Port of Seattle Strategies Update Commission Briefing February

Port of Seattle Strategies Update Commission Briefing February 28, 2006

The Steps of Strategy Mission Strategies Objectives Measures & Targets Initiatives Budget Results 2

Our Strategic Planning Approach: 3

Long Range Challenges & Opportunities – Some Examples • Competition from other ports and regions • Decreasing availability of public funds • Difficult financial and market conditions for many port and airport customers • New security restrictions and costs to the global transportation system • Increasing surface traffic congestion • An emerging “new economy” based on informationintensive products and services • A growing community interest in “sustainability” to achieve a long-term balance of economic, social and environmental objectives and values • Demographic changes in the present and future workforce 4

The Seven Port-wide Strategies: AIRPORT AND SEAPORT VITALITY ECONOMIC OPPORTUNITIES PUBLIC UNDERSTANDING REGIONAL TRANSPORTATION SECURITY ENVIRONMENTAL STEWARDSHIP HIGH PERFORMANCE ORGANIZATION 5

Port of Seattle – 2005 Strategy “Map” Customer: Airport Vitality Seaport Vitality Economic Opportunities Community: Public Understanding Regional Transportation Security Environmental Stewardship Organization: High Performance Organization 6

Today’s Strategy Updates Mission • Strategies & Objectives Strategies Objectives • Current initiatives Measures & Targets Initiatives Budget Results 7

Airport Vitality Strategic Objectives • Create an extraordinary “Northwest” customer experience • Maximize financial performance • Plan and deliver high-density development; optimize airport throughput capacity • Develop and maintain supportive community • Enhance our high performance workplace 8

Airport Vitality Current Initiatives • Reduce projected airline Cost per Enplanement – Increasing non-airline revenues – Examining elements of financing strategy – Evaluating scope and timing of capital program • Improve security while improving customer service – Changing role of Transportation Security Administration and airports (e. g. , exit staffing) – Evolving approach to air cargo • Continue capital investments – Roadway construction and coordination with Sound Transit – Runway / stormwater protection – Strategic asset management / sustainable facility development • Enhance community partnerships via land development • Increase focus on employee development • Improve emergency preparedness 9

Seaport Vitality Strategic Objectives • Maximize financial performance. • Maximize asset utilization and enhance long-term growth capacity. • Provide compelling value that attracts and retains customers. • Develop new business opportunities to support our core businesses. 10

Seaport Vitality Current Initiatives • Accommodating container growth, on and off terminal • Planning for beyond 3 million “Terminal Equivalent Units (TEU’s) and beyond • Capital improvements to Fishermen’s Terminal and Shilshole Bay Marina • Insuring transportation projects such as the Viaduct and SR 519 provide good access to our facilities. • Environmental Initiatives such as Air Emission Inventory, Environmental Management program at Fishermen’s Terminal 11

Economic Opportunities Strategic Objectives Develop new business and economic opportunities for the region and the port • Redevelop land build relationships to attract new jobs in the global economy • Generate new revenue through new ventures • Expand opportunities for diverse local businesses to succeed 12

Economic Opportunities Current Initiatives • North Bay comp plan entitlements with City, and city-wide industrial strategy • Puget Sound Regional Council’s Prosperity Partnership • Enhancing tourism promotion • International trade promotion • International consultancy • Small business program 13

Public Understanding Strategic Objectives Enhance Public Understanding and Support of the Port’s Role in the Region • Provide clear internal and external communications about the Port’s mission, activities and accomplishments • Enhance community engagement by improving public access to decision-making processes and providing opportunities for public interaction • Build and maintain constructive working relationships with agencies, tenants and public interest groups • Promote sound legislation and regulation 14

Public Understanding Current Initiatives • Strategic community outreach • Inclusive annual report distribution and annual meeting formats • Issue management system development • Policy alignment with City and other stakeholders in key port projects • Communicating our environmental track record 15

Regional Transportation Strategic Objectives Be a catalyst for regional transportation solutions • Ensure long-term, effective access for airport & seaport facilities • Provide access for future Port developments • Promote regional transportation improvements for enhancing global competitiveness 16

Regional Transportation Current Initiatives Airport & Seaport Access: • Airport – SR 518 extra lane, SR 509 extension, Sound Transit airport link • Seaport - Alaskan Way viaduct/seawall, Spokane St. viaduct, 519 access to T 46, Magnolia Bridge replacement Regional Competitiveness: • WSDOT studies on rail, aviation, finance and highway tolling • Sound Transit phase II • Governor’s container ports initiative 17

Transportation Security Strategic Objectives Be a Leader in Transportation Security • Provide for the safety and security of employees, tenants, passengers, and cargo moving through our facilities, through a combination of: – Prevention - risk-based investments and actions – Planning - exercises and cooperative agreements – Response – using suitable resources while maintaining functional integrity, and – Recovery - restoring critical functions to assure business continuity 18

Transportation Security Current Initiatives • Federal container security requirements • Global container security system developments • Maximizing grant income & project delivery • Contingency planning for disaster mitigation and recovery 19

Environmental Stewardship Strategic Objectives Exhibit environmental stewardship through our actions • Integrate environmental thinking into actions • Assure regulatory compliance • Minimize resource consumption • Enhance air and water quality and natural resources • Influence our business partners to be good environmental stewards 20

Environmental Stewardship Current Initiatives • Integrating sustainability into strategic asset management • Duwamish water and sediment quality • Diesel emissions – trucks, ships, busses, trains, ground support & cargo handing equipment • Third runway (water runoff, borrow sites, truck hauls) • Mayor’s Green Ribbon Commission 21

High Performance Organization Strategic Objectives Be a high performance organization • Ensure effective people leadership, management, and total compensation • Measure, innovate and improve • Optimize new technology • Achieve safety and health 22

High Performance Organization • • • Current Initiatives Healthcare cost management Labor strategy implementation IT investments & strategy development Employee development & diversity Strategic staffing – Recruiting, selection and retention – Staff and leadership development – Succession preparations 23

The Steps of Strategy Mission Strategies Objectives Measures & Targets Initiatives Budget Results 24