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Import Advantage

Economic and Viable Container Transportation Alternative

Sea Point seeks to offer an economic and viable container transportation alternative to the annual incremental container cargo that would be coming to the U.S. with a final destination of mid-America's 55 million consumers in major metropolitan centers such as Chicago, Memphis, Dallas, and Atlanta. The remaining intermodal destination cities are relatively small except for Houston.

Although Sea Point's transit time is 9 days longer compared to LA/LB's transportation time, including the Panama Canal transit, the ocean transit is the least costly leg of the trip to mid-America. The most expensive leg is the railroad leg. Sea Point's ability to deliver barges with containers sorted by railroad companies or regional truck deliveries and load them directly to rail makes Sea Point very efficient and economical in getting the containers to their destination. Accounting for an average of 4 to 7 days delay in LA from dock to railhead, the extra ship transit time coupled with the shorter rail transit time makes Sea Point's delivery dates within 1 to 3 days of when the container would have reached LA/LB.

Public Tariff Rate Comparison Between Los Angeles / Long Beach and Sea Point

The chart below illustrates the difference in rail costs taken in March 2007. These are public tariffs, and not the contract (lower costs) tariffs railroads typically charge high volume customers. Sea Point has confidentially supplied contract tariffs and uses them in presentations, but for this purpose, public tariffs are used. No Fuel Adjustment.

Distribution Data and Costs

Using actual distribution data supplied by carriers and taking into consideration incremental and differential costs, including the extra sea transit cost for a carrier delivering 1500 containers per week from Asia to mid-America, Sea Point could potentially save carriers approximately $14 million per year on imports alone.