Item No. 7a Supp
Date of Meeting July 28, 2009



Terminal 86 Grain Terminal
Commission Briefing
July 28, 2009
T-86 Grain Terminal 7-28-2009

Facility History
Construction began in April 1968
Cargill lease commenced July 8, 1969
Terminal operational November 1970
Original cost of $14 million
Assigned to Louis Dreyfus March 2000

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Facility Overview
- Receiving and Storing
Commodities Handled  Corn, Soybean, Sorghum
Sourced mainly from upper Midwest
Receiving  By rail  BNSF and UP
Rail yard holds 240 loaded railcars, 150 empties
Can offload 2,000 metric tons per hour
Measuring  Scales inbound and outbound
Storing  68 silos, 39 interstices hold 4 m bushels

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Facility Overview
- Shipping
Shipping  From silos, or direct from railcars
Silos  Allow blending of different grades from
different silos to meet exact specifications
Direct Rail Loading  reduces energy used, cost of
handling, and reduces breakage of grain, preserving
quality
Two commodities can be loaded at the same time
Can load a Panamax ship in 72 hours.
Loading must shut down during rain
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Lease Agreement
Currently in 10th
amendment
Base Rent  plus
Volume Percentage
5-year option this
November
Considering lease
amendment
Extend term 10 years
Facility Upgrades

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Economic Impacts
Port Revenues  Are steady and significant  T-86
diversifies our revenue base
Enhances Port's credit ratings
Jobs  Good family wage jobs all year round


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Key Issues
Exercise 5-yr option vs. lease amendment
extending term 10 years
Aging facility components that require
replacement/modernization
Capital investment-partnership between Port
and Lessee
Perform upgrades while maintaining volumes
and revenue to Port

7

Business Outlook
Markets Served  Asia, Middle East, Europe
P-86 - Record volumes in recent years
Current outlook strong through March 2010
PNW location is an advantage
P-86 berth accommodates deep draft vessels
Steady supply of grain and strong demand
bode well for longer term
New Grain terminal to be constructed in
Longview Washington
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Environmental
Louis Dreyfus has initiated and maintained a
consistent environmentally-responsible record of
operation:
Rail  Locomotives on site now using biodiesel
Direct loading from railcars saves energy
Overwater systems  converting from hydraulic to
electric
Dust Suppression  Additional improvements planned
Tenant shares interest with Port for sustainability
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Summary
40 continuous years of good service
Aging components
Opportunities to improve competitiveness
Environmental opportunities
Continued Partnership


10

Next Steps
Negotiations underway
Report back in the Fall
Questions?
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