Session iii j borkland

Opportunity at the Corner of Environment and Infrastructure Presented by: Jay Borkland, Vice President and Principal

Energy Interdependence in the Western Hemisphere • Philadelphia, PA November 5, 2015

Ports: U.S. Critical Infrastructure  95% of ALL U.S. trade moves through its ports: $4 Trillion of goods per year;  Each of the 50 states average 15 ports handling their imports and exports;  Our ports handle 98% of the country’s overseas cargo by volume;  Ports are truly a national asset, with 96% of goods moving through the ports starting or ending at locations outside the port area.

Greater Philadelphia Port, Clean Air Council, September, 2011

Source: Global Cities Initiative / Brookings & JP Morgan Chase (June, 2015)

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Port Infrastructure

Key Infrastructure is Currently Underutilized and Undervalued

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Historic Shifts Trend – Larger Vessels Requiring Greater Port Infrastructure

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Energy Economy Today’s new energy economy provides opportunities for:

Energy Infrastructure Map, EIA Energy Profile, accessed October 2015

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Port redevelopment and expansion

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New import/export facility development

Environment: Enhancing Regulatory Acceptance Main Detractors of Port Investment  Regulatory difficulties  Lack of agency and public acceptance

Environment-Driven Innovation  Re-engages regulators  Renews community and economic development

Example Site:  Filling of 7 Acres of Land Underwater  Flounder relocation allows for 365 construction schedule

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Massachusetts Portfield Redevelopment Project Completed 2015

Environment-Driven Port Redevelopment  New ideas for contaminated sediment disposal methods can dramatically cut waterfront redevelopment capital costs  CAD Cells can cut in-water redevelopment costs by order of magnitude ($650/cy to $90/cy*)

Confined Aquatic Disposal (CAD) Cell, New Bedford, MA

 CDF can cut waterfront redevelopment costs in half

* Based on EPA Superfund Published Data (2004-2014) and Apex database of dredge costs in the Northeast

Confined Disposal Facility (CDF), Massachusetts, 2014

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Funding Each U.S. Port Serves Dozens of Metro Areas  Investigate P3 and supply chain investment funding (“Crowd Funding”)  Lobby for government investment through grant and loan programs:  A redefined “Portfields” program;

 America’s marine highway program (Short Sea Shipping).

Source: Global Cities Initiative / Brookings & JP Morgan Chase (June, 2015)

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Opportunity Value Proposition Environment-Oriented Redevelopment     New Tanker Joins the Fleet, Crowley Shipping Publication, August, 2012

Lower capital costs Decrease environmental liability and risk Increase permit-ability Increase ROI

Risk profile reduction can stimulate redevelopment and make energy and shipping hubs possible.

Lower Risk + Lower Capital Costs + Growth in World Trade

Potential “Southport” Redevelopment Area, Philadelphia (PRPA, 2014)

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Invest 9

Thank you!