Minutes
Commissioners Ted Fick Chief Executive Officer Stephanie Bowman Commission Co-President Courtney Gregoire P.O. Box 1209 Commission Co-President Seattle, Washington 98111 Tom Albro www.portseattle.org Bill Bryant 206.787.3000 John Creighton APPROVED MINUTES COMMISSION SPECIAL TOWN HALL MEETING DECEMBER 3, 2014 The Port of Seattle Commission held a special town hall meeting Wednesday, December 3, 2014, at Kent City Hall, 220 Fourth Avenue South, Kent, Washington. Port of Seattle Commissioners Creighton and Albro and Port of Tacoma Commissioner Petrich were present. The meeting commenced at 5 p.m. OPENING REMARKS Commissioners provided an overview of the proposed Seaport Alliance, noting that it is not a port merger, but a proposal to jointly manage certain maritime assets of the ports of Tacoma and Seattle jointly. The assets to be excluded from the alliance by each port were listed. The Port of Tacoma's industrial real estate and the Port of Seattle's upland real estate, cruise,fishing, and aviation lines of business will not become part of the Seaport Alliance. Presentation slides were used to introduce the primary driving forces behind forming an alliance. Together, the ports of Tacoma and Seattle represent the third largest gateway for maritime trade in the U.S. Competitors include ports in British Columbia, California, and the U.S. Southeast, as the destination for inbound discretionary cargo is the U.S. Midwest. The current loss of shipping market share for both ports, the prospect of efficiencies and improved customer service, and potential increased influence with the Legislature and railroads were noted as reasons supporting formation of the alliance. Properly deployed investment made possible in an alliance could foster redevelopment to receive larger vessels and keep and grow cargo activity in the Puget Sound, along with the jobs that activity represents. It was noted that port activity represents a third of the Washington economy. Washington was described as the most exportdependent state in the U.S. PUBLIC DISCUSSION Allan Barrie, Global Transportation Services Inc., commented on the need to prioritize movement of freight in Washington and the role of the state legislature to provide for more interagency cooperation such as a seaport alliance. Cooperation will be needed between all parties, agencies and labor included, to be successful. Vladimir Pshonyak commented on the view of drivers of the two ports as a single gateway. He noted the harsh working conditions for drivers and expressed his hope that the Seaport Alliance might enable combination and increased benefits of the truck scrapping program related to the Digital recordings of the meeting proceedings and meeting materials are available online www.portseattle.org. PORT COMMISSION EVENING TOWN HALL MEETING MINUTES Page 2 of 2 WEDNESDAY, DECEMBER 3, 2014 Northwest Ports Clean Air Strategy. The program offers incentives for drivers of older model trucks to turn them in and upgrade to more modern, cleaner models. Mic Dinsmore, former Port of Seattle CEO, commented on the monumental nature of the decision for the two ports to cooperate. Mr. Dinsmore asked about the division of carriers between the alliance ports and investment of tax revenue between the ports. Commissioners noted that the details for how to operate the alliance, including a strategic plan, are still in the process of being worked out. The complementary virtues of the Port of Seattle's bond capacity and the Port of Tacoma's available land were noted. However,it was stressed that the Seaport Alliance is not a merger of the two ports, each of which has its own fiduciary responsibilities to its distinct constituents. Eric Dayment, Bellevue, expressed his skepticism on the success of a Seaport Alliance. He stressed the importance of working together across a broad spectrum of stakeholders. Commissioners noted the support of numerous government officials to the two port commissions. Support has also been expressed by the Pacific Maritime Shipping Association (PMSA). It was observed that outreach to the railroads is essential and that joint customer calls to Asia are already scheduled. Legislative support to complete SR-167 and SR-509 were emphasized as part of the infrastructure support necessary for Alliance success. The Canadian approach of alignment with different levels and branches of government to develop freight mobility infrastructure was contrasted with the slower reaction of U.S. and Washington state agencies. John Cvitkovic, ILWU Local 52, urged the ports to make the most of the workforce available in Puget Sound. He spoke in support of 24-hour-per-day terminal operations. Alexandr Yuranayov, industrial real estate broker, commented on how the ports manage real estate. It was noted that changes in how the Port of Seattle might change under the leadership of a new CEO. Gordon Maclean, Marine Exchange of Puget Sound,commented on the need to publicize globally that the current capacity and truck availability of the two ports. Mr. Maclean spoke supportively of 24-hour terminal operations. The proposition that other Washington ports might be considered for inclusion in the Alliance in the future was discussed. It was recommended that further town hall meetings be held later in the evening to promote inclusion of more stakeholders. ADJOURNMENT The town hall discussion concluded at 7 p.m. Tom Albro Secretary Minutes approved: July 14, 2015. Minutes of the evening town hall meeting of December 3, 2014, proposed for approval on July 14, 2015.
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