Port of Seattle Strategies Update Commission Briefing February 28, 2006

2 The Steps of Strategy Mission Strategies Objectives Measures & Targets Initiatives Budget Results

3 Our Strategic Planning Approach:

4 Long Range Challenges & Opportunities – Some Examples Competition from other ports and regions Decreasing availability of public funds Difficult financial and market conditions for many port and airport customers New security restrictions and costs to the global transportation system Increasing surface traffic congestion An emerging “new economy” based on information- intensive products and services A growing community interest in “sustainability” to achieve a long-term balance of economic, social and environmental objectives and values Demographic changes in the present and future workforce

5 The Seven Port-wide Strategies: AIRPORT AND SEAPORT VITALITY ECONOMIC OPPORTUNITIES PUBLIC UNDERSTANDING REGIONAL TRANSPORTATION TRANSPORTATION SECURITY ENVIRONMENTAL STEWARDSHIP HIGH PERFORMANCE ORGANIZATION

6 Seaport Vitality Economic Opportunities Airport Vitality Public Understanding Regional Transportation Security Environmental Stewardship High Performance Organization Port of Seattle – 2005 Strategy “Map” Customer: Community: Organization:

7 Today’s Strategy Updates Strategies & Objectives Current initiatives Mission Strategies Objectives Measures & Targets Initiatives Budget Results

8 Strategic Objectives Create an extraordinary “Northwest” customer experience Maximize financial performance Plan and deliver high-density development; optimize airport throughput capacity Develop and maintain supportive community Enhance our high performance workplace Airport Vitality

9 Current Initiatives Reduce projected airline Cost per Enplanement –Increasing non-airline revenues –Examining elements of financing strategy –Evaluating scope and timing of capital program Improve security while improving customer service –Changing role of Transportation Security Administration and airports (e.g., exit staffing) –Evolving approach to air cargo Continue capital investments –Roadway construction and coordination with Sound Transit –Runway / stormwater protection –Strategic asset management / sustainable facility development Enhance community partnerships via land development Increase focus on employee development Improve emergency preparedness Airport Vitality

10 Strategic Objectives Maximize financial performance. Maximize asset utilization and enhance long-term growth capacity. Provide compelling value that attracts and retains customers. Develop new business opportunities to support our core businesses. Seaport Vitality

11 Current Initiatives Accommodating container growth, on and off terminal Planning for beyond 3 million “Terminal Equivalent Units (TEU’s) and beyond Capital improvements to Fishermen’s Terminal and Shilshole Bay Marina Insuring transportation projects such as the Viaduct and SR 519 provide good access to our facilities. Environmental Initiatives such as Air Emission Inventory, Environmental Management program at Fishermen’s Terminal Seaport Vitality

12 Strategic Objectives Develop new business and economic opportunities for the region and the port Redevelop land and build relationships to attract new jobs in the global economy Generate new revenue through new ventures Expand opportunities for diverse local businesses to succeed Economic Opportunities

13 Current Initiatives North Bay comp plan entitlements with City, and city-wide industrial strategy Puget Sound Regional Council’s Prosperity Partnership Enhancing tourism promotion International trade promotion International consultancy Small business program Economic Opportunities

14 Strategic Objectives Enhance Public Understanding and Support of the Port’s Role in the Region Provide clear internal and external communications about the Port’s mission, activities and accomplishments Enhance community engagement by improving public access to decision-making processes and providing opportunities for public interaction Build and maintain constructive working relationships with agencies, tenants and public interest groups Promote sound legislation and regulation Public Understanding

15 Current Initiatives Strategic community outreach Inclusive annual report distribution and annual meeting formats Issue management system development Policy alignment with City and other stakeholders in key port projects Communicating our environmental track record Public Understanding

16 Strategic Objectives Be a catalyst for regional transportation solutions Ensure long-term, effective access for airport & seaport facilities Provide access for future Port developments Promote regional transportation improvements for enhancing global competitiveness Regional Transportation

17 Current Initiatives Airport & Seaport Access: Airport – SR 518 extra lane, SR 509 extension, Sound Transit airport link Seaport - Alaskan Way viaduct/seawall, Spokane St. viaduct, 519 access to T46, Magnolia Bridge replacement Regional Competitiveness: WSDOT studies on rail, aviation, finance and highway tolling Sound Transit phase II Governor’s container ports initiative Regional Transportation

18 Strategic Objectives Be a Leader in Transportation Security Provide for the safety and security of employees, tenants, passengers, and cargo moving through our facilities, through a combination of: –Prevention - risk-based investments and actions –Planning - exercises and cooperative agreements –Response – using suitable resources while maintaining functional integrity, and –Recovery - restoring critical functions to assure business continuity Transportation Security

19 Current Initiatives Federal container security requirements Global container security system developments Maximizing grant income & project delivery Contingency planning for disaster mitigation and recovery Transportation Security

20 Strategic Objectives Exhibit environmental stewardship through our actions Integrate environmental thinking into actions Assure regulatory compliance Minimize resource consumption Enhance air and water quality and natural resources Influence our business partners to be good environmental stewards Environmental Stewardship

21 Current Initiatives Integrating sustainability into strategic asset management Duwamish water and sediment quality Diesel emissions – trucks, ships, busses, trains, ground support & cargo handing equipment Third runway (water runoff, borrow sites, truck hauls) Mayor’s Green Ribbon Commission Environmental Stewardship

22 Strategic Objectives Be a high performance organization Ensure effective people leadership, management, and total compensation Measure, innovate and improve Optimize new technology Achieve safety and health High Performance Organization

23 Current Initiatives Healthcare cost management Labor strategy implementation IT investments & strategy development Employee development & diversity Strategic staffing –Recruiting, selection and retention –Staff and leadership development –Succession preparations High Performance Organization

24 The Steps of Strategy Mission Strategies Objectives Measures & Targets Initiatives Budget Results