Florida’s Gateway
Built to move more with less
Barrie Bloom, GEM Realty Capital
Carl Warren, CSX
Mark Levy, JLL
Barrie Bloom, Senior Vice President
GEM Realty Capital
Ms. Bloom joined GEM in 2013 and is a member of both the portfolio management
and acquisitions teams for GEM Realty Properties. As an asset manager, Ms.
Bloom is involved in all facets of asset management of residential assets and credit
investments and is responsible for quarterly reporting and annual budget
presentations to the members of the Investment Committee. For acquisitions, Ms.
Bloom coordinates acquisition due diligence efforts, is involved in the deal
negotiation process, and sources private-market real estate opportunities.
Prior to joining GEM, Ms. Bloom was a vice president at PCCP, LLC, a finance and
investment management firm, where she focused on workouts of mezzanine loans,
acquisitions of distressed properties, and originating senior loans from 2010 through
2013. In 2008 and 2009, she was at Lehman Brothers Real Estate Mezzanine
Funds where she worked to restructure leverage facilities and distressed properties.
Prior to attending business school, Ms. Bloom was a loan officer at LaSalle Bank in
the for-sale residential division. Ms. Bloom received a Masters of Business
Administration from Kellogg School of Management, Northwestern University, in
2008, and received a Bachelor of Business Administration from the University of
Illinois at Urbana-Champaign in 2003.
Carl Warren, Director Industrial Development, East
CSX Transportation
Carl Warren began his transportation career in 1996 with the BNSF Railway with
positions in finance, network development and intermodal. Prior to joining CSX he
was a senior official at the Port of Portland in Portland, Oregon.
At CSX, Carl has held a number of roles utilizing his experience in infrastructure
development, strategic planning and intermodal. In his current role he is responsible
for infrastructure development with Ports and industrial development in South
Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania, New Jersey,
New York, Massachusetts and the Canadian Province of Quebec.
He is a graduate of Wesleyan University in Middletown, Connecticut and holds a
M.S. in Transportation from the University of Washington in Seattle, Washington.
Mark Levy, Executive Managing Director
JLL
Mark G. Levy is an Executive Managing Director and is the National Practice Leader
of the firm’s U.S. Port, Airports and Global Infrastructure Practice, based in
Washington, D.C. He is also a senior member of the firm’s Mid –Atlantic U.S.
Executive Committee with both key business line and market oversight
responsibilities.
Mark’s highly diverse career has spanned over 25 years and has included senior
leadership roles in asset management, investment and development within both
public and private real estate companies. Immediately prior to joining JLL, Mark
served as Investment Officer/Regional Head of Capital Deployment in the Eastern
United States for Prologis (NYSE:PLD). Formerly, he ran the company’s Mid –
Atlantic operations, with responsibility for all company activities including asset
management, development, acquisitions and leasing. Mark also has held senior
level management roles at Duke Realty Corporation, Opus Corporation as well as
the Friedman Realty Group where he oversaw much of Sumitomo Corporation of
America’s U.S. portfolio.
Mark has both a B.S. in Honors Economics and a B.A. in English from Syracuse
University and is a member of the Washington, DC Area Alumni Association.
Move more with less
• Goods to be shipped at a faster,
repeatable rate
• Lower costs
• Lower environmental impact
• High-tech, clean design
• Superior connectivity
• Unmatched access to CSX Winter
Haven Intermodal
A shelter from rising transportation costs
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•
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Cutting-edge technologies and green design
Ultra-efficient electric cranes that lower terminal emissions
Handheld gate scanners that reduce truck idle times
Remote switches to increase operational efficiency
The park
• 932.83 acres
• Planned for 8 million square feet of Class A
industrial development
• Direct CSX rail access
• Drayage cost reductions
• On-site use of hostler trucks for quick /efficient
transport of trailers to the intermodal center
• High-speed rail access to multiple ports/cities
• Easy access to highways/thoroughfares
TRANSPORTATION
COSTS
Rising transportation costs
2020 Highway Congestion
• Transportation growth is
expected to continue
• Highway congestion is
increasing
• Trucks experiencing pressure on
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•
•
•
•
•
Rising fuel prices
High driver turnover
Rising insurance costs
Hours of service change
Highway congestion
Driver shortages
CSX
Territory
Rail is the viable transportation alternative
Average shipping rates
(Cents per ton-mile)
Truck
Rail
Carload/Truckload
14.6
4.7
Bulk
13.6
3.5
Intermodal
17.4
5.6
Florida’s Gateway can lower the cost of Florida transportation
• 12.6 billion tons moved by truck and multimodal rail between Central Florida
and the U.S. lower 48 states in 2015
• Central Florida has a significant inbound to outbound imbalance for both
truck an intermodal rail
• The target commodities are non-bulk types of cargo that are hauled by truck
from distances to and from Orlando that are at least 500 miles away
• The 500-mile segment is where intermodal rail is generally cheaper than
truck
• Goods coming from outside Florida can be transported more cheaply by rail
to Winter Haven and distributed throughout the state by truck
A gateway to international trade
NORTH AMERICA CLASS I RAIL NETWORKS
AND MAJOR CONTAINER PORTS
Imported goods from Asia arrive in Florida
via:
• Ports of Los Angeles and Long Beach, rail
to Atlanta via BNSF, rail to Winter Haven
via CSX
• Port of Savannah, truck or CSX rail to
Winter Haven
A low cost option to serve urban markets
Truck rates from Winter Haven
to Jacksonville, Miami,
Orlando and Tampa are very
competitive
WHY
FLORIDA
Florida’s population growth
• With nearly 20.7 millions
residents, Florida ranks 3rd in
U.S. population behind
California and Texas
• 1,000 people per day make
Florida their home
Location
1 HOUR to Tampa and Orlando
3 HOURS to Miami
5.5 HOURS to Savannah
6.5 HOURS to Atlanta and Charleston
50 miles
200 miles
350 miles
500 miles
7.5 HOURS to Mobile
18 MILLION PEOPLE within 200 miles
Winter Haven part of an evolving plan
• New sidings between Chicago and Florida
• 38 projects through 2020 to improve velocity and
throughput
• Clearances on I-95 Corridor
• Virginia Avenue Tunnel in Washington DC eliminates
major bottleneck
• Terminal projects
• Pittsburgh
• Carolina Connector
• Inland Ports in Georgia and South Carolina
Hub strategy expands market opportunities
Hub-and-Spoke Network
• Expanding hub strategy to Rocky Mount,
North Carolina
Montreal
•
Northwest
Ohio
NY/NJ
Pittsburgh
Chicago
Philadelphia
St. Louis
Portsmouth
Raleigh
Memphis
Wilmington
Atlanta
Charleston
•
•
• Northwest Ohio hub continues to facilitate
growth
•
Comprehensive Pittsburgh offering upon opening in
mid-2017
•
New Memphis to the Northeast service starting
February 2017
Savannah
Jacksonville
New Orleans
New service via NWOH
Hubs
Miami
Captures a vibrant Raleigh market and provides
hub connectivity in 100+ lanes
Initial build to serve 186 lanes, 265k loads
Preliminary engineering and design is underway
Florida’s Gateway – public benefit estimate
• Output (cost of goods & services) during construction - $112M
• 1,370 jobs Years 1 & 2 – construction, services, etc.
• 200 jobs at terminal at opening
Over 10 year projected build-out
• $10.6B in output
• $900M in tax revenues
• $400M @ state & local level
• 8,500 jobs
The future of Florida’s Gateway
• The new central distribution point in Florida connecting the state’s
vast population to global trade lanes
• Connectivity with the Port of Savannah, which maintains on dock
rail and the fastest rail transit times in the South Atlantic
• Intermodal terminal operation
• Automotive terminal operation
• Associated warehousing, distribution & service facilities in the
future plans
COMMUNITY
ENGAGEMENT
The community
Challenges
Solution
2007 Headline – Lakeland Ledger
“Rally Rails Against CSX
Facility Plans”
2014 Headline – Lakeland Ledger
“New Winter Haven CSX Rail Terminal
is Vanguard of Future”
• Concerns from local community,
common with many intermodal
development projects
• Pollution
• Noise
• Communications plan
• Proactive approach
• Public meetings
• Correct misconceptions
• Educate surrounding community
Lessons learned
Communication is key
• Educate the general public and
specific local community groups
• Disseminate the correct
information
• Avoid misconceptions
ENVIRONMENTAL
IMPACT
Environmental benefits of rail transportation
• A gallon of diesel fuel can move a ton of freight a distance of 414
miles
• A truck, on average, moves a ton of freight about 100 miles for each
gallon of diesel fuel
• Trucks emit about 4 times more greenhouse gases than freight rail
• A single intermodal train can take 280 long haul trucks off of the
highway
A focus on sustainability
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•
•
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Previously utilized as Brownfield
LEED certified buildings
Solar panels on each building
Three wide-span electric cranes
• Produce zero on-site emissions
• Recover energy on downward moves
• Reduce number of hostlers in yards
• Facility designed for optimal rail
efficiency
Environmental impact
• Making the environment a priority
• Protecting the wetlands and
endangered species
Takeaways
Florida’s Gateway
is a validation of
the logistics park
model
Our value
proposition is fueled
by an optimal location,
the efficiency of the
logistics park model and
the cost-effectiveness
of intermodal
transportation
This is a strategic
land position as it
relates to the long
term growth of the
industrial market