A tour of Seattle’s working waterfront

The Port of Seattle...A working waterfront

As the 8th largest port in the United States, the Port of Seattle performs a critical function in U.S international trade. Seventy percent of inbound cargo crossing Seattle’s docks is bound for destinations in the Midwest and East Coast, and it is a top export gateway.

THE GREEN GATEWAY: The Port of Seattle Why a working waterfront is important aims to be the greenest and most energy A strong working port is vital to the economic health of King County and Washington efficient port in North America state. The Port of Seattle seaport generates 21,695 direct jobs with $1.6 billion of personal income, 7,845 indirect jobs and 26,716 induced jobs resulting in $2.5 billion Port of Seattle Seaport Priorities: of business revenue and $457.5 million state and local taxes. In addition, the port is a critcal link connecting Washington businesses with global markets, and supports the Develop and maintain outstanding cargo facilities to compete in the global 40 percent of jobs in our state that depend on trade. marketplace

Investing in Economic Development Strengthen local, Our region’s top tier freight infrastructure represents billions in federal, state, local and regional and state private investment. The Port of Seattle has spent around $1 billion on our container transportation terminals since the late 90’s. In the past five years we have committed over $340 infrastructure million more to road and rail projects to enhance the regional freight system. to speed the movement of cargo The Port of Seattle, the Green Gateway to Asia Create a positive industrial business Seattle is the closest U.S. port to Asia. We have the lowest carbon footprint for cargo environment to support trade-related shipped by sea from Asia to major markets in the Midwest and East Coast. industries and family-wage jobs Foster expansion The port is raising the bar of environmental sustainability through a number of industry- of export industries leading programs. The At-Berth Clean (ABC) Fuels program encourages voluntary regionally and reduction of vessel emissions and has eliminated 790 metric tons of sulfur dioxide throughout the emissions since 2009. Other programs include shore power, the Clean Truck Program, state the Northwest Ports Clean Air Strategy, Green Gateway Partners, and joint efforts with Protect and marine terminal operators to use cleaner fuels, exhaust controls and new equipment. enhance air and water quality

www.portseattle.org A world-class port in action What is happening on the terminal?

Container ships from around the world are being loaded and unloaded by ILWU local 19.

The largest ships calling the West Coast carry up to 9,000-10,000 TEUs. Seattle sees ships from 1,600-8,600 TEUs right now, and can handle ships 12,000 TEUs and larger.

The amount of time a ship is in port depends on how much cargo is being loaded/unloaded. Most ships in Seattle stay for 24-48 hours.

In 2012, 727 container vessels called at the port, and we handled 1.9 million TEUs. (TEU = 20’ equivalent unit (one 20’ container). Containers being loaded from a ship onto yard equipment. Trucks are picking up and dropping off containers.

Hundreds of trucks transit port facilities every day.

Drivers entering through automated-gate systems receive instructions about pick up or drop off locations for their container.

Containers are moved to/from Eastern Washington, nearby warehouse and distribution centers, and rail yards near the container terminals.

Most import containers carry consumer items like clothing, electronics, toys and auto parts.

Export containers are filled with cargo such as fruits, hay and grains, machinery, fish, chemicals and forest products. Trucks delivering containers to rail yards, distribution centers or to Eastern Washington. Terminal operations are complex.

Orange and white gantry cranes load and unload containers from ships.

Top picks, rubber-tired gantry cranes and yard hostlers are operated by longshoremen to move containers around the terminal.

Local import containers are mounted on chassis (wheels) when they come off the ship, or stacked to wait for delivery to local warehouses.

Export containers are stacked to wait for loading to a specific vessel. Many containers move from vessel to on-dock or near-dock rail, then speed quickly to consumer markets in the Midwest or East Coast. A longshoreman supervises terminal operations. Customs and Border Protection (CBP) has offices at each terminal and inspects containers.

All containers pass through Radiation Portal Monitors (RPMs) before leaving the terminal.

Targeted containers are also inspected by x-ray Vehicle and Cargo Inspection System (VACIS) machines on the terminal.

CBP also performs some “tailgate” exams at the terminal; intensive exams are performed off site.

A Customs and Border Patrol agent examines containers going through Radiation Portal Monitors. Port of Seattle container business overview

The Port of Seattle is one of the nation’s largest container ports and a critical US international trade gateway. Seattle 2008 2009 2010 2011 2012 Minneapolis/ St. Paul TEUs 1.70 1.58m 2.15m 2.05m 1.89m Detroit North New York Rank 9th 8th 6th 6th 8th Chicago Baltimore Columbus

Kansas City Seattle’s competitive advantages: St. Louis

Memphis • Naturally deep-water port

• Eighteen ocean carriers with direct service to Asia, Europe, Latin America, and domestic markets CSX connection Norfolk Southern connection • Less than two miles from two Class I rail yards and efficient connections to the I-5 and I-90 corridors About 70% of import cargo moving through the Port of Seattle • 4th largest distribution center network in the U.S. travels by rail to the Midwest and beyond.

• One of fastest rail transits to Chicago of any West Coast port.

• Green Gateway: Lowest carbon emissions for cargo moving through Seattle between Asia and the eastern U.S.

Terminal 5 Terminal 18 Major carriers: APL, Hamburg Süd, Hyundai, MOL, Westwood Major carriers: ANL-US Lines, CMA CGM, Maersk Line, Matson On-dock rail Navigation, Safmarine On-dock rail Terminal 30 Major carriers: China Shipping Terminal 46 Near-dock rail (less than 2 miles to BNSF and UP yards) Major carriers: COSCO, Hanjin, “K”-Line, MSC, Yang Ming Near-dock rail (less than 2 miles to BNSF and UP yards)

Vancouver, BC

Bellingam Portage Bay 90 97 195

520 S Michigan St Everett Airport Way S

2 Spokane Seattle 2 5

S. Dearborn 4th Ave 101 Kent/Auburn Wenatchee UPRR Intermodal Argo Yard S Spokane St Tacoma 90 519 S Royal S Royal Brougham BNSF Intermodal Yard (SIG) Olympia 410 Lake Union Downtown 99 395 E Marginal Way

45th. NE Seattle 5 12 Yakima Alaskan Way 12 Westlake Ave N Terminal 46 Terminal

Denny Way Denny Terminal 115 Tri-Cities World Trade Terminal 30 106 Terminal 82 Center Terminal 104 108 97 Aurora Ave / Hwy 99 Pier 34 Pier 28 Duwamish Waterway To Terminal 117 ► Broad St W Marginal Way SW 99 99 Bell Harbor Marina Terminal 18 Terminal 102 Pier 17 84 Terminal 103 Portland, OR Pier 69 Pier 16 Bell St. Pier/ Harbor Island Cruise Terminal Marina Terminal 10 Terminal 5 SE Centennial / Myrtle Edwards Park Pier 69 Bell Harbor Port of Seattle Port International Terminal 5 Seattle-Tacoma Headquarters Conference Center International Airport Jack Block 13 Miles N Park ►

Elliot Ave W Pier 2 Freeway Seattle West Terminal 86 Harbor Ave SW 15th Ave W Grain Facility Pier 2 Uplands Elliott Bay SW Admiral Way CEM Fauntleroy Way SW Kent Valley Property Distribution Centers Terminal 91 15 Miles ►

Emerson St. Smith Cover NW Market St. NW Market Magnolia Cruise Terminal Fishermen’s Bridge Shilshole Terminal Bay Maritime Industrial Marina 54th St. Center 32 Ave NW

Seaview Ave NW Hiram Chittenden Locks

W Commodore Way Puget Sound Bellevue Shilshole Bay Lake 405 Washington 520 90 5 Sea-Tac Downtown Airport Color Key Legend of Map Symbols Seattle

Container Cruise Industrial & Interstate Recreational Freeway Terminals Facilities Commercial Properties 5 Moorage Primary Road General Purpose Fishing/Workboat, Parks Secondary Road Marine/Cargo Commercial & 99 State Highway Public Shoreline Terminals Recreational Moorage Access & Parks Railroad Puget Sound Commercial Moorage Washington depends on world markets Washington state exports the most on a per capita basis, with shipments totaling $64.6 billion in 2011. Exports are a 40% key driver of job growth and economic prosperity, with 8,000 of jobs in Washington state are Washington companies in the export business. The Port of tied to international trade Seattle is Washington’s export gateway to the world.

Competitive threats to the Port of Seattle’s container business

Our region’s container ports generate 22,892 jobs associated with the transportation and logistics sector, and are critical to Pacific Northwest exporters.

Competitive ports and imports give Northwest exporters an edge in international trade by providing:

• Greater vessel capacity and container availability

• Lower shipping costs due to greater efficiency and supply of equipment

• More frequent calls by ocean carriers serving more export markets Puget Sound ports face intense competition for Midwest cargo.

• Shorter time to market Washington and British Columbia port volume trends 4500

The competition over discretionary cargo is intensifying. 4000 About 70 percent of Seattle’s import volume is discretion- 3500 ary cargo headed inland and could be shipped through any number of ports. 3000 U E T 2500 Canadian and East Coast ports increasingly target cargo that 2000 hou sa nd s

traditionally has passed through American West Coast ports. T 1500

East Coast ports have rapidly expanded market share 1000

in the Asian trade lane, from 15% in 2000 to 30% in 500 2012, and have obtained hundreds of millions of federal 0 dollars to deepen their waterways and build new port 2005 2006 2007 2008 2009 2010 2011 2012 WA Ports BC Ports infrastructure.

U.S.-bound cargo accounts for a growing percentage and 4-5 million TEUs in subsequent years—significantly of Port Metro Vancouver’s overall volumes. The Port of larger than the current volumes of the ports of Seattle, Prince Rupert has grown quickly and plans a two-stage Tacoma and Portland combined. About 10,000 Puget expansion that would handle 2 million TEUs by 2020 Sound jobs are at risk of diversion to Canadian ports.

Port of Seattle Commissioners: Tom Albro, Stephanie Bowman, Bill Bryant, John Creighton, Courtney Gregoire

Chief Executive Officer: www.portseattle.org Tay Yoshitani 09/13