Michael R. Christensen, P.E. Deputy Executive Director October 23, 2009

1. AASHTOSpecial Committee on Intermodal Transportation and Economic Expansion: Freight Industry Perspectives and Priorities Michael R. Christensen, P.E. Deputy Executive Director October 23, 2009

2. Ports of Los Angeles & Long Beach Historical Background (Landfill/Overlay) “One of the largest man-made seaports in the world” Comparison of 1872 to 2008 San Pedro Bay Shoreline

3. Port of Los Angeles Main Channel, Circa 1890

5. Current Status: Ports of Los Angeles & Long Beach • Top U.S. Trade Gateway – 5th in the World • 43% of nation’s imports; 27% of exports • $287 billion/year in trade • 1 million jobs in California • $30 billion in local, state, and federal tax revenue • Part of a Southern California regional trade corridor that includes the Alameda Corridor and all of the regional transportation agencies stretching to the Nevada border 5

6. POLA/POLB Container Cargo Forecast - 2007 vs. 2009 Long-Term Port Complex Capacity =43.2M TEUs 6

7. TRAPAC - +60 acres Yang Ming - +30 acres China Shipping - +30 acres Evergreen - +55 acres PASHA Channel Deepening Berths 206-209 YTI - +80 acres APL - +40 acres Plains All American (Pacific Energy) POLA Projects – We are doing our part Nationwide ports invest $2B/year in “inside-the-gate” infrastructure 7

8. Congestion Free Port Access Pays Dividends Ports with good road, rail, and marine access are key to economic recovery and competitiveness • Freight delays are expensive • Seaports need good road, rail & marine access to keep product costs down and aid exports • Enhancing the ability to move goods efficiently helps America be more globally competitive • Infrastructure commitments by ports are NOT being matched at federal level

9. If we don’t invest in our national goods movement infrastructure, others will…and take our jobs and tax revenue with them!

10. Federal Funding & Policy Recommendations • Funding methods may include: • Tolls • Portion of Customs duties • Infrastructure bank • Gas/diesel tax increase • Public/private partnerships • Freight fee • Federal funding and support needed for: • Intermodal freight corridors of regional & national significance • Freight rail development tax credits & grants • Incentives for marine highways use & infrastructure development • Freight fee caveats include: • Any freight mobility trust fund should be fully spent on freight mobility • Must be levied against all cargo types (not just containerized goods) and at all international gateways (land and sea) • Return to source: Funds collected at ports should be spent only on port projects, or on corridor projects with a direct nexus to the collection gateway • Like with TIGER, ports should be eligible direct applicants

11. Seaports are Good Partners • Enhanced federal partnership is needed in road, rail, marine transportation networks to ensure port investments work • We need to continue to work with federal leadersto help them understand the value and importance of our nation’s seaports to economic recovery and long-term prosperity • Successful seaports depend on adequate federal transportation infrastructure investments to allow goods to move efficiently

12. Questions