Pacific Maritime Association

The Role of Automation in the Supply Chain Just as warehouses, retailers and other vital links in the global supply chain have increasingly embraced automation, so too have some marine terminals. Already, more than three dozen ports around the world are home to current or planned automated terminals. This trend is expected to continue. On the West Coast, two automated terminals are in operation. During the cargo surge, these modern terminals have proven to be particularly effective, with greater throughput than conventional counterparts. Meanwhile, the physical footprint of marine terminals on the West Coast cannot expand significantly. In order to accommodate future growth, terminals will increasingly need to densify their operations, and automation is one approach to support that trend. The Future of Automation at West Coast Ports A contractual right since 2008, automation will likely be a key issue in negotiations for a new coastwise contract taking place in 2022. Protecting automation rights is vital to the future of the San Pedro Bay Port Complex and the myriad American jobs and economic activity it supports. The terminal operators' right to automate comes with significant protections for longshore workers. This includes additional jurisdiction for maintenance and repair work, significant training for the jobs of the future, and a guarantee of 40 hours of pay per week. Longshore Workers are Essential The approximately 23,000 longshore workers represented by the ILWU play a crucial role in handling the enormous and sustained wave of containerized cargo volumes. Their work will continue to be essential as West Coast ports adapt to a fast- evolving logistics landscape. In 2021, PMA and the ILWU worked together to provide up-skill and re-skill opportunities to adapt to changing marine terminal operations. In 2022, we broke ground on a new training center in Southern California to expand those efforts. Research suggests that automation can have a neutral to positive impact on the workforce of the future, with near-dock and on-dock jobs created through marine terminal modernization. West Coast ports will remain a powerful jobs creator so long as cargo volumes stay strong. A skilled, safe, and efficient ILWU workforce will be fundamental to that future. Continuing to be in the National Spotlight Intensive worldwide focus on West Coast ports will continue through 2022 as PMA and the ILWU begin negotiations for a new coastwise contract. Maintaining efficient operations throughout the negotiations will be vital to the nation's economic health. So, too, is protecting the framework that will enable our ports to grow and thrive, along with the longshore workers and millions of other workers whose livelihoods depend on them. 2021 | THE YEAR IN REVIEW Comparison of TEU Levels and ILWU Hours at San Pedro Bay Ports Source: Martin Associates Trucks form long lines to exit the Port of Los Angeles. 15 15 PACIFIC MARITIME ASSOCIATION

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