Pacific Maritime Association

THE YEAR IN REVIEW Regional Developments: Southern California S outhern California continues to be the coast leader, with the ports of Los Angeles, Long Beach, San Diego and Port Hueneme together moving more than 211 million tons of cargo in 2012. This total was up 1.5 percent from the previous year, and loaded container volume rose by a similar margin ��� 1 percent ��� to a total of 10.85 million TEUs. Intermodal Rail Currently, approximately 64 percent of container imports at the ports of Los Angeles and Long Beach are transported by rail. In anticipation of competition from the expanded Panama Canal, Southern California ports are investing to enhance rail capabilities to accommodate the larger container capacities of post-Panamax container vessels. In March, Maersk Line and BNSF jointly introduced the North America Flagship Service, offering a direct and consistent connection from Asia to major inland trade hubs in the United States via transfer at the Port of Los Angeles. Dry and refrigerated imports shipped through the service are guaranteed a specific delivery time to Chicago, Houston, Dallas/Fort Worth, Memphis or Northern Ohio/ Michigan, as a result of non-stop rail service provided by BNSF. BNSF���s Southern California Intermodal Gateway (SCIG) project at the Port of Los Angeles continued to make headway in 2012. The $500 million facility would occupy 153 acres just four miles from the waterfront, moving intermodal services significantly closer to the port. This would eliminate more than 1.5 million truck trips each year along the I-710 freeway to the current railway facility, which is located 24 miles from the docks. In September 2012, the Los Angeles Harbor Department published a Recirculated Draft Environmental Impact Report (EIR) on the SCIG project, and the final EIR is set for publication in March 2013. ILWU President Robert McEllrath (l.), ILWU Local 13 President JoJo Cortez and PMA President Jim McKenna break ground for the new dispatch hall in Wilmington in July 2012. During the building phase, the SCIG project is expected to create 1,500 construction jobs; once it is fully operational, it would support 22,000 port-related jobs and 450 onsite jobs. If approved, the facilities, vehicles and equipment in operation at the SCIG will be built to the highest environmental and efficiency standards. For example, BNSF has committed to increasing the proportion of the truck fleet at the SCIG running on natural gas to 90 percent during the first 10 years of operations. New Dispatch Hall In July, construction crews broke ground on the new $20 million dispatch hall for ILWU Local 13 members at the ports of Los Angeles and Long Beach, made possible thanks to the joint efforts of both the ILWU and PMA. The planned 32,565 square foot hall will have the capacity to accommodate four times as many people as the current hall. It will be equipped with state-of-the-art dispatching technology. The hall, which is being constructed according to the LEED Gold Standard for sustainability, is expected to open its doors in late 2013. Infrastructure Developments As part of its 30-year lease with the Port of Los Angeles signed in 2009, TraPac received approvals for a slew of infrastructure investments that are scheduled to begin construction in early 2013. These improvements are part of a $365 million expansion and modernization effort for the TraPac terminal in order to boost its long-term productivity using cleaner technology. First, PHL���s relocation to Berth 200 allows TraPac to build a new, fully automated on-dock rail yard parallel to Berths 143-147. This new rail yard will expedite the movement of cargo and remove the traffic burden and diesel emissions from 2,300 daily truck trips from the port. Scheduled 24 2012 ANNUAL REPORT 2012 ANNUAL REPORT

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