Joint Impact Presentation

Joint Study Session Preview September 30, 2014 



1

Contents 
1.  Why a Joint Study 
2.  The Ports' Role in the Regional Economy 
3.  External Threats & Opportunities 



2

1. Why a Joint Study 

3

Section Overview 
1. What's in and what's out of the Joint Study 

2. Joint comparative advantages 

3. Together, a globally ranked PNW Gateway 


4

Why a Joint Study 


Separate studies cannot be added together  
results in double-counting due to methodology
constraints 
5

What's In the Study Business Lines 
Both ports serve Marine Cargo among other lines of business. 
In Marine Cargo, they share interests, compete, and collaborate to serve the
regional economy. 





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What's In the Study Marine Cargo 




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Why a Joint Study 

Together, the Ports 
>   Are a Gateway through the Pacific Northwest for exports and imports 
>   Share waterways, roads and railways to distribute goods and thereby drive
regional infrastructure investments 
>   Influence major sectors of Washington's economy, including
Manufacturing, Warehousing, Transport & others 

8

Joint Gateway Comparative Advantages 
Joint expertise, a combined strong efficient 
labor force and managerial experience 
Efficient modes of infrastructure including: 
Marine Infrastructure 
Rail Facilities 
Trucking 
Storage and Warehousing 
Capability of handling a diverse spectrum of cargo, including
goods, grains, minerals and more 

9

Ports are gateways for
exports & imports with
shared waterways, roads
& railways to distribute
goods. 



10

The Ports' Maritime Activity 
Together, the Ports of Tacoma and            Top GATEWAYS by TEUs, 2013 
Seattle rank 3rd among North              Rank Port           TEUs
American Gateways by total TEUs.               1 LA/Long Beach     14,599,145
2 NY/NJ              5,467,345
Apart, the Ports ranked 9th                       3 Seattle & Tacoma    3,461,672
and 12th. (2013)                                     4 Savannah           3,034,010
5 Vancouver          2,825,475
Source: Association of American Port Authorities, 2014. 
Twenty-foot Equivalent Unit (TEU) = Standard unit for
describing a ship's cargo carrying capacity 
36.1 million 
short tons of cargo moved 
through the two ports (2013) 
21.2 million 
short tons were international containerized cargo
(2013) 

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2. The Ports' Role in the
Regional Economy 
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Section Overview 
1.  The Role of Ports in our Economy 

2. Methodology of impacts overview 

3. Breakout of the types of impacts regionally 

4. Fiscal impacts of Marine Cargo on State 
& Local governments 

13

Role of Ports in Our Economy 
Ports are critical infrastructure to facilitate
trade, including both imports and exports 

Exports are important because they grow
regional and national economies 
Global cities have strong international trade 

14

Regional Impacts Overview 



More than 1,000 businesses    Custom-built model leveraging business
surveyed                      surveys (Martin Associates) 
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Regional Impacts Overview 
Washington State's reported Gross Domestic Product (GDP)
totaled $409 billion in 2013 
$4.3 billion in statewide business revenue generated by the
Ports (Direct Revenues) 
The ports' economic activity is affiliated with a combined total of
$138 billion in total economic activity to the state, which is onethird
of Washington's GDP (2013) 
Sources: Martin Associates; Washington State Dept. of Revenue, 2014. 






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Direct Jobs Impact 
18,900 
Direct Jobs 
Joint Maritime 
Cargo Activity 

Surface 
Terminal & Dist.                               Marine Cargo 
Transport: 
Activities: 7,900 Jobs                      Services: 5,500 Jobs 
5,500 Jobs 

Truck                             Warehouse        Distribution Centers                     Shipyards/           Port Authority &        Barge/Bunkers 
(3,690)                                                                                                                                     (352) 
(2,184)                (1,834)                          Ship Repair            Government 
(1,692)                (1,871) 


Rail                              ILWU/                Terminal                              Agents &                               Surveyors/Chandlers 
(1,831)                         Dockworkers             (1,801)                            Forwarders         Towing & Pilots         /Misc. Services 
(279)                                                                                         (2,069)                                                      (741)                                        (542) 
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Business Revenues by Major Category 
$4.3 b in 2013 




Source: Martin Associates                                                                                                                     18

Business Revenues by Major Commodity 




Source: Martin Associates                                                                                                                     19

Indirect Impact 
11,100 
Indirect Jobs 
(2013) 
Impacts Across Washington 
Types of Indirect Spending 


Parts & Equip.             Business Services              Office Equip. 
Suppliers                                                                             Maintenance 
& Repair 


Fuel                   Communications 
& Utilities 

20

Induced Impact 
18,100 
Jobs supported by spending from direct
Induced Jobs                 employment by ports businesses.
(2013) 

Types of Induced Spending 


Housing                   Food                 Transportation             Restaurants 


Home              Health Care             Entertainment 
Furnishings 

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Every dollar of income to Port-related direct jobs
correlates to an additional $2.70 in income in the
Seattle & Tacoma area 
The Ports generate . 


$1.1 b         $554.3 m          $2.4 b            $4.1 billion 
Direct           Indirect            Induced          in Total Income 
Income         Income          Income         & Re-Spending 
(2013) 

Source: Martin Associates.                                                                               22

Regional Fiscal Impacts (2013) 
Maritime Cargo Activity 

$379 m 
in State & 
Local Taxes 

$231 m                   $148 m
Washington                 Counties &
State                           Cities 

Source: Martin Associates. 
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3. External Threats 
& Opportunities 
24

Section Overview 
1. Gateway container declining market share 
2. Industry changing significantly to ever larger ships 
3. Other global infrastructure expansions 

4. Our opportunities and role as the PNW Gateway 


25

Seaport Industry Challenges 
Market Share 
Container volumes on North America's West Coast
have increased more than Seattle & Tacoma's share 
Seattle & Tacoma 
Millions of TEUs                                                                           % of West Coast 
Seattle & Tacoma                 North America
40.0            Market Share % 
15%                                                      West Coast TEUs                 16%
35.8    36.5 
14% 
35.0        14%   13%   13%   13%        32.4   33.2 
32.1           32.9    33.6                     14%
13% 
29.5                        27.8 
12% 
30.0                                                                         12%
27.0                        11%    11%    11% 
10% 
24.5                                                           10% 
25.0                                                                   9%    10%
21.9
19.1   19.4
20.0                                                                         8%
15.0                                                                         6%
10.0                                           Seattle & Tacoma TEUs        4%
3.6     4.2     4.1     3.9 
5.0    2.9                                        3.6         3.6    3.5    3.6 
2.6     2.9     3.2                                               3.1                              3.5      2%
0.0                                                                             0%
2000    2001    2002    2003    2004    2005    2006    2007    2008    2009    2010    2011    2012    2013
Source: AAPA, 2014                                                                                                26

Ships Have Gotten Bigger 
Ultra Large Container Ships (ULCS) 
require major investments at ports 




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Why The Big Ships 
Competition 

Industry                                                                Panama & Suez
Consolidation                                                            Canal Expanded Use 


Larger 
Lower Cost per                               Ships                                 Anticipated 
Unit Shipped                                                                   Trade Growth 

Rising Fuel 
Prices 

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External Threats Include  
Other ports' big ship infrastructure investments 
LA / Long Beach 
Prince Rupert & Vancouver 
East Coast & Gulf Ports 
Regional and local transportation infrastructure
needs are critical for the ports and the regional
economy 
Expanded use of the Panama & Suez canals add
to competitive pressures 
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Opportunities 
Invest in regional infrastructure projects to improve freight
mobility: SR 167 & SR 509 
Leverage the strengths of the two ports as the 3rd largest
gateway in North America 
Facilitate goods flow to and from the Midwest United
States and Canadian destinations 
73% of port cargo flows to the Midwest states 
Ports cargo reaches at least 41 US states 
Foster growth in Asia markets, Washington State exports
and manufacturing 

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