THE NORTHWEST SEAPORT ALLIANCE ngs @352?

May 2015

The ports of Seattle and Tacoma have formed The Northwest Seaport
Alliance to manage the two ports' marine cargo terminal investments,
operations, planning and marketing to strengthen the Puget Sound
gateway and attract more marine cargo for the region.


What's at Stake
" Combined, the ports of Seattle and Tacoma are the thirdlargest container gateway in
North America. A recent analysis performed by Martin Associates estimates that the
two ports' marine cargo operations supported more than 48,000 jobs, which generated
nearly $4.3 billion in economic activity in 2013.

Competitive Pressures
Industry consolidation, an increase in use of the Panama and Suez canals, constant
and future growth are all
pressure to lower costs and improve efciencies, fuel costs
driving signicant changes in the shipping industry. The ships in use today are more
than double the capacity calling our ports just a few years ago, and many foresee
demand for even larger ships in the near future. The ports of Tacoma and Seattle
currently have limited capacity to handle these larger cargo carriers. We must work
together to better coordinate investments to meet the changing industry needs.

Alliance Benefits
infrastructure
Key benets of the Alliance include the ability to deploy efcient, critical
investments at a regional level, better meet customer needs and demands for
increased exibility, and a focus on meeting Washington exporters' needs, growing
middle-classjobs and our regional economy.

Here's How it Would Work?
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Governance. While the ports will remain separate organizations that retain
@@ ownership of their respective assets, they will form a port development                                           authority (PDA) to manage marine cargo facilities and businesses in Seattle and
Tacoma.

Leadership. The Northwest Seaport Alliance will be governed by the two ports
as equal members, with each port acting through its elected commissioners.
Each commissioner will continue to stand for election by the citizens of their
respective county. The commissioners expect to hireJohn Wolfe, current Port of
Tacoma chief executive officer, as the CEO of the Seaport Alliance following the
Federal Maritime Commission's (FMC) approval of the agreement. Wolfe would
lead both The Northwest Seaport Alliance and Port of Tacoma through a transition
period of up to ve years.

What's Included. Container and support facilities, breakbulk and other
properties are included in the Alliance to maximize success of planning and
investment strategies. Each port will make an equitable investment in the                                           joint operating entity and will share equally in the resulting revenue.
Seattle-Tacoma International Airport; the cruise business; marinas, such as
Fisherman's Terminal; grain terminals; and industrial real estate facilities,
such as Northwest Innovation Works, Puget Sound Energy and Terminal 91
uplands, will remain outside the Alliance.

Competitive Advantages. The Northwest Seaport Alliance allows the ports to
%leverage our position as the third-largest container gateway in North America.                                              Our proximity to Asia, naturally deep harbors, strong rail and highway
connections to the US. Midwest and Ohio Valley, access to the second-largest
concentration of distribution centers on the West Coast and room to grow
poise us as an attractive gateway.

Next Steps for the Northwest Seaport Alliance
After releasing a draft of the nal agreement for public review, the two port
commissions expect to consider submitting the nal agreement package to the
FMC at a Joint public meetingJune S at Auburn City Hall. Citizen and stakeholder
public review of this agreement will be undertaken throughout May, building on
the extensive outreach since last October, when the proposal was announced.
The draft agreement, information about public meetings, how to submit written
comments and other related news will continue to be updated regularly on the
Port of Tacoma and Port of Seattle websites.