Michael R. Christensen, P.E.Deputy Executive Director

October 23, 2009

AASHTOSpecial Committee on

Intermodal Transportation and Economic Expansion:

Freight Industry Perspectives and Priorities

Comparison of 1872 to 2008San Pedro Bay

Shoreline

“One of the largest man-made seaports in the world”

Ports of Los Angeles & Long Beach Historical Background (Landfill/Overlay)

Port of Los Angeles Main Channel, Circa 1890

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

Current Status: Ports of Los Angeles & Long Beach

5

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Long-Term Port Complex Capacity =43.2M TEUs

POLA/POLB Container Cargo Forecast - 2007 vs. 2009

1.TRAPAC - +60 acres

2.Yang Ming - +30 acres

3.China Shipping - +30 acres

4.Evergreen - +55 acres

5.PASHA

6.Channel Deepening

7.Berths 206-209

8.YTI - +80 acres

9.APL - +40 acres

10.Plains All American (Pacific Energy)

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POLA Projects – We are doing our part

Nationwide ports invest $2B/year in “inside-the-gate” infrastructure

• 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

Congestion Free Port Access Pays Dividends

Ports with good road, rail, and marine access are key to economic recovery and competitiveness

Halifax

Chicago – 100 hrs

Montreal – 115 hrs

Prince Rupert

Prince George

Toronto – 108 hrs

New Orleans

Halifax

Memphis – 117 hrs

Calgary

CN PROVIDES EXTENSIVE MARKET REACH WITH COMPETITIVE TRANSIT TIMES

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

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

Funding methods may include:

• Tolls

• Portion of Customs duties

• Infrastructure bank

• Gas/diesel tax increase

• Public/private partnerships

• Freight fee

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

Federal Funding & Policy Recommendations

•Enhanced federal partnership is needed in road, rail, marine transportation networks to ensure port investments work

•We need to continue to work with federal leaders to 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

Seaports are Good Partners

Questions