Minutes

Commissioners                                             Tay Yoshitani 
Chief Executive Officer 
Stephanie Bowman 
Commission Co-President 
Courtney Gregoire                      P.O. Box 1209 
Commission Co-President          Seattle, Washington 98111 
Tom Albro                        www.portseattle.org 
Bill Bryant                                206.787.3000 
John Creighton 
APPROVED MINUTES 
COMMISSION SPECIAL MEETING MARCH 27, 2014 
The Port of Seattle Commission met in a special meeting Thursday, March 27, 2014, at Port of
Seattle Headquarters, Commission Chambers, 2711 Alaskan Way, Seattle, Washington. 
Commissioners Albro, Bowman, Bryant, Creighton, and Gregoire were present. 
1.   CALL TO ORDER 
The special meeting was called to order at 1:09 p.m. by Stephanie Bowman, Commission Co-
President. 
2.   EXECUTIVE SESSION pursuant to RCW 42.30.110 
None. 
3.   MINUTES 
No minutes were proposed for approval on this date. 
PLEDGE OF ALLEGIANCE 
4.   SPECIAL ORDERS OF BUSINESS 
"THE SEATTLE MARITIME INDUSTRY: DECLINE OR RENAISSANCE?" 
In addition to the Port of Seattle Commissioners, the following individuals participated in the
roundtable discussion: 
Andrea Riniker, Deputy Mayor, City of Seattle 
Steve Sewell, Maritime Lead, Washington State Department of Commerce 
Brian Thomas, Principal and Chief Operating Officer, Kvichak Marine 
Jan Koslosky, Vice President of Supply Chain Management, Ocean Beauty Seafoods 
Charlie Costanzo, Vice President-Pacific Region, American Waterways Operators 
Captain Mike Moore, Vice President, Pacific Merchant Shipping Association 
Tay Yoshitani, Chief Executive Officer, Port of Seattle 
Sally Clark, Councilmember, City of Seattle 
Thomas Barnard, Policy Analyst, Port of Seattle 
Doug Dixon, General Manager, Pacific Fishermen Shipyard 
Vince O'Halloran, Branch Agent, Sailors Union of the Pacific 
Dave Gering, Executive Director, Manufacturing Industrial Council 

Digital recordings of the meeting proceedings and meeting materials are available online  www.portseattle.org.










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THURSDAY, MARCH 27, 2014 
Admiral John Lockwood, Ret., President, Seattle Marine Business Coalition 
John Odland, Vice President, Macmillan Piper Inc. 
The following materials were provided to the roundtable participants: 
Maritime Industry Workforce presentation from Mr. Barnard 
2013 Washington State Maritime Cluster Economic Impact Study from the Economic
Development Council of Seattle and King County 
Three Seattle Times articles by Coral Garnick and Susan Kelleher on maritime and fishing
topics 
Map of Port of Seattle facilities around Elliott Bay 
Department of Commerce presentation from Mr. Sewell 
Port of Seattle Working Waterfront brochure 
Port of Seattle 2014 Regional Transportation Update 
Commissioners Bowman and Albro welcomed the panelists and participants and outlined the
purposes of the roundtable conversation. Examination of opportunities and obstacles to growth of
Seattle's maritime industry,identification of investment and public policy changes at all levels of
government needed to facilitate growth in the maritime industry, and discussion of the Port of
Seattle's role in fostering maritime industry growth were given as priorities for the meeting. The
health of the maritime industry was described as critical to the expansion of middle-class jobs and
economic opportunity in the Pacific Northwest.
4a.  Maritime Industry Impact on the City of Seattle 
Deputy Mayor Riniker commented on the importance of the maritime sector to Seattle's economic
health and jobs. She spoke of Seattle's natural deep-water port and the need for the port to remain
globally competitive. She stressed the value of all of Seattle's interest groups' working
collaboratively to define an approach to marine and industrial business that balances and benefits
all interests, such as freight, bicycles, and clean water.
Ms. Riniker commented on Mayor Ed Murray's openness to discussing industrial land usein the
Duwamish Manufacturing and Industrial Center, development of a City freight plan, opportunities
for a heavy-haul corridor, and related driver and permitting issues and funding alternatives. She
commented on interest in discussion of alternatives for stormwater regulation and compliance
locally and at the state level. Ms. Riniker announced the Mayor's upcoming Maritime Industrial
Summit in May to address making progress on issues relevant to the maritime industrial sector. 
4b.  Washington Maritime Industry Regional Impact 
Department of Commerce Maritime Lead Steve Sewell spoke about Governor Inslee's priorities for
revitalizing Washington's economy and building a 21st centuryworkforce.  The governor has
focused on major industrial sectors, including maritime, for which Mr. Sewell is the sector lead.
Elements of the sector, for which he serves as an advocate, are cargo, logistics, and freight; fishing
and seafood processing; shipbuilding; recreational boating; and passenger vehicles, such as
ferries. He commented on maritime's perception as an old, traditional industry, but noted that it
embraces sophisticated, modern technology and is a growing sector. He echoed the industry's call

Minutes of March 27, 2014, proposed for approval on May 26, 2015.

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THURSDAY, MARCH 27, 2014 
for communities and regulators to stop hindering maritime enterprises and noted that the industry is
not well understood in Seattle, even though there are cargo terminals along the downtown
waterfront and the Ship Canal runs right through the city. 
Mr. Sewell noted a number of factors at play to consider while forming statewide coalitions to better
market the maritime industry collectively. These include land use, transportation infrastructure,
dynamics between the ports of Tacoma and Seattle, federal tax policy including reform of the
Harbor Maintenance Tax, role of fishing throughout the maritime sector, workforce development
needs, and the importance of have a government champion for the industry in Olympia. 
4c.  Opportunities and Challenges for Industry 
Brian Thomas, Chief Operating Officer of Kvichak Marine, described the differences between boat
building and shipbuilding, especially with regard to smaller infrastructure needs and differences in
water dependency for boat building. He commented on the challenges of regulatory incursion by
the City of Seattle, including on compensation issues, and the uncertainties for business connected
to the speed with which new regulations are progressing.  He noted the natural reaction for
business investment in a climate of regulatory uncertainty is to pull back, slowing or stifling
potential economic growth. Mr. Thomas commented on challenges related to King County's high
prevailing wage and on the aging of the maritime workforce and the need to recruit younger
workers into the industry. 
Mr. Thomas identified as industry opportunities oil drilling on Alaska's North Slope and related
shipyard activity and recapitalization of the Alaska fishing fleet over the next 20-25 years. He
urged elected officials to advocate for the industry to change the conversation from one focused on
how to stop damaging the maritime industry to one of how to grow the maritime industry. 
Jan Koslosky, Vice President of Supply Chain Management, Ocean Beauty Seafoods, described
the company's activity in Alaska. He noted the role of Alaska Airlines in the seafood industry and
the industry's reliance on the Airport. Mr. Koslosky commented on the growth of business to
respond to emerging consumer markets and trends. He emphasized the importance of robust
distribution networks to the success of the fishing industry. 
Opportunities noted by Mr. Koslosky included the need for a predictable business climate and the
ability of different agencies to work together with a holistic view to support the industry. He noted
concerns over freight mobility through Seattle and the direct impact of City decision making on
factors critical to business and industry. Among these are stormwater regulation and minimum
wage legislation.
Sally Clark, Councilmember, City of Seattle, commented on the challenge of serving a public that
may not have a personal connection to the region's industrial base through friends or family members
or personal experience. She noted the need for transportation infrastructure spending and transit
options to address traffic congestion. Ms. Clark noted that many of the people working in the region
cannot afford to live in the City of Seattle and commented on the challenge that poses.


Minutes of March 27, 2014, proposed for approval on May 26, 2015.

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THURSDAY, MARCH 27, 2014 
Ms. Clark noted opportunities for increased collaboration between agencies on forging common
priorities, especially given new leadership in the Mayor's Office. The prospect of targeting
workforce development to employers' needs was noted as an opportunity for better coordination.
Mike Moore, Vice President, Pacific Merchant Shipping Association, spoke of the interdependence
of trades within the maritime cluster. He described the global shipping trends toward ever larger
vessels with increasing cargo capacity and the drop in container volumes and market share for 
Puget Sound ports. Capt. Moore commented on the need for ports to be competitive while
simultaneously facing new regulatory requirements, such as for reduction of fuel sulfur content. He
noted the challenge faced by suppliers of highly sensitive profit margins. This directly affects
choice of ports and cargo routing options and could attract business away from the Port of Seattle.
Capt. Moore noted his hope that the upcoming negotiation of a new contract with the International
Longshore and Warehouse Union (ILWU) will have a positive outcome.
Capt. Moore commented on the need for more efficient use of terminal space. He noted the
alignment of Canadian government at all levels to draw cargo away from U.S. ports and stressed
the importance of educating the public about these trends and their implications. He remarked on
the need to balance shipping competitiveness needs with safety and environmental regulation,
including costly and challenging stormwater restrictions. Capt. Moore pointed to the Port's
proximity to Asia, Harbor Maintenance Tax reform, pilotage reform, cooperation between the Ports
of Seattle and Tacoma, and development of a coordinated and sustainable strategy for industry 
success as opportunities for Seattle's maritime industry.
Charlie Costanzo, Vice President-Pacific Region, American Waterways Operators, noted that the
public is educable about the importance of maritime industry and urged adoption of bold solutions
to the industry's challenges. He described the origins of the Jones Act, which he said restricts U.S.
coastwise movements, such as barge and towing operations, to be conducted under U.S.
ownership with a U.S. crew, and stressed the need to preserve it.
Mr. Costanzo also advocated Coast Guard inspection for domestic vessels as an opportunity to
level the playing field for domestic vessel companies and drive continuous improvement. The need
for consistent environmental regulatory standards was noted as a challenge to the maritime
industry. A Puget Sound No-Discharge Zone would prevent discharge of treated waste water from
vessels and pose significant cost to the industry.  Discharge of untreated water is already
prohibited.  Mr. Costanzo noted that applying a no-discharge zone to impaired or endangered
areas rather than all of Puget Sound would allow environmental benefits without placing undue
burden on domestic vessel operators. 
Vince O'Halloran, Branch Agent, Sailors Union of the Pacific, spoke in favor of an increase to the
minimum wage. He commented on his concern over loss of regional market share in cargo
operations and noted that exports are dependent on imports and the containers imports provide.
Mr. O'Halloran recommended the Port Commission engage key stakeholders in the maritime
industry, with labor, to find immediate solutions. He suggested focusing on immediate strategies
for reinforcing the region's industrial base and engagement with railroads to improve the routing of
discretionary cargo over land.  He encouraged cooperation between the Ports of Seattle and

Minutes of March 27, 2014, proposed for approval on May 26, 2015.

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THURSDAY, MARCH 27, 2014 
Tacoma. Mr. O'Halloran stated that labor is committed to working with other maritime stakeholders
to find meaningful solutions. 
Admiral John Lockwood, Ret., President, Seattle Marine Business Coalition, identified opportunities
for the maritime industry in the upcoming recapitalization of the Alaska fishing fleet, support
services to oil and gas exploration in the Arctic. He noted the need to advocate for state incentives
to attract ship building and described Seattle as an optimal hub for maritime activity in the Arctic.
Adm. Lockwood noted that recent vessel support for vessels operating in the Arctic supported
roughly 400 jobs for an extended period of several months. Much of that work was related to
enabling compliance with environmental regulations.  He pointed to examples of the Seattle
maritime industry's commitment to good environmental stewardship.
Adm. Lockwood pointed out that in the near future, U.S. Navy nuclear vessels would require
decommissioning. Vessels are disassembled, their nuclear reactors are removed, and these are
shipped for disposal to the Hanford Nuclear Reservation in Richland, Washington. This represents
an opportunity for middle-class jobs comparable to fishing fleet recapitalization for the region over a
25-year period. Adm. Lockwood commented on the progress of South Seattle College's successful
career training efforts at the Harbor Island Training Center at Vigor Industrial.
4d.  The State of Maritime Workforce Education and Training 
Mr. Dave Gering, Executive Director, Manufacturing Industrial Council, reported that Seattle Public
Schools, Youth Maritime Training Association, the Manufacturing Industrial Council, and the
Boeing Company are partnering to create a maritime skill and technology center at Ballard High
School. The program will be modeled on an aerospace technology program currently available at
Rainier Beach High School. There are 30 similar programs statewide offered at 160 high schools
through the state of Washington's CorePlusProgram.  The program is designed to develop
analytical skills and mechanical aptitudes that reinforce the knowledge, skills, and abilities critical to
a variety of industrial careers. 
Commissioner Courtney Gregoire underscored the interest at the Seattle Colleges (formerly
Seattle Community College) to serve the industrial sector by helping to prepare new workers
through the college's Seattle Maritime Academy. She encouraged the panel to recommend to the
college ways to better match training to industry needs. She also commented on the benefit of
coordinating the college's programs with those of the Seattle Public Schools. Commissioner
Gregoire highlighted the need for educators and industry leaders to echo the message that careers
in industry are desirable and well compensated. 
Doug Dixon, General Manager, Pacific Fishermen Shipyard, noted that programs such as the
Seattle Maritime Academy and CorePlus are already having a positive impact on maritime industry.
He stressed the importance of having a strategy to raise awareness and involvement among youth
in the maritime sector.
Mr. Dixon noted the need for interagency support through various services, such as public
transportation, to help make maritime education programs successful.  He opined on a lack of
support from City and County governments. 

Minutes of March 27, 2014, proposed for approval on May 26, 2015.

PORT COMMISSION MEETING MINUTES                    Page 6 of 7 
THURSDAY, MARCH 27, 2014 
John Odland, Vice President, Macmillan Piper Inc., commented on the value of cooperation
between the ports of Seattle and Tacoma and the prospect for increased lumber and steel trade
with Japan as that country continues to rebuild in the aftermath of its 2011 earthquake and
tsunami. 
Mr. Odland cited regulatory intrusion, particularly stormwater regulation, as a barrier to industry
success in the region.
Commissioner Creighton commented on the benefits that have accrued to the region as a result of
the Port's willingnessto take risks, such as embracing containerization in the 1950s and cruise
business in the 1990s. He stressed the importance to invest in Port infrastructure and maritime
opportunities in the future. He noted tourism opportunities connected to pleasure yachting and the
need to reform taxing policies that discourage this business. 
Commissioner Bryant opined on the need to raise awareness within the Seattle community of the
importance of the maritime industry and the destructive effects of uncertain regulation. He pointed
to the need for expansion of vocational education, completion of truck routes and SR-509,
investment in infrastructure to attract newer, larger container vessels, and deeper collaboration
between the ports of Seattle and Tacoma.
Commissioner Albro clarified that although no agreements can be made during closed sessions
with the Port of Tacoma under Federal Maritime Commission permission, the product of those
discussions will become fruitful later in open public sessions. He commented on raising awareness
of Seattle's personal connection to the maritime industry, the need to build a cooperative agenda
with other governmental agencies to encourage and grow the industry, and the importance of
defining and advocating for regulatory balance. 
Commissioner Gregoire commented on the importance of a strategy of industry growth that
addresses industry needs concretely and fosters growth of middle-class jobs across the maritime
sector.
Tay Yoshitani, Chief Executive Officer, Port of Seattle, noted the widespread message that the
maritime industry is generally underappreciated. He noted that the ability to pursue many of the
opportunities discussed today as an alliance would differentiate the Puget Sound from competitors
and contribute to industry success.
Commissioner Bowman offered brief concluding comments, noting the 100th Anniversary of
Fishermen's Terminal. 
5.   UNANIMOUS CONSENT CALENDAR 
None. 


Minutes of March 27, 2014, proposed for approval on May 26, 2015.

PORT COMMISSION MEETING MINUTES                    Page 7 of 7 
THURSDAY, MARCH 27, 2014 
PUBLIC TESTIMONY 
As noted on the agenda, public comment was received from the following individual(s): 
Gary Stauffer, with the Youth Maritime Training Association. Mr. Stauffer commented on
the upcoming Seattle Maritime Festival and Maritime Career Day as an opportunity to
promote the maritime industry in Seattle. 
6.   DIVISION, CORPORATE, AND COMMISSION ACTION ITEMS 
None. 
7.   STAFF BRIEFINGS 
None. 
8.   NEW BUSINESS 
None.
9.   POLICY ROUNDTABLE 
See item 4 above. 
10.  ADJOURNMENT 
There being no further business, the special meeting was adjourned at 3:40 p.m. 
Tom Albro 
Secretary 
Minutes approved: May 26, 2015. 







Minutes of March 27, 2014, proposed for approval on May 26, 2015.

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