Port of Corpus Christi Tariff Review

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Port of Corpus Christi Tariff Review A presentation to the Port of Corpus Christi Authority August 15, 2017

Purpose • To better understand how tariff rates at Corpus Christi compare to those at other Gulf Coast Ports • This effort specifically focuses on liquid bulk tariff rates, which accounted for over 85 percent of the total tonnage handled at the Port of Corpus Christi in 2016

Methodology:

Collected data from 15 Gulf Coast ports

Methodology:

Collected data from 15 Gulf Coast ports • Wharfage rates

• Facility attributes

• Dockage rates

• Terminal assets

• Fees and surcharges

• Cargo handling assets

• Cargo volumes by commodity

• Storage assets • Multimodal access

Total Tonnage Handled: Total Tonnage Handled (Million Short Tons)

All Commodities, 2014 250

Port of Houston Port of Beaumont Port of Corpus Christi

200

Port of New Orleans Port of Baton Rouge Port of Mobile

150

Port of Lake Charles Port of Texas City Port of Port Arthur

100

Port of Tampa Bay Port Everglades Port of Freeport

50

Port of Galveston Port of Brownsville Port of Gulfport

0 All Commodities

Total Tonnage Handled: Total Tonnage Handled (Million Short Tons)

Petroleum and Chemical Products 160 Port of Houston 140

Port of Beaumont Port of Corpus Christi

120

Port of Lake Charles Port of Texas City

100

Port of Port Arthur Port of New Orleans

80

Port of Baton Rouge Port of Freeport

60

Port of Tampa Bay 40

Port Everglades Port of Mobile

20

Port of Galveston Port of Brownsville

0 20 Petroleum and Petroleum Products

30 Chemicals and Related Products

Port of Gulfport

Petroleum and Chemical Product Tonnages by Commodity (million tons) Baton Rouge

Houston

Beaumont

Corpus Christi

Crude Petroleum Distillate Fuel Oil Gasoline

49.74 31.64 11.95

52.62 7.21 5.81

37.04 10.75 7.88

27.76 8.35 6.12

17.86 9.66 4.27

5.88 8.01 3.51

Other Hydrocarbons

5.25

0.93

3.64

1.04

1.83

1.86

Residual Fuel Oil

13.85

2.36

3.22

1.16

2.65

3.98

Naphtha & Solvents

12.61

3.85

2.58

1.79

3.52

0.94

Asphalt, Tar & Pitch

2.34

1.56

1.53

0.22

0.15

1.31

Petroleum Coke

7.09

1.74

1.48

3.19

1.42

1.92

Sodium Hydroxide

1.12

0.15

1.10

1.22

0.04

2.97

Hydrocarbon & Petrol Gasses

14.00

0.11

0.99

0.06

1.33

0.45

Benzene & Toluene Alcohols

5.78 6.87

1.01 0.54

0.88 0.45

0.24 0.01

0.70 1.60

2.53 1.30

Commodity

Lake Charles Texas City

Petroleum and Chemical Product Tonnages by Commodity (million tons)

Million Tons Handeled (2014)

160

Hydrocarbon & Petrol Gases

140

Sodium Hydroxide

120

Petroleum Coke

Asphalt, Tar & Pitch

100

Naphtha & Solvents

80

Residual Fuel Oil 60 Other Hydrocarbons 40 Gasoline 20 Distillate Fuel Oil 0 Houston

Beaumont

Corpus Christi

Lake Charles Texas City Baton Rouge New Orleans

Crude Petroleum

Wharfage Rate for Liquid Bulk NOS by Port ($ per Barrel)

Fully Loaded Wharfage Rates for Petroleum Liquid Bulk (Per Barrel) Port

Base Wharfage Rate

Surcharges & Fees

Full Burden

Port Arthur

0.3910

0.0450

0.4360

Beaumont

0.1880

0.0450

0.2330

Houston

0.2000

0.0064

0.2064

New Orleans

0.1579

0.0380

0.1959

Lake Charles

0.1775

0.0068

0.1842

Texas City

0.0892

0.0600

0.1492

Freeport

0.1098

0.0105

0.1203

Baton Rouge

0.1128

Corpus Christi

0.1005

Tampa

0.0820

0.1128 0.0008

0.1013 0.0820

Fully Loaded Wharfage Rates for Petroleum Liquid Bulk (Per Barrel) 0.50 0.45

Full Wharfage Burden per Barrel

0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 Port Arthur

Beaumont

Houston

New Orleans

Lake Charles

Base Wharfage Rate

Texas City

Freeport

Surcharges & Fees

Baton Rouge

Corpus Christi

Tampa

Fully Loaded Burden Example: Average Petroleum Tanker Base Dockage: 800ft Vessel 10,840

Base Wharfage: 550,000 Barrels 215,048

Surcharges & Fees 4,725

Houston

8,880

110,005

4,292

123,178

Beaumont

9,904

103,389

4,638

117,931

Lake Charles

9,728

97,599

4,622

111,949

New Orleans

7,000

86,846

3,143

96,989

Texas City

6,376

49,060

33,000

88,436

Freeport

9,512

60,379

6,598

76,489

Baton Rouge

9,728

62,033

575

72,336

Corpus Christi

10,152

55,275

6,060

71,487

Tampa

9,728

45,100

600

55,428

Port Port Arthur

Full Burden 230,613

Commodity Value Based Wharfage Adjustments Commodity Category

Value Weight Value Per Ton Adjustment ($ million) (million tons) ($) Factor

Adjusted Wharfage (per Barrel)

Basic chemicals

35,923

27.64

1,230

1.55

0.1559

Chemical products

17,355

5.12

3,387

4.04

0.4063

Fuel oils

10,016

12.47

803

0.96

0.0963

Gasoline

13,991

16.70

838

1.0

0.1005

Wharfage Rate for Iron and Steel Articles by Port (per ton) 4.00 Everglades

3.50 Wharfage Rate ($ per Short Ton)

Mobile Freeport

3.00

Gulfport Corpus Christi

2.50

Houston Port Arthur

2.00

Beaumont Tampa

1.50

Baton Rouge Galveston

1.00

Lake Charles New Orleans

0.50

Brownsville Texas City

0.00 Iron and Steel Articles

Wharfage Rate for Dry Bulk by Port (per ton) 2.50 Texas City

Wharfage Rate ($ per Short Ton)

Lake Charles 2.00

Port Arthur Corpus Christi Gulfport

1.50

Beaumont Galveston Tampa Everglades

1.00

New Orleans Freeport Mobile

0.50

Baton Rouge Brownsville Houston

0.00 Dry Bulk

Wharfage Rate for Machinery and Machinery Parts by Port (per ton) 8.00 Houston Wharfage Rate ($ per Short Ton)

7.00

Everglades Gulfport

6.00

Corpus Christi Mobile

5.00

Beaumont Lake Charles

4.00

Tampa 3.00

Brownsville Freeport

2.00

Galveston New Orleans

1.00

Baton Rouge Texas City

0.00 Machinery & Machinery Parts

Port Arthur

Thank you! Michelle Humphrey is a Project Consultant for Northern Economics, Inc.

Additional Wharfage and Dockage Surcharges by Port Port

Security Surcharge— Dockage

Security Surcharge—Wharfage (per ton)

Other Fees

Corpus Christi

7.50% total dockage

7.50% total wharfage

$1,153 per voyage Harbor Safety Fee

Baton Rouge

$150 per Vessel

Beaumont

9.25% total dockage

breakbulk $0.195, dry bulk $0.045, liquid bulk $0.045

Brownsville

8.75% total dockage

breakbulk $0.0363, bulk (dry or liquid) $0.0363, NOS $0.1179

Everglades

$0.158 per GRT (Cargo vessels)

breakbulk $0.173, dry bulk $0.035, liquid bulk $0.034

Freeport

8.50% total dockage

breakbulk $0.20, bulk (dry or liquid) $0.07

Galveston

8.75% total dockage

breakbulk $0.19, bulk $0.04, liquid bulk $0.04

Gulfport

7.50% total dockage

breakbulk: $0.16, dry bulk: $0.05, liquid bulk: $0.05

Houston

8.75% total dockage

breakbulk $0.19, bulk (dry or liquid) $0.0425

Lake Charles

9.25% total dockage

breakbulk $0.195, bulk $0.045, liquid bulk $0.045

Mobile

9.00% total dockage

New Orleans Port Arthur

9.25% total dockage

$425 per voyage harbor fee to all ocean-going vessels engaged in foreign or coastwise trade

Fire Protection Service Fee of $0.0269/barrel on petroleum products

breakbulk $0.19, dry bulk $0.04, liquid bulk $0.04 breakbulk $0.16, bulk $0.038, liquid bulk $0.038 Breakbulk $0.195, dry bulk $0.045, liquid bulk $0.045

Tampa

$0.75 per foot Harbor Master Fee

Texas City

Wharfage surcharges on crude oil: $0.06/barrel.

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