Item No. 11c_supp
Meeting Date: March 22, 2022


Cruise 2022 Season Update
Stephanie Jones Stebbins
Managing Director, Maritime Division
Marie Ellingson
Cruise Operations & Business Development Manager

1

12022SEASON1CRUISESEATTLE2022  2SUSTAINABILITY 3SAFE RETURN

2

1
2022 CRUISE
SEASON

3

2022 Cruise Season Preliminary Schedule

296 ship calls

1.26 million
revenue
passengers
(estimated)
4

Forecast $15 Million to Maritime/Port in 2022

NOI Before Depreciation in $000s
20,000
Aggressive fee raises
15,000                                                                                                                                                 Expense control
Supports other
10,000                                                                                                                                                   Maritime Businesses
and Capital programs
5,000

-
2016           2017           2018           2019           2020           2021        2022 Budget    2022 Estimate

(5,000)

(10,000)

(15,000)


5

Regional Economic Benefit

$900 million
annual business revenue
5,500 jobs


Suppliers   Tourism    Vessel
services
6

Direct Impacts by Activity
Projected Direct Impacts by Economic Activity
of Cruise Operations of the Port of Seattle
Revenues      Wages
Activity
(mils 2018 $)    (mils 2018 $)
Passenger Spending                   $226.8        $83.2
On Shore Staff                           $28.4         $14.5
Maritime Services                      $27.8         $14.2
Maintenance                        $24.2         $7.4
Provisioning                             $60.2          $0.7
Fuel                                   $98.3          $1.7
Crew Spending                        $2.1         $0.9
Total                             $467.8      $122.7
7

Economic Equity: Benchmarking other Ports
2020 Research Study: "EQUITABLE ECONOMIC
CRUISE INVESTMENTS AT OTHER PORTs"
Researched what Ports around the world (4 U.S.
and 17 International Ports)  What can we learn?
Cruise-specific programs more common outside
of U.S.
Domestically, multiple maritime programs
similar to the Port's current work;
Notable exception is Icy Strait Point, in Hoonah,
Alaska.
Owned by Huna Totem Corporation, with over 1,550
shareholders whose aboriginal ties are to the Village
of Hoonah in Southeast Alaska.                                                     Image courtesy www.hunatotem.com

8

2022-2023 Priority Economic Equity Initiatives



Expand workforce                      Grow utilization of local              Connectivity and
development for youth              suppliers, service providers         opportunity to Alaska
and adults                          and WMBE                        communities
Local craft and souvenir
vendor opportunities                                       9

2022 Job Fairs                Port and Cruise
Job Fair @ T-91
New partnership to support four job fairs
Full-time, part-time seasonal jobs
Flexibility for high school and college students, and
teachers
Port and Cruise
March 25 & 26: Port and cruise employers host                  Job Fair @ HUB
job fair at Pier 91
March 29: Cruise employers join OEDI South King
County Job Fair
April 2: Port and cruise employers host job fair at HUB            South King
County Job Fair

10

Community Engagement
April 6 webinar
Community
Travel industry stakeholders
Community and tourism meetings
In Q1, 30+ pre-season stakeholder engagement and
outreach events directly connecting to 750 local residents
and businesses
Email and newsroom outreach
Pier to Pier Waterfront Newsletter
Regular blogs and media releases from pre to post season


11

F rom  our Native community of Hoonah
to  th e Yukon River beyond Denali, the
cruise industry drives the economy for
small villages across Alaska.
- Russell Dick, President and CEO, Huna Totem Corporation

T he past two years have been incredibly
d ifficu lt for our local businesses, and we're
e xcite d to welcome visitors back.
- Alexandra Pierce, Tourism Manager of the City and
Borough of Juneau, Alaska

2
SUSTAINABILITY

13

Environmental Regulatory Agencies
International, Federal, and State Regulators
International Maritime Organization         P  ort Influence Mechanisms
United States Coast Guard                        Port Terminal Tariff #5
U.S. Environmental Protection Agency          Berthing Agreements and Leases
Washington Department of Ecology             Cruise at-berth best management
Puget Sound Clean Air Agency                    practices and compliance observers
Transport Canada                                  Cruise Memorandum of Understanding
Alaska Department of Environmental
Conservation
Cruise Industry

14

Maritime Emissions in Seattle Declined Since 2005
Collaboration between NW Ports, regulation,                   Emission Reduction Progress, 2005-2016
cleaner technology and shore power reduced
emissions                                                   27%         83%
seaport-related GHG    seaport-related DPM
(all sources)              (all sources)
Since 2018, shore power has reduced nearly 6,000
Cruise ships account for 18% of Seattle's
tons of CO2                                                seaport-related GHG emissions, 20% DPM
emissions in the airshed
Cruise
Connection rates at T91 by SP-Equipped Ships                                                                         Ships
18%
97%                                              Grain Ships
89%                                                              2%
Other
62%                                                        Maritime Total:
53%                                                             Sources
45%       300,114
tonnes GHG
Marine
2017           2018           2019           2021                                               Cargo Ships
35%

Source: 2016 Puget Sound Maritime Air Emissions Inventory
15

2021-2022 Clean Air Initiatives
NW Ports Clean Air Strategy
Joined Getting to Zero Coalition
Updated GHG reduction goals to net zero
scope 1&2 by 2040, carbon neutral scope
3 by 2050
Complete the Seattle Waterfront Clean
Energy Strategy
$2 million in Washington state funding for
clean electricity shore power at Pier 66           Shore Power Plugs at Terminal 91

16

2021-2022 Clean Water Initiatives
In 2020, exhaust gas cleaning system
(EGCS) wash water discharge from
cruise ships was banned at berth, and
in 2021 paused in Puget Sound
Participate in a Puget Sound EGCS
water quality study
Became first port to join International
Alliance to Combat Ocean Acidification       Shore Power Plugs at Terminal 91
and issued Action Plan
17

2022-2023 Priority Sustainability Initiatives
Leverage business relationships to drive sustainability
Leases
Preferential Use Agreements
Tariff

Getting to Zero
Complete shore power connections
100% shore connection rate by all cruise ships by
2030
Collaborating with PNW Partners

18

23
SAFE
SAFE RETURNRETURN

19

Success Requires Partnership
Port of
Seattle
City/State
Terminal
& Federal
Agencies                           Operators

Partnership
for Success
Tourism
Cruise                           Industry
Lines
Local
Businesses


20

Safe & Successful 2021 Season
Multiple Layers Improved Success



Terminal           Vaccinated:               Clean facilities        Testing
upgrades          Passengers         Masks             Health
Crew                                             Screening

21

2022 Season COVID Measures Checklist
CDC publishes voluntarily program protocols
Cruise lines opt-in to program and define staff and
employee vaccine and testing measures
Canada issues cruising protocols
Cruise terminal operators and Port approve sanitation
plan
Port  Cruise Line Agreements

22

Port Agreements for 2022
Port Agreements define a cruise line's local health protocols
Prevention                  Response
Embarkation and                        Emergency response plans
disembarkation procedures         Medical care agreements
Health Screening                        Transportation providers
Testing                                   Quarantine housing
Social distancing
Training for land-based staff
Cleaning landside spaces
Local public health agencies provide input and review
External review by independent epidemiologist
23

Questions?

24