ITEM NO: _7a Supp
DATE OF
MEETING: March 31, 2009




CUSTOMER RECOVERY STRATEGY
AND CLEAN AIR PROGRAM
Gain Competitive Advantage
Get Clean Air Now

Customer Support Package
Why?
Crisis Continues To Deepen
Anchored Container Ships Approaching 12% Of World Fleet
Transpacific Trade Down 25% YTD
Seattle Container Volumes Down 37% In February
No Market Turnaround Expected Near Term
Supply Chain Pressure For Cost Reductions
Consumers  Shippers  Carriers  Terminals  Ports
Other Ports Taking Action
Direct Customer Requests For Support
Keep Current Cargo/Position To Expand
Container Lease Revenues Provide 81% of Net Operating Income (NOI)
Container Business is a Major Driver for Jobs
Opportunity To Solidify New Business
2

What a difference TEUs make
TEUs    1 million  2 million  3 million
Jobs     9,588    18,982   28,377
Payroll    $789.6M   $1,560M   $2,331M
State/Local $71.9M    $142M    $212M
Taxes
Source: John Martin and Associates POS Container Model

3

Customer Support Package
What We Give:
One Year Program Support
Equal Approach to all Marine Terminal Operators (MTOs)
Combined Direct and Deferred Cost Reductions
Key Elements:
Crane Rent          Intermodal Yard Fees
Payment Terms       Tenant Specific Items
Dollar Impact:
Direct Costs = $2.5m Reduction in NOI (June 2009 
June 2010)
Deferred Costs = $4.6m (Money back to Port)
Proportional to Los Angeles/Long Beach Program
4

Customer Support Package
What We Get:
Competitive Positioning
Green Language in All Terminal Leases
Truck Program Commitment in All Terminal
Leases
Tenant Specific Lease Concessions

5

Proposed Environmental Commitments
In Terminal Leases
Northwest Ports Clean Air Strategy  Cargo
Handling Equipment, Trucks, Assist W/Vessels
Stormwater
Anti-idling
Energy Conservation
Spill Response
Recycling
Annual Review Process
6

Why Now For A Truck Plan?
2010 Standard Set in Northwest Ports Clean Air
Strategy
Industry and Drivers Need Time to Make Changes
to Meet That Standard
Truck Program Commitment in Leases
Air Gets Cleaner Now for Workers & Community
Residents
Outcome of Two-year Process Seeking Input From
Stakeholders
7

Legal Landscape  Concession
Model
Status and Prognosis of Legal
Challenges to LA Plan
Lack of Legal Authority Here

8

Clean Air Program Planning Process
Process began spring 2007  draft Northwest Ports Clean Air
Strategy
Since then:
Seven Port Commission Briefings
60+ Meetings with Industry, Community, Labor, Environmental,
Agency Stakeholders
Expanded Process November 2008
Three Evening Meetings with Drivers
Small Business Liaison  Individual Driver Contacts
Seaport Clean Air Program Advisory Group (Regulators,
Labor, Environmental, Industry, Community Representatives)

9

ADVISORY GROUP
CONTRIBUTION
Outcomes:
Industry Proposal to Partner With Truck Plan
Financial Assistance to Drivers  Truck
Removal Plan
Individual Assistance to Drivers  Small
Business Liaison

10

Proposed Truck Plan Elements
Terminal Operators will Enforce at Gates 
Trucks that Enter Terminals Must Be 1994 or
Newer Starting 01/01/2011
May Exempt Occasional Visitors
Port to Fund Removal Program for Older Trucks
$1.5 Million In 2009 (Unbudgeted)
Continued Support for Cascade Sierra Solutions'
Project to Replace Older Trucks W/Newer
Retrofitted Tucks
Continue Small Business Assistance Program
For Owner/Operators
11

How Do We Ensure That This
Happens?
Negotiate Agreement with Terminal Operators, Trucking
Industry, Puget Sound Clean Air Agency, Port
Modify Container Terminal Leases to Support Truck Plan
Implementation
Port Commits Funds for Truck Removal Program
Monitor Performance and Adjust as Necessary

12

Outcomes
Helps Retain Cargo Volumes & Position Port For Growth
- Influence Shipping Line Deployment Decisions
Financial Relief & Incentives
Truck Plan Certainty
Supports Green Gateway
Clean Truck Program
Additional Environmental Commitments In Terminal Leases
Reduces Air Emissions NOW
Supports Healthy Communities and Working Conditions
Supports Growing Port Reputation in Industry for
Collaborative Practical Solutions
Reduces 2009 Seaport Net Operating Income
13

Commission Schedule
Truck Removal Plan  April 2009
Truck Memorandum of Agreement
May 2009
Container Terminal Lease Amendments
June 2009

14

Crisis = Opportunity
Gain competitive advantage
Get clean air now

15

Seaport Recovery Strategy
R  Retain Jobs
E  Efficient Operations  Efficient Cargo Flows
C  Cost Containment
O  Opportunities Captured
V  Volume Retention
E  Environmental Sustainability
R  Relationship Investment
Y  Year by Year Approach
16