1. Session 1: The Coming Resin Boom in the Gulf Coast
Moderator: Curtis D. Spencer, President, IMS Worldwide, Inc.
SPEAKERS: Gary Furneaux, ExxonMobil, Baytown, Texas
Frank Vingerhoets, President KTN Americas

2. Table of Contents How much Resin are we talking about?
What transportation infrastructure is needed in order to manage this Resin Boom?
How are the packagers, truckers and others situated to process this much Resin?
What will the impact be on Harris County?
Foreign Trade Zone, Logistics and Supply Chain Consulting

5. How Much Resin? 22 Billion Lbs/Yr MORE Than we produce today.
30% will be Exported- SO- Just for Exports….
That is 107,300 more Resin Rail-Cars
That is 23,800 more SIT storage spaces in Greater Harris County
That is 400,000 more container loads/year
Packaged in 40 Million More Feet of Warehouses.
Equals Huge Boom for Harris County!
Foreign Trade Zone, Logistics and Supply Chain Consulting

6. Managing the Challenges of Accelerated Growth
Gary Furneaux, ExxonMobil Baytown Texas
Harris County International Trade & Transportation Conference
October 23, 2014

7. Gulf Coast Growth Gulf Coast Growth - New Stream Crackers
Shale Gas Boom = Feedstock = Resin Production
Gulf Coast Growth
- New Stream Crackers
- New Reactors
- De-bottleneck projects
ExxonMobil
- Current Gulf Coast exports = ~300kTa
- North American Growth Project = 1300kTa
* 1 X Steam Cracker
* 2 X Polyethylene Reactors
- Proposed 1 X Polyethylene Reactor = 650kTa
Potential growth from 300kTa to 2250kTa
Potential growth from 50 to 360 trucks per day

8. Growth Challenges - Rail
Current Operations
- Load Hopper railcars for storage / transportation
- Rail to Houston area packaging facilities or NA customers
Growth Challenges
- Houston rail congestion
- Storage track availability
Opportunities
- Operational opportunities with Railroads
* 7 day a week switching
* Communication with RRs / forecasting to packagers
- 286k capable track
- RR storage track (SIT) or on-site track (loads & empties)
- Packaging company rail track
- Packaging on-site or adjacent property

9. Growth Challenges – Packaging / Storage
Current Operations
- Railcars offloaded to packaging lines / Seabulk loading
- Temporary storage prior to container loading
- Drayage to Port / Railheads for export
Growth Challenges
- Packaging capacity
- Rail infrastructure
- More storage requirements / slower throughput
Opportunities
- Communicate growth plans with packaging companies
- Commitment agreements versus enabling agreements
- Accurate volume forecasts
- Operational opportunities with Railroads
- High-speed packaging equipment
- Rail infrastructure matches capacity increases

10. Growth Challenges – Trucking
Current Operations
- 20’ and 40’ containers drayed to PoH and Railheads
- Container Yards / Trailer Transfers often utilized
- Port Hours – 5 days a week /
- Railroad Intermodal ramps open ~24 / 7
- Road weight limits – 84k lbs.(w/ permit)
Growth Challenges
- Infrastructure
- Traffic congestion
- Truck / Chassis availability
- Driver availability
- Safety

11. Growth Challenges – Trucking
Opportunities
- Support infrastructure improvement projects
- Safely Increase truck weight limits
- Commitment agreements vs enabling agreements
- Accurate volume forecasts
- Resin producer / packager - truck related infrastructure (container yard / staging yard, etc.)
- Dedicated drayage truck fleets / operations
- Orderly transition of chassis ownership
- Dedicated trucking operations / standard driver hrs.
- Driver safety standards
- Transportation Management

12. Growth Challenges - Port
Current Operations
- Barbours Cut / Bayport container terminals
- 2013: ~ 2M TEUs
- 2013: Plastics largest export by tonnage / $ value
- ~ balanced container availability
Growth Challenges
- Export growth
- Panama Canal Growth
- Infrastructure challenges: port depth / turning basin
Opportunities
- Expand port operating hours (CBP)
- Shippers commit volumes to ‘off-hours’
- Shippers communicate growth plans
- Operational efficiencies

13. Growth Challenges – Marine Dry Cargo
Current Operations
- All major shipping lines serve Port of Houston
- Intermodal to LA / LB
Growth Challenges
- Container availability
- Panama Canal implications
Opportunities
- Longer-term MDC agreements
- Commitment agreements versus enabling agreements
- Monitor allocation agreements
- Accurate volume forecasts
- Communication with SSL equipment managers
- Reposition containers (Dallas / MX / East Coast strings)
- Freight Forwarder serves to coordinate multiple parties

14. New Manufacturing in Harris County RESIN BOOM !
Frank Vingerhoets, President KTN Americas
`Invoe
October 23rd 2014

15. Key Data Covered warehouse capacity 60,000,000 ft² Logistics platforms
150
Countries 28
Employees
11,000
Revenue
$1.4 billion
Headquarters
Antwerp, Belgium
Structure
Privately owned company
Number of silos
3,100

16. Worldwide Locations

17. North America

18. Houston Locations
FUTURE
Current
Current

19. KTN HOUSTON POLYMERS TERMINAL, Houston TX
Sq. Ft.
1,850,000
Railcar spots
540
Silos 24
Boxing Lines 7
Bagging Lines
Repacking Rooms 1
Temp Controlled Rooms
n/a
Special Added Services 3
Transfer Systems 6
# of Buildings 4

20. ETHYLENE PROJECTS
10 new gas crackers have announced: Chevron Phillips (Cedar Bayou), ExxonMobil (Baytown), Dow (Freeport), Formosa (Point Comfort & Louisiana), OxyChem (Ingleside), Axiall (Louisiana), Sasol (Lake Charles), Shell (Monaca) and Odebrecht (Parkersville, WV).

21. Project CCLT – Master plan
Site is connected to Union Pacific and BNSF:
High capacity yard of 2,000 cars
Large inbound and outbound tracks for flexibility to receive large block trains
Easy access to major road connections (Grand Parkway 99, I-10, 146)
Close proximity to Barbour’s Cut and Bayport Container Terminals
Heavy Haul to Cedar Bayou Barge Terminal
Foreign Trade Zone Facility

22. Project CCLT – Master plan

23. Project CCLT – Artist Impression

24. Project CCLT – Phase I
500,000 sqft warehousing + supporting buildings (office, maintenance):
Large civil infrastructure:
Entrance road
Massive drainage and detention structure to support master plan development
Rail development:
Connection UP & BNSF per approved design
Rail tracks to building + bulk unloading tracks
150 HC spots yard + lead and run-around tracks

25. Project CCLT – Phase I

26. Project CCLT – Phase I

27. Thank You for your attention !!!

28. QUESTIONS?