Pacific Maritime Association

2019 brought greater clarity to the long-term challenges and opportunities facing West Coast ports. For the first time in years, volumes of Asian imports dropped on a coastwide basis, while West Coast ports continued losing market share of discretionary cargo. These facts underscore the increasingly competitive environment the ports find themselves in, and the reality that shippers have many alternatives available. Despite the market share losses, West Coast ports continue to be America's leading gateway for international trade and a driving force supporting millions of jobs and businesses in the local, regional and national economies. New investments in terminal modernization and automation continued in 2019 – actions that are enhancing productivity while extending the West Coast ports' lead as the most environmentally sustainable maritime gateways in the world. This past year, we successfully defended the right of PMA member companies to automate terminal operations, while reaching an important new agreement in Southern California to expand training opportunities to prepare longshore workers for the port jobs of the future. The past year also saw a cruise business boom from Seattle to San Diego – a trend that is expected to continue in 2020 and beyond. And through continued partnership with the ILWU, worker safety hit new heights throughout the Coast. As we look to the future, we must be ready to confront the challenge of winning back discretionary cargo that has been lost to competing ports on the East Coast, Gulf Coast and in Canada. We explore a variety of strategies to accomplish this goal in the pages ahead. Regaining lost market share is vital not only to our member companies, but also to their customers, and to the millions of workers and businesses that depend on healthy West Coast ports. Sincerely, James C. McKenna President and CEO TO OUR STAKEHOLDERS 3 PACIFIC MARITIME ASSOCIATION

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