Item No.:                  7d_Supp
Meeting Date:            June 9, 2015

2016 Maritime Business Plan
June 9, 2015

1

Industry/Business Context
Cruise industry continues to grow with vessels
upsizing and increased focus on Asia
Alaskan cruising market remains strong with interest
in homeporting larger ships
Seattle market is mature - moderate growth expected
with passenger counts of 900K
The number of pre/post cruise passenger visits is
steadily increasing in the region
Industrial properties market remains consistent and
steady driving higher occupancy at port properties
Cruise Business is mature, growing moderately and larger vessels expected 
2

Industry/Business Context
Bering Sea and Gulf of Alaska fisheries are the most
sustainable fisheries in the world
Alaska commercial fishing industry remains strong
Alaska commercial fleet continues to homeport at
Fisherman's Terminal & factory trawler fleet at T-91 
Commercial fishing industry is revitalizing their fleet;
building new boats to replace aging ones
Recreational Boating customers are demanding higher
standards at marinas driving modernization
Grain outlook is strong for soy exports to China
Legacy fishing fleets continue to homeport & revitalization of fleet has begun 
3

Maritime: Mission, Vision & Alignment
Century
Agenda
CEO Goals & Initiatives

Maritime Division Mission

Vision A vibrant working waterfront generating economic vitality for the region
4

Century Agenda Alignment
Strategy: Position the Puget Sound as a premier international logistics hub





IMPACT: Incremental growth 2010-2012 
Added 1,600 Jobs and
$1.5 Billion in business income growth
Century Agenda Goal Double the economic value of the fishing and maritime cluster
5

Century Agenda Alignment
Strategy: Advance the region as a leading tourism destination & business gateway
Total Seattle Passengers 1999-2015 
1,000,000
800,000
600,000
400,000
200,000
0
1999 2002 2005 2008 2011 2014



IMPACT: Over 3,600 Jobs due to the cruise industry in 2014
Century Agenda Goal Double the economic value of cruise traffic to Washington State
6

Century Agenda Alignment
Strategy: Be the greenest, most energy efficient port in North America

Terminal 117

before remediation

after remediation


IMPACT: Nearly 12 acres of habitat will be restored toward our 40 acre goal
Century Agenda Goal Restore, create & enhance 40 acres of habitat in
the Green/Duwamish Watershed and Elliott Bay         7

Maritime Division Overview
Business Groups          Key Maritime Properties 
Cruise & Maritime Ops        Cruise Facilities
Commercial Moorage         T-86 Grain Terminal
Recreational Boating         T-91 Gen'l Purpose Terminal 
Industrial Properties         Fishermen's Terminal
Service Groups             Maritime Industrial Center
Marine Maintenance         Shilshole Bay Marina
Environmental Svs           Bell Harbor & Harbor Island
Finance & Budget             Marinas
Maritime Security &          Industrial Properties
Emergency Prep         Public Access Sites
Mission Enrich our maritime legacy by leveraging our properties to create waterfront
opportunities & grow maritime jobs in a financially & environmentally sustainable way
8

Maritime Division: Portfolio of Properties




Diverse maritime properties & activities have served the community for over 100 yrs
9

Maritime Division: Cruise Terminals




Diverse maritime properties & activities have served the community for over 100 yrs
10

Maritime Division: Commercial Moorage Facilities




Diverse maritime properties & activities have served the community for over 100 yrs
11

Maritime Division: Industrial & Commercial




Diverse maritime properties & activities have served the community for over 100 yrs
12

Maritime Division: Recreational Boat Marinas




Diverse maritime properties & activities have served the community for over 100 yrs
13

Maritime: Public Access/Environmental Sites




Diverse maritime properties & activities have served the community for over 100 yrs
14

Maritime: Dramatic Growth Initiative
Modernize Piers 66 & 90 for larger cruise vessels
Develop Fisherman's Terminal Strategic Plan/obtain approval 
Fund/construct Shilshole Bay Marina bathroom facilities
Develop waterfront habitat restoration into a line of business
Develop business that optimizes utilization of port properties



Leverage maritime properties to grow net income and economic benefit
15

Modernize Our Cruise Facilities
Be Big Ship Ready
Trending Bigger
Pier 90
Calling Seattle
Now

Early 2000's 



Pier 66
Modernize our cruise facilities for the future and the upsizing of cruise vessels
16

Fishermen's Terminal Strategic Plan 



IMPACT: Preserving moorage for commercial fishing boats,
has kept occupancy in the 74-84% range in recent years.
Continue our legacy as homeport to the North Pacific Fishing Fleet for over 100 years
17

Modernize Shilshole Bay Marina Facilities
Industry Standard
Vintage 1960's Standard                Today's Standard 





Current SBM Facilities               Port of Everett

Upgrade our recreational boating facilities to retain customers & foster growth
18

Maritime: High Performance Organization
Operational              Talent               Valued
Excellence            Development          Communication

Deliver safe, compliant    Develop staff capabilities,   Provide information that
operations and maintain     bench strength and      is clear, concise and
port assets            opportunities            relevant



Advancing workforce development and small business enterprise goals is a key priority
Deliver operational excellence and develop our employees       19

Maritime: Policy Challenges
Reinvestment in facilities for the future 
(Modernize for bigger ships and modernize marinas)
Partnership with city/county on supporting maritime 
(industrial land use, permit conditions, transportation)
Increase competitiveness of Puget Sound gateway
(cost efficient and attractive to customers)
Support diversified maritime revenue growth
(adapting to new markets and lines of business)
Adapt and respond to regulatory environment
(changes more frequent/restrictive than competitors)
20

Stormwater Utility

21

Stormwater Utility: Transition to Port Operated Utility
Stormwater Management Fees Paid to City: 1997 - 2018 
$6.00
$5.40 
$4.91 
$5.00
$4.47 
Tenants    Port of Seattle
$4.06 
$4.00                                                                         $3.69 
$3.36 
$3.05 
In Millions  $3.00                                                                         $2.71 
$2.26 $2.31 
$2.04 
$2.00
$1.40 
$1.30 
$1.05 
$1.00                                $0.83 
$0.69 $0.69 $0.73 
$0.51 $0.51 
$0.40 $0.42 

$-
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Next 5 years: $85-135 M investment in stormwater by Port/tenants; $23M in fees
22