Item 7a Supp
ITEM NO: _7a Supp DATE OF MEETING: March 31, 2009 CUSTOMER RECOVERY STRATEGY AND CLEAN AIR PROGRAM Gain Competitive Advantage Get Clean Air Now Customer Support Package Why? Crisis Continues To Deepen Anchored Container Ships Approaching 12% Of World Fleet Transpacific Trade Down 25% YTD Seattle Container Volumes Down 37% In February No Market Turnaround Expected Near Term Supply Chain Pressure For Cost Reductions Consumers Shippers Carriers Terminals Ports Other Ports Taking Action Direct Customer Requests For Support Keep Current Cargo/Position To Expand Container Lease Revenues Provide 81% of Net Operating Income (NOI) Container Business is a Major Driver for Jobs Opportunity To Solidify New Business 2 What a difference TEUs make TEUs 1 million 2 million 3 million Jobs 9,588 18,982 28,377 Payroll $789.6M $1,560M $2,331M State/Local $71.9M $142M $212M Taxes Source: John Martin and Associates POS Container Model 3 Customer Support Package What We Give: One Year Program Support Equal Approach to all Marine Terminal Operators (MTOs) Combined Direct and Deferred Cost Reductions Key Elements: Crane Rent Intermodal Yard Fees Payment Terms Tenant Specific Items Dollar Impact: Direct Costs = $2.5m Reduction in NOI (June 2009 June 2010) Deferred Costs = $4.6m (Money back to Port) Proportional to Los Angeles/Long Beach Program 4 Customer Support Package What We Get: Competitive Positioning Green Language in All Terminal Leases Truck Program Commitment in All Terminal Leases Tenant Specific Lease Concessions 5 Proposed Environmental Commitments In Terminal Leases Northwest Ports Clean Air Strategy Cargo Handling Equipment, Trucks, Assist W/Vessels Stormwater Anti-idling Energy Conservation Spill Response Recycling Annual Review Process 6 Why Now For A Truck Plan? 2010 Standard Set in Northwest Ports Clean Air Strategy Industry and Drivers Need Time to Make Changes to Meet That Standard Truck Program Commitment in Leases Air Gets Cleaner Now for Workers & Community Residents Outcome of Two-year Process Seeking Input From Stakeholders 7 Legal Landscape Concession Model Status and Prognosis of Legal Challenges to LA Plan Lack of Legal Authority Here 8 Clean Air Program Planning Process Process began spring 2007 draft Northwest Ports Clean Air Strategy Since then: Seven Port Commission Briefings 60+ Meetings with Industry, Community, Labor, Environmental, Agency Stakeholders Expanded Process November 2008 Three Evening Meetings with Drivers Small Business Liaison Individual Driver Contacts Seaport Clean Air Program Advisory Group (Regulators, Labor, Environmental, Industry, Community Representatives) 9 ADVISORY GROUP CONTRIBUTION Outcomes: Industry Proposal to Partner With Truck Plan Financial Assistance to Drivers Truck Removal Plan Individual Assistance to Drivers Small Business Liaison 10 Proposed Truck Plan Elements Terminal Operators will Enforce at Gates Trucks that Enter Terminals Must Be 1994 or Newer Starting 01/01/2011 May Exempt Occasional Visitors Port to Fund Removal Program for Older Trucks $1.5 Million In 2009 (Unbudgeted) Continued Support for Cascade Sierra Solutions' Project to Replace Older Trucks W/Newer Retrofitted Tucks Continue Small Business Assistance Program For Owner/Operators 11 How Do We Ensure That This Happens? Negotiate Agreement with Terminal Operators, Trucking Industry, Puget Sound Clean Air Agency, Port Modify Container Terminal Leases to Support Truck Plan Implementation Port Commits Funds for Truck Removal Program Monitor Performance and Adjust as Necessary 12 Outcomes Helps Retain Cargo Volumes & Position Port For Growth - Influence Shipping Line Deployment Decisions Financial Relief & Incentives Truck Plan Certainty Supports Green Gateway Clean Truck Program Additional Environmental Commitments In Terminal Leases Reduces Air Emissions NOW Supports Healthy Communities and Working Conditions Supports Growing Port Reputation in Industry for Collaborative Practical Solutions Reduces 2009 Seaport Net Operating Income 13 Commission Schedule Truck Removal Plan April 2009 Truck Memorandum of Agreement May 2009 Container Terminal Lease Amendments June 2009 14 Crisis = Opportunity Gain competitive advantage Get clean air now 15 Seaport Recovery Strategy R Retain Jobs E Efficient Operations Efficient Cargo Flows C Cost Containment O Opportunities Captured V Volume Retention E Environmental Sustainability R Relationship Investment Y Year by Year Approach 16
Limitations of Translatable Documents
PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.