PNWA Summer Conference

Port of Grays Harbor:

ProposedCrude By Rail

Projects

June 23, 2014

Kayla DunlapPublic Affairs Specialist

Strategic Development Approach

• Master plan properties to find highest and best useo Identify market opportunities that make

sense

• Develop partnerships with private companieso Encourage investment – stake in the gameo Rail served, water dependent use to utilize

the navigation channel infrastructure and services

o Job creation – permanent and marine services (longshore, pilots, tugs, rail, etc.)

Why Grays Harbor?• Proximity to open ocean• Class 1 rail access – both UP and BNSF via G&W’s PSAP• Room to grow – T1 and T3• Excess shipping capacity - Vessel arrivals topped 300 in 1970’s• Experienced labor

o ILWU Local 24 has handled liquid bulks and oil products in the past

The CBR Opportunity in Grays

Harbor

• 3 separate projects proposed by experienced, private companies

• 85 permanent, family-wage jobs, in addition to longshore, rail, marine service jobs

• $180,000,000+ private investment -- expands local tax base

• 285-379 additional vessel calls; PGH handled 302 in 1972 (including 26 oil tankers)

• 12-14 unit trains per week, if all three facilities operate at capacity

CBR Projects - Westway

• The cargoo 1 unit train every 3 days – Bakken crudeo Annual throughput – 17,885,000 barrelso 99-119 ATB calls per year

• The Project:o Construct 5 – 200,000 barrel storage tanks adjacent to current facility

(phased)o Additional rail spurs to provide 80 rail car unloading spots, fully contained

• The processo Self-elected EIS January 2014o Scoping period ended May 27, 2014o Draft EIS expected in 3-5 months; out for public

review and comment before Final EIS issued o 13 permits/approvals required prior to construction;

another 13 prior to operations

• The economicso Construction cost $60 million; 9-12 monthso 60-85 construction jobso 25 direct, full time jobs including an Environmental Manager o Estimated local tax revenue: $1,500,000+ (local sales tax, B&O, permit fees)o WA State Sales tax= $3,900,000

CBR Projects - Imperium

• The cargoo 1 unit train everyday – Bakken crudeo Annual throughput – 30,000,000 barrelso 200 ATB or ship calls per year

• The Project:o Construct 9 – 80,000 barrel storage tanks adjacent to current facility (phased)o Additional fully contained rail spur on North side of plant

• The processo Self-elected EIS January 2014o Scoping period ended May 27, 2014o Draft EIS expected in 3-5 months; out for public

review and comment before Final EIS issued o 13 permits/approvals required prior to construction;

another 13 prior to operations

• The economicso Construction cost $65 million; 9-12 monthso 85 construction jobso 20 direct, full time jobso Estimated local tax revenue: $1,600,000+ (local sales tax, B&O, permit fees)o WA State Sales tax= $4,225,000

CBR Projects – Grays Harbor Rail Terminal

(USD)

• The cargoo 1 unit train every 2-3 days – variety of sourceso Annual throughput – 16,425,000 barrelso 36-60 ATB or ship calls per year

• The Project:o Construct 6-8 – 130,000 barrel storage tanks adjacent to current facility (design not

final) o Additional fully contained rail spur on North side of plant

• The processo Submitted permit applications and SEPA

checklist to the City of Hoquiam June 10, 2014o 13 permits/approvals required prior to

construction; another 13 prior to operations

• The economicso $80 million investment; 12-15 monthso 90-100 construction jobso 35-40 direct, full time jobso Estimated local tax revenue: $1,900,000+ (local sales

tax, B&O, permit fees)o WA State Sales tax= $5,200,000

Challenges

• CBR website • Monthly email to community/business leaders• CBR update/speakers at Commission Meetings

o Regulatory: FRA, USCG, DOE, City of Hoquiamo Rail: PSAP, BNSFo Project: Westway, Imperium, GHRT

• Well organized local opposition (NIMBY’s)• Quinault Indian Nation/Earth Justice• More than 22,000 public comments received during EIS

scoping

PGH

Action

THANK YOU

Questions?