Seaport Asset Management Program Overview

February 15, 2013

Scott Pattison, Seaport Asset Manager

Port of Seattle Seaport – Terminal Overview

Container, Cruise, Bulk and Industrial Terminals are comprised of: • Dock Systems - > 31,500 lineal feet of aprons • Yard Systems - > 950 acres of terminal space • Building Systems - > 1,200,000 s.f. of buildings

Seaport Asset Management Focus Focus on our major container and cruise terminals: • Dock Systems – Piles, caps, decks, bulkheads… • Yard Systems – Paving, utilities, lighting, fencing… • Building Systems – Roofs, foundations, systems… • Berth Area – Depth surveys, maint. dredging

Seaport Asset Management – Phase I

• Two years, $2 million • Perform condition assessments of priority

terminal systems • Prepare a prioritized list of repairs/upgrades • Develop a program for ongoing inspections

Dock System Comprehensive Condition Assessments

• Completed CCAs on major terminals’ dock

systems in two years, for ~$2 million. • Prepared a program for ongoing dock

inspections • Prepared a prioritized list of repairs/rehabs

Yard and Building Systems • Developing layered drawings of major terminals’ systems • Includes buildings, paving, water, sewer, electrical… • Holding roundtables with staff, tenants to identify needs • Consolidating roundtable findings with lists from

Engineering, Maintenance, Finance, Risk, Survey and others • Will prioritize/align findings with business objectives • Will help drive capital and expense budget process annually

Electrical and Communications - Site Plan

NOTE: All investment needs and costs are hypothetical

Electrical and Communications - Investment Needs

Substation and Ductbank Replacement

$450K

NOTE: All investment needs and costs are hypothetical

Water Systems

Water Main Replacement

$300K

Water Systems – Investment Needs

NOTE: All investment needs and costs are hypothetical

Recommended Investments - Overview

W-1 Foundation Adjustment

$250K A-4 Roof

Replacement $400K

Water Main Replacement

$300K

Substation and Ductbank Replacement

$450K

Lift Station Replacement

$250K

Total Cost $2.1 M High (1-2 years)

Medium (2-4 years) Low (4-5 years)

Paving Improvements

$300K

Priority:

Storm Drain Repairs $250K

NOTE: All investment needs and costs are hypothetical

Major Rehab Totals Items costing minimum $100,000. ($000’s)

NOTE: All investment needs and costs are hypothetical

Priority Project Description Port Cost Tenant Cost1 A-1 Roof Replacement 250 1 W-1 Foundation Repair 350 1 Repave Truck Entry 100 1 South Substation Replacement 300 1 South Water Main Repair 150 1 Total 750 400 2 A-1 HVAC 150 2 M-1 Doors 250 2 M-1 Roof 300 2 South Yard Repave 200 2 Reefer Rack Upgrades 400 2 Shore Power Upgrade 300 2 Total 700 900 3 Flag Poles 100 3 A-2 Roof 150 3 Police Station Parking Lot 150 3 Police Station Grounding Upgrade 200 3 Total 500 100

Port TenantGrand Total (5 Years) 1,950 1,400

Port of Seattle Seaport Summary • Started AM with CEO-defined budget/schedule – $2 million/2 years • This mandate narrowed AM scope to mission-critical assets • Findings are being used to guide budgets and business decisions • Our Asset Management program will evolve over time as we align its

costs and benefits to our needs – continuous improvement • The Program is changing our culture at all levels and between

departments

• Key Thought – For ports with aging infrastructure, initiating an AM program is as important as what the launch program entails. Start small, learn how to manage it, and build a program suited to your port’s specific needs over time

Questions/Discussion