ITEM NO: ______7c_Supp 2_____ 
DATE OF MEETING: August 7, 2012







Paul Sorenson, Principal 

1

Key points 
Overall costs are crucial for shippers and carriers when
they choose a port gateway. 
Congestion increases costs and decreases reliability. 
Proposed arena location would increase transportation
costs because of congestion. 
Congestion/land use pressures would have a
significant impact on opportunities for Port growth. 

2

Port of Seattle Market
Opportunities are Strong 
Port of Seattle has grown at 3.0
percent annually from 1992 to 2011.
Growth has occurred in all routes. 
Port of Seattle has good
opportunities for growth. Reach
goal of 3.5 million TEUs by 2039
(3%/yr) to 2051 (2%/yr). 
Growth in maritime cargo means
jobs but Port growth depends on an
efficient transportation system and
good access to industrial lands 

3

Port Selection Criteria 
Ocean carriers 
Highest priority is to turn the ship on time and at the lowest cost. 
Difficult financial position putting additional pressure to lower
overall costs. 
Shippers (cargo owners) 
Primary goal is to reduce supply chain costs. 
Reliable market coverage across a broad range of routes with
favorable transit times while minimizing door-to-door cost per unit. 
Anything that increases costs for one port that are not borne by
another port could shift the balance: 
Shippers and carriers are changing ports based upon very slim
margins. 

4

Duwamish M/IC is unique 
There are ~59,000 jobs in the Duwamish M/IC.
This includes a variety of family wage jobs in the following sectors: 
Services (15,147 jobs), 
Wholesale/Trade/Utilities (13,635), 
Manufacturing (13,287), 
Government (6,714), 
Retail (2,520), 
Finance/Insurance/Real Estate (1,231), 
Construction (588), 
Education (322 jobs).
There is a strong linkage between the Port of Seattle container terminals and
activities and employment in the Duwamish M/IC. 

5

Port Gateway Users 
Exporters 
35% of exports via the Port are from firms in Washington State.
Apples from Wenatchee seek two trips/day to the terminals. 
Many exporters are located in the Duwamish M/IC. 
Importers 
Serve local and more distant (discretionary) markets. 
Local firms receive goods that are inputs to manufacturing. 
Boeing airplane parts. 
Increase in cross-docking by gateway traffic, which needs to be
located close to Port. 

6

Impact of the Arena 
Congestion from Arena (vehicles and pedestrians)
increases costs and decreases the efficiency of the Port. 
Increased gentrification of the north Duwamish area
will increase property values, forcing more industrial
firms to seek more distant locations or go out of
business. 
The Port has good opportunities for growth but the
proposed arena could negatively impact its ability to
capitalize. 

7