PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5c 
Date of Meeting     July 14, 2009 
DATE:    June 25, 2009 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Michael Burke, Senior Manager, Container Leasing and Operations 
SUBJECT:  Execution of Industrial Track Agreements with BNSF and UP for Terminal 18. 

ACTION REQUESTED:
Port staff requests Commission authorization for the Chief Executive Officer to execute
Industrial Track Agreements with BNSF and Union Pacific (UP) railroads to allow railroads to
access Terminal 18 for on-dock rail operations. 
SYNOPSIS:
As part of the Terminal 18 expansion project, the Port developed additional on dock rail capacity
at Terminal 18. The lease with SSA Terminals (SSAT) also required that both railroads have
access to the facility. An Industrial Track Agreement (ITA) is required before the railroads will
use the facility, effectively making such an agreement a lease requirement. An ITA was never
finalized at Terminal 18 because SSAT never intended to use the on dock rail due to the
economics of terminal operation at that time. SSAT now intends to use the on dock capacity for
their new customers, CMA and Maersk, making in now necessary to have an ITA in place.
Attached is a draft of the ITA between the Port, SSAT and BNSF. A similar agreement is
expected to be executed with Union Pacific Railroad at a later date. 
FINACIAL IMPLICATIONS:
Risk Management has determined that the Port can meet the insurance requirements of the
agreement with our existing coverage so there will be no additional cost. The lease with SSAT
obligates the Port to maintain the receiving and departure tracks outside the lease boundary and
the Port is already bearing the cost of this maintenance function.