Driving Our Ports Toward Greater Efficiency Gene Seroka, Executive Director Port of Los Angeles

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1 Driving Our Ports Toward Greater Efficiency Gene Seroka, Executive Director Port of Los Angeles 27 th Annual Apparel Importers Trade and Transportation Conference November 4, 2015

2 Carrier Business is Stabilizing 2

3 Port Productivity Has Rebounded 70 Port of Los Angeles Berth Productivity (Boxes/hour) Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 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. = #1 in US Berth Productivity Q (Journal of Commerce)

4 16000 TEU - CMA Our Changing Landscape Impact of Carrier Alliances Deployment of larger ships (10,000 TEU vessels are the new workhorses) Larger discharge of containers per ship call More alternating of service calls between terminals in LA and between LA and Long Beach (greater disbursement of cargo)

5 CY 2014 Apparel Imports: 313,639 TEUs TEU - CMA

6 Apparel & Footwear: 476,366 TEUs TEU - CMA

7 94% of San Pedro Bay Cargo G6 Was Alliance-Related in 2014 Ocean 3 CKYHE 2M

8 The L.A. Gateway of Connectivity SPEED 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

9 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 23 rd 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

10 Supply Chain Optimization Working Groups Peak Season 2015 Container Terminal Optimization Drayage Chassis KPI and Data Solutions Intermodal Rail Off-dock solutions Working Group Participants Cargo owners, terminals, shipping lines, drayage, rail carriers, ILWU, Chassis providers and Customs brokers)

11 Cargo Efficiency Solution Areas Improving Cargo Flow into the Marine Terminals More collaboration between shipping lines, marine terminal operators, beneficial cargo owners, licensed motor carriers, rail carriers and ports before vessel arrives Reduction in marine terminal container dwell times (terminals should be more of a factory in and out no cargo holding areas) 21 st Century Information technologies (IT) solutions that provide visibility to the entire supply chain -- from point of origin to destination

12 Cargo Efficiency Solution Areas Improving Secondary Conveyance Re-design PierPass to meet the changing environment Create drayage and deploy IT solutions that are truck driverfriendly (i.e. CargoMatic, US DOT FRATIS, Quick180) Real-time data (routes & road conditions) Wide spread appointment systems using one standard frontend software technology

13 Cargo Efficiency Solution Areas Refining Chassis Business Models Interoperable Chassis Pool (Pool of Pools) Opened March 1, 2015 Surpassed 1 million by April 21, 2015 Goals More availability where chassis are needed IT systems to manage equipment inventory/availability Pool of Pools display daily inventories Provide available Port land to maintain and store chassis

14 Cargo Efficiency Solution Areas Enhancing Rail Efficiency Support more on-dock rail usage and development Potential short-haul trains between inland locations (i.e. Ontario, Riverside) Stimulating Job Creation Emphasize more jobs in all areas of the supply chain including, but not limited to: warehousing & distribution centers; IT development; and training & education Create operational efficiencies that will improve velocity which will encourage job growth and job satisfaction

15 Thank You for Your Business.