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Global Logistics Focus Sept.19, 2016

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GLOBAL LOGISTICS PROFILE Recognizing that beneficial cargo owners rank congestion as a prime concern, the Port of Philadelphia strives to become the clear alternative to the increasingly congested ports of the U.S. Northeast. Due to the port's geographic location in the U.S. Northeast, and the excellent highway and rail infrastructure serving our marine terminals, we have the ability to distribute products within 48 to 72 hours to nearly 70 percent of the U.S. population. The Pennsylvania hinterland by itself provides prime access to those marketplaces, and that's why so many distribution centers have sprung up there. In fact, leading real estate developer Jones Lang LaSalle has named the region No. 3 in the 18 distribution markets it tracks. Many businesses are learning that another major advantage of establishing a distribution center in Pennsylvania is the close proximity of the Port of Philadelphia. The port allows centers to quickly receive and distribute goods. In 2015, the Philadelphia Regional Port Authority marked its sixth year of consecutive cargo growth at the port; it was also the first time in the port's history that total cargo handled surpassed 6 million tons. In addition to container growth, strong performance among breakbulk cargoes -- in particular forest products like paper and pulp -- have contributed to the port's positive cargo figures. A cooperative effort between Packer Avenue Marine Terminal operator Greenwich Terminals (Holt Logistics), various container carriers, and the port authority has led to the Port of Philadelphia now offering five distinct new services calling the port's Packer Avenue Terminal. SeaLand first introduced enhancements to their South Atlantic Express and North Atlantic Express services, as well as launched a new Atlantico service -- a direct service targeting produce and other cargoes in Mexico that have traditionally underutilized ocean transportation. MSC also enhanced their Canadian Gulf Bridge service, a route servicing ports in Mexico – namely Altamira and Veracruz – to call Philadelphia. Additionally, MSC christened the Philadelphia Express in August; initiating the port's first neo-Panamax vessel service and strengthening Philadelphia's connections to northern Europe. The service makes stops in Chile, Peru, Ecuador and the Bahamas before calling Philadelphia and then heading to Rotterdam within 9 days. The weekly service is projected to not only bring about more imports from South America through Philadelphia, but also -- among other benefits -- increase rail volumes from the U.S. Midwest, as the service handles various exports to northwest Europe. Things are progressively happening at the Port of Philadelphia and all the while we're still getting ready to grow even more as we approach the completion of two of our biggest projects to date: The Delaware River Main Channel Deepening and the Southport Marine Terminal project. Slated for 2017 completion, the channel deepening project will bring the Port of Philadelphia's main shipping channel to 45 feet, making it big ship ready. The Southport project will result in up to three new port operations on previously unused waterfront land along the Delaware River. In August, the PRPA board hired Jeff Theobald as its new CEO. Theobald is a seasoned maritime professional with more than 30 years of experience in terminal operations and container line logistics. Having held a variety of posts around the world, including several senior management positions at APL, and he looks forward to working with the board and PRPA staff, as well as the administration of Pennsylvania Gov. Wolf, to assure that the Port of Philadelphia fulfills its vast potential. JEFF THEOBALD CEO, PHILADELPHIA REGIONAL PORT AUTHORITY Philadelphia Continues to Build Volumes, Sets Stage for a Bold Future

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