Port Competitive Advantages

On West Coast Nearest Asia Los AngelesLong Beach

8,000-Container Post-Panamax Ships Deep Water Ports Can Serve Ships Drawing Over 50 feet of Water

Great Infrastructure

Issue: Balancing Health & Jobs

Operations Bring Rising Asthma & Cancer Risk From Airborne Toxics Source: SCAQMD, Multiple Air Toxics Exposure Study II, March 2000 Cancers per million

Clean Truck Fees & Program Other Measures Underway

Ports Drive Badly Needed Blue Collar Logistics Job Creation

But Containerized Imports Down Dramatically -30.1%

Logistics Joined Blue Collar Job Losses

Gold Mine Theory Primary Tier Secondary Tier -$10.6 Billion

Soaring Numbers of Unemployed 528,022 Avg. Jan-2000 to Jun ,273,700 July Multiple: Increase Source: CA Employment Development Department Number of Unemployed, Southern California Avg. Jan-2000 to Jun-2007 v. July 2009 Poverty Is Also A Health Issue

Slowdown Why The Port Slowdown ?

U.S. Economy Has Shrunk -7,205,000 Jobs

Many BCOs But Also, Ports Increasingly Regarded As Unreliable By Many BCOs UP Buys SP, Trains Can’t Move ILWU-PMSA Lockout/Strike 93 Ships Can’t Be Unloaded: Not Enough Labor Rains Wash-Out Rail Track Clean Truck & Infrastructure Fees Employee Truck Mandate & Lawsuits Riverside Suing Ports LA-Oak Congressional Work on Employee Driver

The Diversion Fear : 4-Corners Strategy Panama & Suez Loss of 4% Market Share

Substantially Delayed Cargo Forecast & Economic Impact Will Likely Be Substantially Delayed e e TEU=20 foot equivalent container units Source: Ports of Los Angeles & Long Beach; forecast: Moffatt & Nichol Engineers Port Container Traffic Ports of Los Angeles & Long Beach, & Long Term (million TEUs) Loss of 4% Market Share

Industrial Real Estate Absorption Has Stopped

Infrastructure Long Term Issue: Infrastructure

Worst in nation since 1982 Trucks & Traffic Congestion Slows Movement of Goods, Lowers Competitiveness, Adds To Air Quality Difficulties

Lack of Rail Grade Separations Dividing Cities

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Invested Leaders Have Invested In Infrastructure Inter-State Freeway System President Eisenhower State Water Project Governor Pat Brown We Need To Do It Again!