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LA Trade Gateway Update September 10, 2015

Gene Seroka, Executive Director

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Carrier Business is Stabilizing

Jan-13

Mar-13

May-13Jul-1

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Sep-13

Nov-13

Jan-14

Mar-14

May-14Jul-1

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Sep-14

Nov-14

Jan-15

Mar-15

May-150

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Port of Los Angeles Berth Productivity

(Box

es/h

our)

Port Productivity Has Rebounded

Methodology: Berth Productivity is calculated for each vessel by dividing the total number of boxes loaded and unloaded during a vessel call by the total number of hours the vessel was at berth.

3= #1 in US Berth Productivity Q1-2 2014 (Journal of Commerce)

Our Changing Role As A Port New “Partnering Port” model & business approach Deeper Collaboration

Example: Expanded FMC agreement allows San Pedro Bay Ports to … Jointly address concerns relative to congestion & supply chain issues Work with supply chain stakeholders to enhance operational efficiencies

& terminal velocity Develop performance metrics that are embraced by our supply chain

stakeholders Jointly market the gateway and advocate for favorable funding,

legislation Continue joint efforts on environmental and safety initiatives

Broader Dialogue with Supply Chain Stakeholders Supply Chain Optimization Forum held April 23rd

Working and Core Advisory Groups and areas of focus are now established

New Levels of Engagement Ports need to restore customer confidence; proactively market to

the liner alliances; and help carriers, MTOs and secondary conveyance providers achieve efficiency gains

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Improving Cargo Flow Into Terminals

Focus Points• Further collaboration between

shipping lines, MTO’s, BCO’s, licensed motor carriers, and railroads

• Reduction in marine terminal container dwell times (terminals need to be more like factories – in and out – not cargo holding areas)

• IT solutions that provide visibility over the entire supply chain, from point of origin to destination

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Improving Secondary Conveyance

Focus Points • Re-design PierPass to meet

changing environment• Create drayage and deployment IT

solutions that are truck driver-friendly (i.e. CargoMatic, FRATIS, Quick180)

• Real-time data (routes & road conditions)

• Widespread appointment systems using one standard front-end software solution

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Deploying Chassis Solutions

Focus Points• Interoperable Chassis Pool --

opened March 1 – surpassed 1 million by April 21

• Goals• more availability where

chassis are needed• IT systems to manage

inventory/availability• Activate vacant land as needed

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Focus Points• Support more on-dock rail usage

and development• Potential short-haul trains between

inland locations (i.e. Ontario, Riverside) and port

Enhancing Rail Efficiency

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The L.A. Gateway of ConnectivitySPEED – FREQUENCY – RELIABILITY

Superior Access to U.S. Markets• No Weather Delays• Plenty of Cargo Capacity• $2.4 billion Alameda Corridor• Over 100 Trains Daily • Union Pacific & BNSF• 5.1 million TEUs Moved by Rail• Access to 14 Major Freight Hubs,

including: Chicago Atlanta Memphis Houston San Antonio Denver Omaha Kansas City Dallas St. Louis

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Containerized Grain Exports Through Port of Los Angeles

Rank

Country TEU

2013 2014 % Up/Down

1 TAIWAN 7,177 13,393 87%

2 CHINA 7,491 4,180 -44%

3 JAPAN 1,081 1,404 30%

4 INDONESIA 1,690 1,375 -19%

5 REPUBLIC OF KOREA 1,181 1,121 -5%

6 THAILAND 653 730 12%

7 MALAYSIA 908 513 -44%

8 PHILIPPINES 193 387 101%

9 HONG KONG 416 297 -29%

10 VIETNAM 902 243 -73%

All other markets … 791 545 -31%

Grand Total 22,483 24,187 7.6%

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POLA Containerized Soybean Exports

Rank Country TEU

2013 2014 % Up/Down

1 TAIWAN 21,777 25,506 17%

2 CHINA 5,706 6,872 20%

3 PHILIPPINES 10,139 5,391 -47%

4 JAPAN 5,003 5,054 1%

5 INDONESIA 1,813 4,845 167%

6 VIETNAM 6,793 3,572 -47%

7 REPUBLIC OF KOREA 1,064 2,098 97%

8 THAILAND 605 866 43%

9 MALAYSIA 232 712 207%

10 BANGLADESH 211 N/A

All other markets… 2,294 362 -84%

Grand Total 55,425 55,491 .1%

Thank You For Your Business.

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