 $ 82.5 $ $ in millions of 2015 dollars

Real Estate Acquisition 16

17 DateSiteAcresAmount July 26, 1990Original Piers $49,277, October 13, 1995Delaware & Washington0.0593$1, July 23, 2003K&T Rail Strip0.8682$0.00 March 10, 2004Parcel 9 A47.204$1.00 October 13, 2005Pier 74 South Annex15.59$3,350, June 29, E. Tioga Street9.53$1,600, August 2, 2007Pier 122 South17$2,699, August 2, 2007Pier 124 South24$1,200, August 2, 2007Whiskey $2,100, August 2, 2007Savage12.22$1,500, January 24, E. Tioga Street2.1304$500, September 15, Essington Avenue47.6$1.00 November 24, S. 61st Street15$150, August 23, Mustin Street180.81$ December 2, 2011Jacks' Marina34.9$1,262, July 25, 2012NS Parcel8.87$1,200, August 2, 2012Marshall Island130.64$1,000, March 2, 2015Retained Area $2,460, $68,301,098.25

Public Private Partnerships Food Distribution Center PAMT Southport 18

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20 Philadelphia Wholesale Produce Market  Public private partnership  Size: 667,000 square feet  USA’s largest contiguous refrigerated warehouses

21 Packer Avenue Marine Terminal

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Southport 24

Southport 25

Southport – Job Potential Container Terminal ◦5500 TEUs per year per gross acre ◦RTG operation ◦2 berths ◦Capacity 800,000 to 1.1 million TEUs annually ◦3,800 direct jobs ◦5,600 induced jobs ◦9,400 total jobs annually Auto/RoRo Terminal ◦1700 autos per year per acre ◦80% utilization for storage ◦Capacity of 272,000 units per year ◦380 direct jobs annually ◦650 induced and indirect jobs ◦1,030 total jobs annually 26

Southport - Timeline DateMilestone September 23, 2015Release of RFQ October 23, 2015Last date for Respondents to submit questions regarding the RFQ November 18, 2015 Prior to 3:00pm local time SOQ Due Date December 2015Anticipated Announcement of Short-listed Respondents December 2015Issuance of RFP to Short-listed Respondents June 2016Proposal Due Date July 2016Selection of Preferred Short-Listed Respondent November 2016Execution of Development Agreement 27

Thank you 28