1. Global Influences on the Workboat Market
Presented to: International WorkBoat Show New Orleans, LA November 30, 2016
Ken Eriksen Senior Vice President
@keriksen

2. Infrastructure Framework
Infrastructure Impediment = Inefficiencies
Inefficiencies = Less Effective Transport Capacity
Less Effective Transport Capacity = Higher Freight Rates
Higher Freight Rates = Lower Producer Returns
Lower Producer Returns = Lower Competitiveness
Lower Returns and Competitiveness = Reduced Economic Activity

3. Global Population Density -- Asia and India

4. Global Population Growth, 2004 to 2014

5. Global Population Shift Becoming More Urbanized

6. Record Miles being Driven, but Pace is Slowing at a Diminishing Rate

7. Freight Movements Rebounded with Strength, but Easing Lower

8. Rail Carloadings Sub-Par – Energy and Economy, but Grain Supports

9. Rail Performance Solid, Despite Recent Slowing

10. Inland Barge Fleet Expanded in 2015 for Covered and Tank

11. Grain Barge Loadings by River Segment – Lower River Areas Making Strides, Upper River Rebounding

12. Inland River Barge Commodity Profiles Open Suffering from Coal

13. Inland River Barge Commodities 2014 Volume Barged Totaled 592 million tons

14. Inland River Covered Barge Commodities 2014 Volume Barged Totaled 152 million tons

15. Inland River Open Barge Commodities 2014 Volume Barged Totaled 250 million tons

16. Inland River Tank Barge Commodities 2014 Volume Barged Totaled 190 million tons

17. Covered Barge Fleet Under Less Pressure with Larger Fleet

18. Barge Open Fleet more than Adequate, Looking for Something to Transport

19. Barge Tank Fleet Adequate, but Varies by Equipment Type

20. U.S. Shallow Draft Towboat Fleet Expansion, but This will Slow

21. U.S. Shallow Draft Towboats Increasing Power with 1,800 to 3,699 Horsepower – Energy Play

22. Barge Freight Rates Unmoved by Record Grain Export Program

23. Fast and Furious Fall (October-December) Grain Export Program

24. Exports by Port – High Volumes and Utilization

25. Dry Bulk Ocean Freight Rate Bottom Dwelling

26. Container Vessels Getting Larger, Companies Sinking

27. Implied Container Rates for Export Moves in Doldrums

28. Panama Canal & Vessel Loadings Potential Opportunities
Volumes Speak Volumes . . .
Compare to base vessel loaded to 39.5 foot draft, about 56,700 metric tons cargo
New locks will accommodate 50 foot draft and upwards of 97,000 dwt vessel.
Sensitivity on higher loadings for deeper draft, adjusting for loading and unloading time, and higher fuel burn.
Overall, toll structure not key determinant as much as heavier loadings.

29. Panama Canal Market Potential for Dry Bulk Movements
February 24, 2016 Cocoli Locks

30. Why Infrastructure Matters: The Case of the Columbia River
Volumes Speak Volumes . . .
Columbia River dredged three to 43 feet, completed during 2011
Evaluation of loadings greater than 55,000 metric tons
Loading have stair stepped higher each year from about 60,000 metric tons to nearly 64,000 metric tons
New export capacity, mono- loadings of grain and soybeans and dedicated market help sustain higher loadings

31. Recall the Infrastructure Framework, in Reverse
Infrastructure Improvements = Efficiencies
Efficiencies = Greater Effective Transport Capacity
Greater Effective Transport Capacity = Lower Freight Rates
Lower Freight Rates = Higher Producer Returns
Higher Producer Returns = Greater Competitiveness
Higher Returns and Competitiveness = Expanded Economic Activity

32. @keriksen