Pacific Maritime Association

Reversing the Trend is Vital to Local Economies While the market share losses are significant, the West Coast is still projected to see volume increases in coming years and decades. It is vital for the West Coast to position itself to welcome this additional business, handle future volumes, and compete effectively for discretionary cargo originating in Asia. The health of regional and state economies will depend on the ability of West Coast ports to stem this market share erosion. Using the most recent full-year data, Dr. Martin estimates that in 2021, discretionary cargo handled at the Ports of Los Angeles and Long Beach supported 56,022 jobs, $19.3 billion of direct business revenue to local service providers, and $942.9 million of state and local taxes that support vital public services. More broadly, marine cargo and vessel activity at the Ports of Los Angeles and Long Beach are a significant jobs generator throughout California. Southern California ports directly generate 95,957 jobs in the Golden State, including truckers, warehouse and distribution center employees, and railroad workers. Expanding Capacity Through Modernization and Automation A fundamental strategy for the San Pedro Bay ports, in particular, is the expansion of terminal capacity to efficiently address future volumes, according to Dr. Martin. This is best achieved through densification and modernization. "Without densification through automation, these ports' market share losses could grow even more," Dr. Martin has said. This conclusion aligns with another study commissioned by PMA that underscores the importance of automation. Dr. Michael Nacht, a professor of public policy at UC Berkeley and former Assistant U.S. Secretary of Defense, found that terminal automation in Southern California helped relieve the severe pandemic-era supply chain congestion, while generating work for longshoremen faster than conventional terminals and providing measurable environmental benefits. "Automation is offering early proof of a win-win strategy: work gains for ILWU members and productivity and efficiency gains that will drive up growth, drive down cargo-handling costs, and help restore the San Pedro Bay ports' competitive advantage," Dr. Nacht wrote. Ultimately, expanding terminal capacity and reducing dwell times is vital to maintain competitiveness and boost confidence among shippers, Dr. Martin found. "The competitive landscape is real, so constant investment in terminal efficiencies at West Coast ports is necessary in light of the limited availability of land for terminal footprint expansion," he said. Direct Jobs Generated in California by Cargo and Vessel Activity at the San Pedro Bay Port Complex, 2021 *Includes Steamship Agents, Chandlers, Surveyors, Marine Construction Source: John C. Martin Associates, LLC JOB CATEGORY ALL PORT FACILITIES Rail Industry 3,659 Trucking Industry 38,313 Terminal Operations 7,510 ILWU 9,527 Pilots/Tugs 236 Maritime Services 5,108 Freight Forwarders 5,324 Distribution Center/Warehouse/Transload 24,472 Government/Insurance/Banking/Legal 1,808 TOTAL 95,957 It is difficult to win back lost market share of discretionary cargo. – John Martin, PhD An aerial view of the San Pedro Bay Port Complex. 15 15 PACIFIC MARITIME ASSOCIATION

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