METROPOLITAN WATERFRONT ALLIANCE November 30, 2010

1. Building a New Shipping Paradigm: Jobs3, Port Commerce, Environmental Betterment, and Community Relationships in Brooklyn: METROPOLITAN WATERFRONT ALLIANCE November 30, 2010

2. NYCEDC: Our Role in Goods Movement • Oversee transportation and infrastructure projects that make transit within the Tri-state region more efficient. • Manage the redevelopment of the City's seaport and rail facilities to help improve the distribution of goods in the New York area. • Implement PlaNYC Marine Transportation Goals

3. BROOKLYN WATERFRONT STRATEGY Background: Port statistics Port stats: • Third-largest port in the US; largest on East Coast • 2,780 acres • Employs 3,500 longshoremen • 5,000 annual ship calls • 4.5M containers handled annually Brooklyn Navy Yard Bayonne Red Hook Newark/ Port Elizabeth Sunset Park Howland Hook Port trends: • Demand for non-container cargo uses • Demand for additional cruise capacity • New York City businesses seeking to lower transportation costs • Increased demand for over-water delivery of construction materials Atlantic Ocean New York Port maritime terminals

4. New York City Marine Terminals New York Container Terminal Red Hook Container Terminal South Brooklyn Marine Terminal

5. Significance of the Marine Cargo System • The region’s maritime facilities and operations are essential to the economy of the City of New York, and to the everyday lives of its residents and employees • Gateway to global markets for NYC export businesses (20 million tons and $40 billion in value, 2008) • Access to imported materials and products for NYC businesses and consumers (70 million tons and $140 billion in value, 2008) • Fuel-efficient “green transportation” of domestic fuel, food, bldg materials (60 million tons in 2008, saved 7 million gallons of fuel) • New York City jobs, business output, and tax revenues: over 9,000 direct and 31,800 total jobs, nearly $2.1 billion in personal income, nearly $6.8 billion in business revenues, nearly $1.3 billion in fed/state/local tax revenues (2008; CS and ASW, Inc.) • Less than 7% of regional truck moves

6. BROOKLYN WATERFRONT STRATEGY Cargo—Red Hook • Current operations: • Container terminal and warehousing • No public waterfront access • Approximately 45,000 containers = about 2% of total port • Total of 220 full and part-time jobs • Mostly automated operations; not job-intensive • Most containers barged to Port Newark

7. BROOKLYN WATERFRONT STRATEGY Cargo—Red Hook 90% Newark/ Port Elizabeth Red Hook 20%

8. New York’s challenge • Limited space for typical distribution centers, but lots of consumer demand • Higher freight costs driven by fuel costs, tolls, taxes • Higher environmental costs driven by climate change • Overweight, dimensional restrictions and tolls raise transportation costs • New York needs a new paradigm for waterborne freight logistics • Ship: Low sulfur diesel • Marine terminal close to consumer market • Zero or low emission yard equipment Low emission truck

9. Paradigm shift: Phoenix Beverages moves to Red Hook • Ships carrying containers of beer from Europe and the Caribbean call at Pier 10 in Red Hook instead of at Port Elizabeth • Phoenix strips containers inside Piers 7 and 11 and distribute products for local consumption • Phoenix has committed to convert its local distribution fleet to CNG • This will reduce 20,000 truck trips annually • It represents a 20 percent increase in container movement in the Port of Red Hook • Retains 400 NYC jobs and creates 100 new Brooklyn jobs Pier 7 Pier 10 Pier 11

10. Phoenix Beverages: Greening the fleet • CNG Truck fleet: • 23% less greenhouse gas emissions • Significantly reduce carbon monoxide emissions • 90% reduction in particular matter emissions • 25%-45% reduction in nitrogen oxide emissions • 25% reduction in carbon dioxide emissions

11. Phoenix Beverages Truck Route Challenge Pier 7 • Vessels unload at Pier 10 and trucked into Pier 11 or Pier 7 • Local trucks access BQE via Atlantic Avenue gate or Bowne Street • Returning trucks arrive gradually throughout the day to Pier 11 to drop off empties • Return to Pier 7 for storage or 2nd load Pier 10 Pier 11

12. The New Paradigm: Partnership solutions Solutions • Attract East of Hudson Cargos to Red Hook via Phoenix Lease • Mandate green truck fleet • All trucks to the Brooklyn-Queens Expressway between Hamilton Avenue and Atlantic Avenue • Recruit for new jobs from adjacent communities • Problems • Red Hook reliance on barge to NJ • Concerns over air pollution • Community complaints over new truck trips • Too few jobs at Red Hook

13. Divert trucks to the BQE • July: Route maps distributed to all drivers • August 13: Detour signs installed

14. THANK YOU!