Port of Los Angeles

Japan Business Association July, 24, 2009

Port Development History(1872 to Present)

San Pedro Bay

APM – 484

APL – 292

Evergreen -205

YTI – 185

Vacant - 84

CSCL - 75

WBCT - 186

TRAPAC - 173

TTI - 375

Pier A - 170 Matson - 70

CUT - 108

LBCT - 102

ITS - 246

PCT - 256

CruiseCruise

Autos

Marinas

Liquid Bulk

Liquid Bulk

Pasha

SSA

Autos

• Founded in 1907

• Non-taxpayer supported

• 7,500 acres of land and water

• Annual container volume7.85 million TEUs (CY 2008) largestport in the nation

Port of Los Angeles

• Cruise

• Fishing

• Commercial/Retail

• Marinas

• Non-containerized cargo

• Container Cargo

Port of Los AngelesLand Use Diversity

Current Container

Terminal Area =

approx 1700 acres

Port of Los Angeles Container Terminals

APM Terminals

Maersk

APL / Eagle Marine

Evergreen / STS

YTI / NYK

TraPac / MOL

Yang Ming / WBCT

China Shipping

WBCT

1. Singapore 27,900

2. Shanghai 26,150

3. Hong Kong 23,880

4. Shenzhen 21,100

5. Busan 13,270

6. Rotterdam 10.790

7. Dubai 10.650

8. Kaohsiung 10,260

9. Hamburg 9,900

10. Qingdao 9,460

13. Los Angeles 7,850

15. Long Beach 6,488

*Los Angeles / Long Beach together rank

FIFTH in the world (15,7 million Teus)

Top World Ports

In TEUs, or Twenty-Foot Equivalent Units (000s)Calendar Year 2008

Top North American Ports

1. Los Angeles, CA 7,850

2. Long Beach, CA 6,488

3. New York/ New Jersey 5,236

4. Savannah 2.616

5. Oakland, CA 2,236

6. Vancouver, BC 2.154

7. Norfolk 2,083

8. Tacoma, WA 1,861

9. Houston 1,794

10. Seattle 1,704

Source: Containerisation Int.

L.A./ L.B.

2008 Top Container Ports

• Capacity to handle approx. 18 million TEU’s

• Population of 21.5 million within a 2 hour truck trip from the Port

• A large business base of over 485,000 firms

• Concentration of manufacturing activity in Southern CA with over 930,000 workers

• Excellent port & intermodal rail infrastructure

• ILWU: 10,130 permanent & casual labor in 2004 to 17,000 + in 2006 at POLA/POLB ( + 69% )

Source: Los Angeles County Economic Development Corp.

Port of Los AngelesThe Right Place for Business

Port of Los Angeles Top Trading Partners

(2007 Cargo Value)

• China/HK - $115.2 billion

• Japan - $39.2 billion

• Taiwan - $14.6 billion

• S. Korea - $9.7 billion

• Thailand - $6.9 billion

Port of Los Angeles

Containerized Cargo (CY 2008 in TEUs)

Top 5 Imports

Apparel/Footware 494,372

Furniture 415,273

Elect. /Computers 382,003

Auto Parts/Tires 309,740

General Cargo 131,784

TOTAL 1,423,432

Top 5 Exports

Wastepaper 243,360

Scrap Metal 183,096

Grain/Soybeans 138,942

Cotton 117,486

Pet & Animal Feed 77,448

TOTAL 760,332

San Pedro Bay Volumes

Source: Port of L.A. , Port of Long Beach, Global Insight and the Tioga Group

POLA Marketshare(inbound loaded containers)

1

2

3

4

5

56 7

8

9

10

How POLA Will Support Growth

1. TRAPAC - +60 acres

2. Yang Ming - +30 acres

3. China Shipping - +30 acres

4. Evergreen - +55 acres

5. PASHA

6. Valero

7. Berths 206-209

8. YTI - +80 acres

9. APL - +40 acres

10. Plains All American (Pacific

Energy)

11. ICTF modernization and new

BNSF Rail yard

After container terminal expansion Port can handle up to 21.5 million

TEUs

11

Infrastructure Improvements

1986 – SPRR/UPRR ICTF

1997 – TICTF (NYK/Ever Green) and APL

1999 – West Basin Container Terminal

(YML/China Shipping)

2002 – APM Terminals

(Maersk Line)

2012 – New on-dock rail for TRAPAC (MOL)

UPRR modernization plans

On/Near Dock Rail Facilities

DAS

PST

Non-Container Terminals

DAS

PST

Steel Products: 2.2 Million MT

Fruit: 135,919 MT

Auto: 151,584 Cars

Liquid Bulk: 10.6 Million MT

Cement: 142,240 MT

Metal Scrap: 1.07 Million MT

Non-Container Terminals

865,000 passengers

165 ship calls in 2008

Capacity for up to 3 Cruise vessels

Princess Cruises, Royal Caribbean, Celebrity Cruises, Crystal Cruises, Cunard Line, Holland America, Norwegian Cruise Line, Radisson and Seven Seas

San Pedro Waterfront Project proposes expansion of cruise operations to outer harbor.

Cruise Center Operations

• Close to 900,000 regional jobs

• Over 3.3 million jobs nationally

• $72.7 billion trade value, regional

• $298+ billion trade value, nationally

• 44% of all waterborne import

• $7.8 billion in regional taxes

Economic ImpactSan Pedro Bay Ports

Air Quality

Port Emission Sources

• Five-Year Action Plan

• Joint Port Initiative

• Pollution-Reduction Targets:

Diesel Particulate Matter by 47%

Nitrogen Oxide (NOx) by 45%

Sulfur Oxides (Sox) by 52%

• $2+ billion program

Our Solution.San Pedro Bay

Clean Air Action Plan

What New EIR/Leases Will Include

• AMP within time frames

• Yard equipment replacement

• Reduction in vessel speeds

• Vessel fuels

• Locomotives (new EPA ruling)

• On-road truck requirements

Other Ports are facing similar issues/challenges

Clean Trucks Program

• Reduction of 80% truck emissions

• Replacing 16,800 trucks by 2012

• Pre-1989 engine model year trucks banned on October 1, 2008

• Jan 1, 2010: prohibit entry to all trucks with MY1989-1993 engines.

• MY1994-2003 truck need retrofitted with an approved emission controls.

• Jan 1, 2012: Prohibit entry to all trucks with engines that do not meet 2007 EPA emission standards

• $35/TEU fee truck replacement

Where are we today?

• In the depths of a global recession.

• U.S. GDP projected to decline 3.9% in 2009.

• Longest Postwar Recession (previous record: 16 months in 1981-82).

• Unemployment to rise above 10%.

Port of Los AngelesVolume Since January 2008

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Jan-

08

Feb-

08

Mar-

08

Apr-08 May-

08

Jun-

08

Jul-08 Aug-

08

Sep-

08

Oct-08 Nov-

08

Dec-

08

Jan-

09

Feb-

09

Mar-

09

Apr-09

All U.S. West Coast Portsare impacted

2009 1st

Quarter2008 1st

QuarterChange % Change

Los Angeles 1,527,402 1,849,885 -322,483 -17.43%

Long Beach 1,091,468 1,549,055 -457,587 -29.54%

Vancouver 435,009 529,784 -94,776 -17.89%

Oakland 459,865 545,733 -85,868 -15.73%

Tacoma 379,174 444,383 -65,209 -14.67%

Seattle 329,275 431,101 -101,826 -23.62%

Portland 45,589 65,565 -16,976 -25.89%

Total 4,270,781 5,415,506 -1,144,725 -21.14%

Economic Effects to the Shipping Lines

• Revenue declining – ocean freight rates under $1000 per 40’ (last year over $2000)

• Industry lay offs

• Vessel re-deployments

• No new container vessel orders

• Vessels sitting idle:

October 2008: 70 vessels or 150,000 TEU

July 20, 2009: 520 vessels or 1.28 million TEUs (10% of world’s containership fleet)

Is there any good news at all?

• By the end of 2009, most of the contractionary forces will have reversed and the various stimulus measures will begin to work.

• The average quarterly growth for 2010 is predicted to be 2.7%, and a more robust 4.1% in 2011.

• Imports go from being down 14.3% in 2009 to increasing 4.2% in 2010 and 7.3% in 2011.

• Consumer spending doesn’t return to bubble-era levels, but does increase - the savings rate of 6% will fall back to 4% in 2010 and 3% in 2011.(Predictions courtesy of the UCLA Anderson Forecast, March 2009)

What is the Port Doing now?

• Working with customers to offer incentives to keep cargo flowing.

• Delaying infrastructure fees.

• Supplemental space assignment at lower rates

• Going after stimulus dollars to help support job-creating port improvement projects.

• Terminal expansions for the future

The Future is Now!

Thank you!