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 1,584,000Tacoma 1,545,000Portland 174,000Oakland 2,051,000Los Angeles 6,748,000Long Beach 5,067,000

Port of Metro Vancouver 2,152,000Port 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 2012. 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 2011

• 14-16M 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 Track 1,073

Annual Payroll $123.4 M

In-State Purchases $84.9 M

Capital Spending $89.6 M

Employees 1,581

Union Pacific in Oregon

2010 Fast Facts

Miles of Track 532

Annual Payroll $23.2 M

In-State Purchases $95.9 M

Capital Spending $18.8 M

Employees 319

Union Pacific in Washington

BNSF Rail Network

BNSF Network

What is Unique About RailAnd Why Public Policy Matters

Anti-Trust

Re-re

gula

tion

Carb

on

Legi

slatio

n

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

• 7th 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

-60

-40

-20

0

20

40

60

2009 2010 2011 2012 2013 2014 2015 2016

Bill

ions

of D

olla

rs

Funding Revenue Balance

• 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 FundingPattern 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?