Message from Charlie Sheldon, Seaport Managing Director

As we begin a new year, I’d like to share some thoughts with you on the challenges the Port of Seattle and the U.S. West Coast ports face in the future.

In November 2007, I attended the World Shipping Summit in Tianjin, China. I made a presentation that addressed the topic “Challenges for U.S. West Coast Ports after the Panama Canal Expansion."

One challenge is competition from Canada, such as Canadian National's gateway over Prince Rupert. Canadian ports will continue to partner with Canadian Class 1 rail carriers to attract U.S. intermodal cargo over their gateways. Canadian ports and rail carriers appear to have support from their government because of the anticipated economic stimulation for those towns along their transcontinental rail routes.

The 2002 longshore lockout at U.S. West Coast ports was pivotal in generating more demand for transpacific all-water services. This expansion in capacity generated significantly higher volumes at U.S. East and Gulf Coast ports, siphoning cargo that historically moved via West Coast ports.

Near-term, limited Panama Canal capacity will restrict continued expansion of all-water services. Ship availability is another limiting factor in service through Panama or Suez canals. As you know, the Panama Canal expansion will be completed around 2014. Further growth in all-water services also may be constrained by draft limitations at East and Gulf coast ports.

Long-term, the Panama Canal’s increased capacity should attract future growth of Asia imports for discharge at U.S. East and Gulf coast ports. At that time, if the cost to discharge at a West Coast port plus inland transportation exceeds the cost of all-water service to the same destination, customers will continue to diversify their options. The price of U.S. intermodal rail service will be a key consideration.

If these costs are competitive with all-water options, customers will likely use a mix of land bridge and all-water services. Competitive pricing will be a challenge for U.S. Class 1 rail carriers if they continue to experience rising fuel, equipment and infrastructure costs over the next several years. Any increasing costs will need to be offset by efficiency improvements such as improved velocity at terminals, increased labor productivity and efficient deployment and management of equipment.

U.S. West Coast ports offer competitive advantages for U.S. destined cargo. Our ports are closer to Asia than East, Gulf and Mexican ports. Our intermodal rail services offer a reliable, stable workforce and less weather-related disruptions than Canadian rail options to the north. U.S. intermodal rail connections are more developed, reliable and secure than Mexican rail options. Cargo security inspections are well established through U.S. ports, while cross-border systems are still not in place and, once in place, may require time consuming and expensive railroad delays.

Seattle will be well positioned as an attractive gateway for transpacific cargo. We have fast and reliable service to / from inland points. We have a proven record of performance in efficiently moving cargo between ship, rail and distribution centers. We are a leading port in initiatives to improve air quality with the goal of meeting or exceeding U.S. environmental standards. We believe our other Puget Sound port partners also will be ready for that demand.

General News

New Port Commissioners
During November elections, King County citizens elected two new Port Commissioners.

Bill Bryant defeated incumbent Alec Fisken. Bryant is a Seattle native who studied trade and diplomacy at Georgetown University School of Foreign Service. He served as director of trade council for two past governors. He works for Bryant Christie, a firm that helps businesses break into international markets. Bryant’s campaign focused on environmental and traffic issues.

Gael Tarleton defeated incumbent Bob Edwards. Tarleton was raised near Gloucester, MA and is a graduate of Georgetown University. She has 25 years of experience in the areas of disaster management, international trade and national security. Tarleton works at the University of Washington in the Office of Global Affairs.

The Port thanks Commissioners Fisken and Edwards for their service, and we wish them success in their respective future endeavors.

Container Marketing & New Business Development Reorganization
Seaport Container Marketing is now Container Marketing & New Business Development. The team is led by Linda Styrk, director. Linda reports to Phil Lutes, Seaport deputy manager director.

Steve Sasala and Stephanie Kang maintain their responsibilities as marketing managers of national accounts. As marketing manager of carrier accounts, Bari Bookout’s responsibilities include marketing to ocean, rail and key truck carriers. Lily Ninburg is marketing manager of regional accounts. LaTonja Brown serves as market research editor.

Steve Queen will continue working with Container Marketing & New Business Development as container operations manager. Steve joins the Container Operators Department, led by Mike Burke.

New Staff
Bari Bookout joined the Seaport Container Marketing team October 22.

Bari graduated from the University of Alabama with a degree in Business Administration & International Marketing. Bari has worked for Smith Kelly, Norton Lily and NOL. In 1998, she transitioned to APL where she focused on outside sales.

In her free time, Bari enjoys alpine climbing and volunteers on the Climbing Committee of the Mountaineers.

Transportation

Alaskan Way Viaduct South End
WSDOT is progressing rapidly with the design for the Alaskan Way Viaduct’s South End interchange and related utility relocations. Once completed, the South End design will provide grade-separated access for drayage trucks to North SIG rail yard. If there is no train, trucks can stay at grade. The design also includes exclusive truck lanes for trucks serving North SIG on Colorado St South. Port staff is working closely with the project team to maximize the benefits of the project and minimize construction impacts. Construction is expected to begin in 2009.

SR-519 Phase 2
WSDOT is preparing for a design-build contract for this important project that will improve ferry and freight traffic between the freeways and the central waterfront. In recent months, Port staff has been reviewing and commenting on the environmental documentation for the project.


Security

Transportation Worker Identification Credential (TWIC) Enrollment
The TWIC enrollment center opened on December 13, 2007, at Eagles Hall. The Hall is located at 6205 Corson Ave South in Seattle.

TSA recommends pre-enrollment on a secure Web site. With pre-enrollment, participants schedule an appointment to complete the enrollment process at the center. Visit TSA’s site for more information and a list of valid documents needed for enrollment. Walk-in enrollers will be subject to a wait.

When your card is complete, it will be forwarded to the enrollment center for pick-up. The Captain of the Port will give a 90-day notice before enforcement begins.


Federal Grant
In August of 2007, WSDOT closed several north-bound lanes of I-5 to replace aging expansion joints and pavement on a stretch of freeway from Spokane Street to the I-90 interchange. Initially expected to last three weeks, the project finished early in just over two weeks. Thanks to the work of WSDOT and SDOT staff, local detour routes in the Duwamish area functioned well, and port-related truck trips were not impacted by the closure.

Customs-Trade Partnership Against Terrorism (C-TPAT) Revalidation
The Port of Seattle completed the C-TPAT revalidation process for Terminal 91. A physical audit of our compliance and security profile was conducted by two officers from the Los Angeles Custom and Border Protection (CBP) Regional Office. The revalidation is effective until 2011.

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• Reduce maritime and port-related air quality impacts on human health, the environment and the economy;
• Reduce contribution to climate change through co-benefits associated with reducing air quality impacts; and
• Help the Georgia Basin-Puget Sound region continue to meet air quality standards and objectives.

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Trade Statistics

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Sporting and Special Events

Seahawks Football at Qwest Field
(800) 981-6465
Stadium Exhibition Center Events
(206) 381-7555

Other Port Events

Check the Port of Seattle Events page for a listing of upcoming events.