Northwest Transportation Briefing

PNW container ports no longer have a competitive advantage The Canadians are eating our lunch We need your help

Competitive Threats

Midwest Battleground

West Coast Ports TEU Volumes 2009 Seattle 1,584,000 Tacoma 1,545,000 Portland 174,000 Oakland2,051,000 Los Angeles6,748,000 Long Beach5,067,000 Port of Metro Vancouver 2,152,000 Port of Prince Rupert 265,000

Canada’s Gateway & Corridor Initiative Targets U.S. Midwest Cities 58 hours closer to Asia No Harbor Maintenance Tax

Competitive Threats Widening of Panama Canal makes all-water route viable again

Over 26M TEU New Capacity Planned at East Coast/Gulf Ports Houston: Bayport Terminal $1.4 billion project. 2.3 M TEU. Jacksonville: 2 new container terminals. 2 Million TEU. Dredging to 45’’ Savannah: Expand capacity to 6.5 Million TEU. 48’ channel deepening project. Charleston: Proposed new 1.3M TEU terminal. 45’ deep. Norfolk: current projects to expand to 3M TEU. All 56’ depth. New York: 52’ depth by Expanded rail capacity to 1 million on/near dock.

Global Trading Partners

Pacific Northwest Mainline Rail

West Vancouver Freight Access Rail Project PROJECT PARTNERS:

Deep Draft Lower Columbia River 105-mile deep draft channel 40 million tons worth $17 billion Jobs: 40,000 direct; 100,000 indirect 3 grain ports; 4th to come early M tons grain and growing 3M tons forest products Third largest grain export gateway in the world

14’ channel 360 miles – Portland/Vancouver to Lewiston 8 locks 10-12M tons $3B in value Keeps 700,000 trucks off highways that run through Columbia River Gorge Inland Columbia/Snake River Channel

Critical to survival of local communities International trade, recreational boating, commercial fishing $94.3M recreational sales, 1500 jobs in OR Four top 40 US Commercial Fish Landings in OR & WA $100M estimated annual value of Commercial Fish Landings in OR Infrastructure funding vital to maintaining coastal economies OR & WA Shallow Draft/”Low Use” Ports

2010 Fast Facts Miles of Track1,073 Annual Payroll$123.4 M In-State Purchases$84.9 M Capital Spending$89.6 M Employees1,581 Union Pacific in Oregon

2010 Fast Facts Miles of Track532 Annual Payroll$23.2 M In-State Purchases$95.9 M Capital Spending$18.8 M Employees319 Union Pacific in Washington

BNSF Rail Network BNSF Network

What is Unique About Rail And Why Public Policy Matters Anti-Trust Re-regulation Carbon Legislation Tax Public/Private Partnerships Safety Railroads

Port of Vancouver Train Blocking Mainline

West Vancouver Freight Access Rail Project PROJECT PARTNERS:

Serves major urban areas in NW from Willamette Valley to Vancouver, BC 7 th highest ridership among passenger rail corridors nationwide Partnership between WSDOT, ODOT and Amtrak Federal support will help increase frequency, improve travel times and reliability Amtrak Cascades Service

Highway Trust Fund supported almost entirely by gas and diesel taxes Trust Fund expected to exhaust balances in 2013 (or maybe even 2012) Without additional resources, Congress will have to cut highway funding about 30%, transit funding 40%+ In long-term, need to re-think over-reliance on gas tax Federal Highway Trust Fund

Highway Trust Fund Finances

One of the worst chokepoints in the nation Innovative, multi-modal solution Federal support through program for projects of national significance is critical Columbia River Crossing

Four largest airports: –Sea-Tac –Portland –Spokane –Boise Many other commercial service airports Even more general aviation airports Airports in the Pacific Northwest

Passenger service –Domestic/International Cargo service –Domestic/International General aviation business/recreation On-airport commercial activities Job generators Value of Airports

Funding –Tax treatment of airport bonds –Airport Improvement Program (FAA grants) –Passenger Facility Charges (PFCs) Security/Facilitation –Transportation Security Administration –Customs and Border Protection Airport Federal Priorities

Environmental –Sustainable Aviation Fuels Northwest Safety –Firefighting and rescue standards Air Service –Essential Air Service –Small Community Air Service Development Airport Federal Priorities

Navigation Policy WRDA Vehicle for Corps policy changes & new projects Traditionally biennial WRDA 2000 … 2007 … 2011?

Navigation Policy Principles & Guidelines Guides federal water resources planning Published in 1983 WRDA 2007 called for update CEQ currently finishing work on Principles

Navigation Policy Other federal policies impact navigation NEPA Clean Water Act ESA FCRPS Biological Opinion (the “BiOp”)

Navigation Funding Pattern of decline in Corps funding

Navigation Funding Pacific Northwest has mix of federal navigation projects: –Deep draft –Coastal shallow draft/”low use” –Inland Funding climate is difficult for all projects

Coastal Navigation Funding Harbor Maintenance Trust Fund (HMTF) Authorized in WRDA 1986 Designed to pay 100% of coastal O&M Ad valorem tax on imports “Surplus” of over $5B Bills to address the surplus

Inland Navigation Funding Inland Waterways Trust Fund (IWTF) Also authorized in WRDA 1986 Designed to pay 50% of inland construction and major rehab Diesel tax paid by barging industry Receipts not keeping pace with project costs IMTS Capital Investment Plan proposed

Questions?