1. Port of Tacoma SWOT Analysis Final Report
Presented by
Starboard Alliance Company LLC and Mercator International LLC
February 10, 2011

2. Outline Background Project scope Goals Methodology Sample size
Representation
SWOT Findings by Line of Business
Container
Intermodal
Automotive
Breakbulk
Real Estate
Questions & Answers

3. Container Line of Business
Strengths:
Very strong community support
Room for facility/capacity expansion
Effective marine terminals, with smooth operations
Excellent access to interstate highways and harbor drayage transit times
For domestic carriers, close proximity to major shippers and forwarders/consolidators
Weaknesses:
Limited first vessel calls and carrier choices
Small local market
Limited intermodal service to South Central and Southeast states
Harbor Maintenance Tax assessment adds cost

4. Container Line of Business
Opportunities:
Intensify marketing to beneficial cargo owners (BCO)
Attract more carriers to call at Tacoma
Create incentive programs
Develop more competitive distribution center (DC) and/or transload facilities
Threats:
Loss of IPI cargoes to Midwest/Ohio Valley due to:
Cost differentials
Expansion of Panama Canal, coupled with higher oil prices
Abundant capacity on West Coast
Lack of improvement in transit times and costs

5. Intermodal Line of Business
Strengths:
Sufficient rail line capacity to handle projected growth for the next 10+ years
Domestic rail service is a plus
Port-managed daily planning process viewed as effective
Weaknesses:
Relatively small port intermodal terminals
Occasional congestion in the local rail network
Difficult to optimize train service frequency and transit times to points east of Chicago due to main line track configurations
Train service and rates from PNW to Memphis a concern
Secondary market for domestic intermodal from Midwest/Northeast

6. Intermodal Line of Business
Opportunities:
In collaboration with railroads……….
consolidate IPI freight from the Port’s different marine terminals to build larger, more frequent trains
build stack-car traffic “blocks” to destinations east of Chicago to increase the number of “steel-wheel” interchanges in Chicago
Work with intermodal marketing companies (IMC) to increase volume of domestic/marine containers from Midwest to Puget Sound
Threats:
Loss of IPI cargoes to Midwest/Ohio Valley due to:
Cost differentials
Expansion of Panama Canal, coupled with higher oil prices
Abundant capacity on West Coast
Lack of improvement in transit times and costs

7. Automotive Line of Business
Strengths:
Experienced, competent auto processing
Sufficient available land for vehicle storage
Good intermodal connectivity to/from the Midwest
High stevedoring productivity
Excellent water depth
Low wharfage costs
Dual access for railroads
Good landside connectivity with Western Canadian markets
Weaknesses:
Rail connections to the Southeast and South Central states a concern
Long distances from the vessel to the first point of rest
Sub-optimal satellite locations
Lack of dedicated area for marshalling non-automotive RO-RO cargoes such as machinery

8. Automotive Line of Business
Opportunities:
Expand marketing efforts to bring other auto manufacturers and non-automotive RO-RO cargo (BCO’s) to Tacoma
Work closely with stakeholders to maximize Tacoma’s share of projected growth in vehicle movements between Asia and U.S. Midwest
Improve layout/capacity of the automotive terminal to gain 10 to 40 acres for storage/processing
Establish a dedicated on-dock area for non-automotive RO-RO cargo marshalling/processing
Threats:
Loss of business if Tacoma does not:
Address current congestion in the local rail network before 2007 volume levels return,
Improve layout efficiency and capacity of the automotive terminal, and/or
Make the total cost per unit more competitive

9. Breakbulk Line of Business
Strengths:
Short sailing time to/from Asia
Good rail connectivity to/from the U.S. Midwest
Available space for developing new on-dock warehouses
Weaknesses:
Lack of a dedicated marine terminal with heavy lift capabilities
Lack of modern on-dock warehouses with extensive capacities for handling dry and reefer breakbulk cargoes
Limited on-dock acreage at T-7 for cargoes requiring extensive lay-down space
Limited marketing focus on project cargoes, U.S. government-controlled foreign-aid cargo, and breakbulk reefer cargo 
High total cargo handling charges
Rail service/costs for cargoes originating or terminating in multiple Midwest states a concern

10. Breakbulk Line of Business
Opportunities:
Adjust the Port’s cost structure to enhance its competitiveness
Develop a marketing program to capture more export project cargoes and foreign-aid cargoes
Pursue other breakbulk carriers
Capitalize on solid growth prospects for project cargo, especially exports
Threats:
Loss of existing business without improvements in infrastructure and costs

11. Real Estate Line of Business
Strengths:
Abundant Port-owned developable land available for logistics/distribution facilities
Plenty of additional developable land within 20 miles of the Port
Business oriented and good reputation
Good intermodal rail connectivity and service for distribution centers and transload facilities
Weaknesses:
Relative lack of 1 million+ square-foot buildings or land parcels available in or near the Port
Small local market size and limited train service/frequency to Midwest and Eastern markets constrains demand for large-scale distribution facilities
Existing warehouse facilities within the Port lack sufficient truck parking for large-scale DCs
Restrictions on developers under certain leases

12. Real Estate Line of Business
Opportunities:
Partner with real estate developers to build new buildings of the right type and size on Port-owned properties
More favorable and flexible lease terms to BCO and logistics customers
Invest in transload facilities outside the Port to increase the local import/export market
Continue to partner with labor to provide a competitive business environment
Threats:
Expansion of East Coast ports could shift cargo away from West Coast ports and make Tacoma a less attractive location for DCs and transload facilities, after the Panama Canal expansion

13. Starboard Alliance and Mercator International
Thank The Port of Tacoma