PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       7c 
STAFF BRIEFING 
Date of Meeting     January 7, 2015 
DATE:    January 8, 2015 
TO:      Ted Fick, Chief Executive Officer 
FROM:    Kurt Beckett, Deputy CEO 
Linda Styrk, Managing Director Seaport 
SUBJECT:  Seaport Briefing  Terminal 5 (T-5) Modernization Project, East and West 
Waterway Deepening Project, T-5 Interim Uses and Pier 34 Mooring Dolphins 
OVERVIEW 
This briefing is a status update to the Port Commission on: 
- T-5 Big-Ship-Ready Modernization Project - scope, schedule and budget 
- US Army Corps of Engineers (USACE) Seattle Harbor Deepening Project 
- T-5 Temporary Interim Uses for marine cargo 
- Pier 34 Mooring Dolphins Project (mooring-infrastructure for marine cargo vessels) 
In order to strengthen the Puget Sound Trade Gateway, promote maritime jobs and attract more
marine cargo for the region, the Port of Seattle continues its strategic response to the competitive
pressures that are reshaping the global container shipping industry, while also continuing its 
long-standing strategy of a diversified seaport business. Unprecedented measures underway
include the creation of the Seaport Alliance with the Port of Tacoma and modernizing T-5 to be
big ship ready for the larger vessels that are changing the international container business. 
Projects covered in this briefing are cornerstones of the Seaport Business Plan for 2015-20 and
advance several Century Agenda goals, including increased quality job opportunities for local
communities in maritime and logistics, momentum for workforce development programs and
advances port environmental programs. 
The T-5 container terminal lease agreement between the Port of Seattle (Port) and Eagle Marine
Services, Ltd. was terminated in July 2014 which provided an initial step in the T-5
modernization project. The Port Commission also directed staff to seek interim business
opportunities at T-5 to help maximize use of public assets, create jobs and generate revenues to
support the facility investments to be big ship ready. Business options are limited to maritime-

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 8, 2015 
Page 2 of 8 

related, water-dependent uses based on the facility permit, bond covenants and Port strategy to
promote maritime-industrial jobs. One interim use is a short-term lease and berthing agreement
proposed by a local company, Foss Maritime, with over 125 years of maritime industry
experience in the Puget Sound. Foss Maritime proposes several potential interim uses and these
are covered in more detail below. 
BRIEFING 
Terminal 5 Modernization Project 
Staff continues to advance and refine project design so that it is aligned with future needs of
prospective container terminal tenants. Staff is working to incorporate elements that advance our
environmental stewardship goals including storm water treatment, energy-efficiency
improvements and electrified container handling equipment. 
Project scope, schedule and budget updates include: 
Scope  the work remains consistent with the three original core elements: 
1.   Dock strengthening  for larger gantry cranes and cargo handling 
2.   Berth deepening  for deeper drafts of larger vessels while at berth 
3.   Power upgrades  for larger cranes and increased terminal operating needs 
Schedule  Consistent with original schedule, including successful 30% Design Completion at
the end of 2014. 2015 milestones: 
2015 1st half    Apply for Permits, SEPA Publication 
2015 Mid-year   60% design 
2015 1st half    Solicit Tenant Interest 
2015 2nd half    90% Design Completion (depending on new tenant status) 
Target completion for permitting is mid-year 2016 and construction mid-year 2018. The date of
completion will depend in part upon timing of completion of design and permitting relative to
the in-water work windows associated with protection of fish and wildlife habitat (early spring 
through mid / late summer), and coordination with tribal fishing interests. Final design work will
take into consideration associated tribal fishing activities, coordination with Seattle City Light 
for power upgrades, and potential customer specific improvements yet to be determined. Staff
plans to solicit demand for container terminal tenants in the first half of 2015. Ideally, the final
design phase would incorporate future tenant needs to mitigate design or construction
modifications needed after tenant selection. Commission request for construction authorization is
scheduled for mid-year 2016 and to commence in early 2017.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 8, 2015 
Page 3 of 8 

Budget  Spending and updated cost estimates as of Q4 2014: 
Projected spending through 2014      $1.4 million 
Approved for 30% Design         $5 million 
Project Estimated Cost Range        $180-250 million 
The primary factors influencing the Port's total cost estimates for completing the work are the
characteristics of the sediments associated with berth deepening, should power demand
requirements necessitate an additional substation, and any additional phasing associated with
constructing around in-water work windows. Staff will continue to provide periodic updates to
Commission, and as key milestones are achieved. 
East / West Waterway Deepening Project 
Reconnaissance Study Completed Fall 2014, Feasibility Study funded at full capability for 
2015: The Port of Seattle and the U.S. Army Corps of Engineers (USACE) have partnered on a 
project, also known as the Seattle Harbor Channel Deepening Project, to evaluate the navigation
channel depths in the East and West waterways to accommodate the current and future classes of
ultra large container ships navigating into Port marine container terminal berths. The
Reconnaissance Study of the need to accommodate deeper drafts of the larger container ships in
deployment now and expected in future was completed last fall along with the Federal Cost
Sharing Agreement (FCSA). This kicked-off the start of the three year Feasibility Study phase
and the Port's 50% cost share of $1.5M over the three year period. 
Due to great progress on the Feasibility Study, the Port has just learned that the U.S. Army Corps
will provide the full federal share of $500,000 this year, which means the project is funded at 
their maximum capability, up from $200,000 that was originally included in the President's
Fiscal Year 2015 budget. The Port seeks an additional $500,000 in the President's Budget for
Fiscal Year 2016, due in mid-February 2015. 
Pier 34 Mooring Dolphins 
Project on track for completion in March 2015: Scope, schedule and budget is on track for
completion target date of late March 2015. The two refurbished mooring berths expected to open
in April. This asset stewardship investment in Port infrastructure aligns well with Century
Agenda goal of growing the maritime cluster. 
T-5 Temporary Interim Uses 
The Seaport has aggressively explored and continues to pursue opportunities for temporary
interim maritime business opportunities at T-5 during its modernization, with an emphasis on

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 8, 2015 
Page 4 of 8 

alignment with the Commission's Century Agenda, and a pragmatic eye toward commercial and
regulatory constraints to such uses. 
Key benefits from temporary interim uses 
Revenues to Seaport  offset T-5 interim operational costs and bolster bottom line. 
Jobs  direct jobs to maintain a healthy maritime sector as a full-service port. 
Regional economic impact  indirect and induced jobs to bolster the regional
economy. 
Regional tax revenues  support public sector investments in services and
infrastructure. 
T-5 care-taker cost considerations 
Security - three guards, 24/7 for perimeter security estimated at $1M annual. 
Stormwater - stormwater fees estimated at $660K annual. 
Utilities  water, electricity, natural gas, sewer, telecommunications, as needed. 
Maintenance  normal and customary requirements while in caretaker status. 
Other considerations for temporary interim uses at T-5 
Minimize Port investment to accommodate uses. 
Zoning  limited to industrial uses  no commercial, retail or other uses allowed. 
Bond Covenants  uses must be water-dependent and aligned with covenants. 
Permits  uses must be water dependent and aligned with existing Substantial 
Development Permit held by the Port. 
Modernization Construction  temporary interim users must enable the Port's
continued access for T-5 Modernization Project to proceed on schedule. 
Term  temporary interim users must be willing to vacate as early as June 2018. 
Economic Viability  use creates a mutually beneficial outcome for both parties. 
Prospective Opportunities Explored for Temporary Interim Uses 
Storage  Prohibited by bond covenants if not water-dependent. 
Bulk cargo  Liquid bulk requires major capital investment; dry bulk limited to
commodities that do not require major infrastructure and that would not damage the
yard with high imposed loads. 
Tramper vessels  Vessels with irregular service schedules, proved cost-prohibitive
due cargo handling equipment needed for operations and nominal revenue potential.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 8, 2015 
Page 5 of 8 

Breakbulk (scheduled) service  Several opportunities, but require seven to 10-year
commitment to establish service; not viable for temporary interim timeframe due to
the need for capital investment in special equipment and nominal revenue potential. 
Autos/Ro-Ro  Strong interest from import/export of autos and heavy equipment, but
requires a long term lease commitment to establish service due to need for major
capital investment in auto processing facility and nominal revenue potential. 
Project cargo  Viable prospects are limited to those with project schedules that
dovetail with terminal modernization project, are water-dependent, do not require
gantry cranes, and enable continued Port access for construction, including
interruptions to utility service. Viable projects have potential for appropriate revenue
to Port, including offsetting operational cost during caretaking status. 
Commercial Moorage  There is interest in short-term and seasonal moorage of
vessels at T-5. Moorage is limited to space available around the areas out of service
during the construction phase of T-5 modernization. The Port proudly serves the
homeport moorage needs of a majority of the North Pacific Fishing Fleet at Terminal 
91, thus further temporary interim moorage at T-5 would generate nominal revenue
and create few jobs. 

Foss Maritime Temporary Interim Use Opportunities 
Overview  
In anticipation of Eagle Marine Lease termination to modernize T-5 for the ultra large
container ships, Port staff reached out to a number of businesses, including Foss
Maritime, to identify potential temporary interim uses of the terminal during the
modernization project. 
By May of 2014, Foss and the Port began discussing the potential of using a Portion
of T-5 as a place to receive and handle logistics for modules for a Liquid Natural Gas
(LNG) plant that would be transported by barge to Canada for assembly into a final
plant. 
In June of 2014, when Foss Maritime learned the T-5 berth area offered up to 50 feet
of water depth, they expressed interest in additional berth and yard area at the
terminal to temporarily support offshore oil and gas exploration and support vessels. 
Foss has identified additional prospects for breakbulk and bulk business that would
complement the LNG project and prove financially viable once Foss was mobilized
to support its two initial customers. 
LNG Plant Modular Assembly Project 

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 8, 2015 
Page 6 of 8 

A consortium of European companies solicited bids from two global
construction firms to construct an LNG plant in Prince Rupert, Canada. Foss
has submitted a bid for the logistics-related activity that would utilize 50-100
acres of T-5 to assemble modules for the LNG plant. 
Major components would be delivered to T-5 by truck, rail and breakbulk
ship, where they would be assembled into modules then subsequently
delivered to Prince Rupert by truck and barge for final assembly over a 3-5
year period. 
This project has the potential to generate substantial direct family-wage jobs,
significant revenue to the Port, and generate broad economic impacts to the
region. It would dovetail seamlessly with the Port's modernization of T-5; this
project was to be awarded in December 2014, now likely January 2015. 
Vessel Berth Moorage and Provisioning 
As a complement to the LNG project outlined above, Foss, in partnership with 
Shell, has expressed interest in leasing approximately 50 acres at T-5 for use
as a short-term berth for vessels used in oil and gas exploration in Alaska. 
All activities related to this use would be limited to research and exploration. 
T-5 would receive, inventory, and stage equipment and supplies that would be
loaded to a fleet of vessels, including exploration drill rigs, ice-breakers,
provisioning vessels, environmental response vessels, tugs and barges for
seasonal operations in Alaska. 
The fleet of vessels would depart for exploration in June and return to
homeport late summer for over-wintering October through May. 
Over-wintering moorage plans currently indicate 8 vessels to homeport at T-5
and 3 vessels to homeport in Everett. The project would commence in March
of 2015 for two years and could extend up to four years assuming it does not
impact T-5 modernization schedule. 
Use of T-5 for this berth and provisioning activity is expected to generate at
least two hundred quality family-wage jobs at the terminal, significant
revenue to the Port, generate state and local tax revenue and support the
region's economy and Puget Sound maritime cluster. 
With Foss Maritime mobilized for temporary interim operations at T-5, the ability to pursue
other business at T-5 would be significantly enhanced. Examples include: 
Aggregates for Sea-Tac 16 Center Runway Reconstruction Project  With the
terminal up and running, Foss would be in a position to compete to furnish

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 8, 2015 
Page 7 of 8 

roughly 100,000 tons of aggregates to Sea-Tac's center runway repaving project..
Vessels would deliver aggregates to T-5 where they would be transported to
SeaTac International AirPort over the road in a manner that would reduce air
emissions and regional traffic congestion versus traditional routes. 
Tramper, Breakbulk and Ro-Ro  With the terminal up and running, Foss would
be able to provide terminal services to tramper vessels requiring a single Port call,
as well as short-term scheduled services for breakbulk and ro-ro vessels. Such
services would harmonize with the Port's T-5 modernization, while generating
incremental revenues to the Port, jobs at the terminal, and attendant regional
economic impacts. 
Benefits of Temporary Interim Uses to the Port  
T-5 Modernization -- Opportunities for viable interim uses of T-5 are limited, given
project constraints. Interim uses identified above have potential to offset caretaker costs,
generate incremental revenue for the seaport capital program, including T-5
modernization project elements such as dock strengthening, stormwater treatment and
energy-efficient power upgrades and lighting.. 
Century Agenda Alignment  advances several Century Agenda goals, including
increased quality job opportunities for local communities in maritime and logistics,
momentum for workforce development programs and advances progress and investment
in Port environmental projects. 
Seaport Plan of Finance  Optimizing utilization of T-5 during modernization,
contributes needed Seaport revenues to improve financial performance under the
Seaport's Plan of Finance. 
Seaport Alliance - Sound financial performance is a timely factor in larger financial
assessments necessary during the final implementation of a Seaport Alliance between the
Ports of Seattle and Tacoma. 

Moving Forward 
Early Access Agreement  If the Port is to pursue the above temporary interim uses, Foss
Maritime, in meeting the schedule requirements of its customers, needs to undertake
Tenant Improvements at this time to prepare the terminal for temporary interim use. 
Negotiate and Execute a Lease with Foss Maritime  Foss has expressed interest in
entering into a two year lease agreement with the Port for approximately 50 acres
including dock space with options to expand premises and extend term with the Port.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
January 8, 2015 
Page 8 of 8 

Time is of the essence if the Port is to secure one or more of the above interim
opportunities at T-5. 
Coordination of T-5 interim temporary use with the Port's Modernization Project  
ongoing. 
ATTACHMENTS TO THIS BRIEFING 
Seaport Terminal 5 Briefing Presentation 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
September 11, 2014  Second reading of Resolution No. 3695, PACECO cranes surplus 
August 19, 2014  First reading of Resolution No. 3695, PACECO cranes surplus 
July 22, 2014  Lease termination agreement authorization for Terminal 5 
June 3, 2014  Harbor Island long-term environmental service agreement commitment
authorization 
May 13, 2014  Terminal 5 Facility Modernization Briefing