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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Thank you!