1. Terminal 3 Head Tie Dolphin Analysis

2. Topics Terminal 3 Revenue Financial Analysis Economic Impact Safety Concerns 2

3. TERMINAL 3 - REVENUE 3

4. T3 Financials 4 Historical financial data is limited. Prior to August of 2013 Terminals 1 & 3 were combined and not tracked separately. 2013 Avg. Revenue = $177,053 per month 2014 Avg. Revenue = $218,505 per month 2015 Avg. Revenue = $137,242 per month Direct expenses are minimal. The majority of expense for T3 is allocated overhead.

5. Financial Analysis Estimated Cost of Head Tie Dolphin = $750,000 Will allow for accommodating larger and longer vessels. Unknown volume / economic impact at this time. Payback – Less than 6 months based on current monthly revenue. (highly volatile) Terminal 3 is currently the Port’s highest revenue generating single asset. Project priority based on preservation of existing revenues and safety concerns. 5

6. Economic Impact Based on the 2014 BST Economic Impact Study, all of the Port’s marine terminals combined produced: – 924 direct local jobs ($30 million) – 1,767 jobs in Clallam County ($43 million) – 2,185 jobs in Washington State ($74 million) Terminal 3 is major component of the terminal complex and likely produces the highest amount of jobs and revenue for any single terminal. 6

7. Safety 7 Terminal 3 is 455 feet long and most ships that utilize the dock are longer which requires them to wrap their bow lines around the front of the boat and back to the dock.

8. Safety Continued Without a forward anchoring point, ships berthed at Terminal 3 are at risk of sliding backwards if the stern lines fail. On November 15 th 2010 this scenario occurred and the log ship berthed at Terminal 3 began sliding backward directly towards an oil tanker berthed at Terminal 1. Adding the head tie dolphin would provide better anchoring security as well as the ability to accommodate vessels up to 1,000 feet in length. 8