1. Port Competitive Advantages

2. On West Coast Nearest Asia Los AngelesLong Beach

3. 8,000-Container Post-Panamax Ships Deep Water Ports Can Serve Ships Drawing Over 50 feet of Water

4. Great Infrastructure

5. Issue: Balancing Health & Jobs

6. Operations Bring Rising Asthma & Cancer Risk From Airborne Toxics Source: SCAQMD, Multiple Air Toxics Exposure Study II, March 2000 Cancers per million

7. Clean Truck Fees & Program Other Measures Underway

8. Ports Drive Badly Needed Blue Collar Logistics Job Creation

9. But Containerized Imports Down Dramatically -30.1%

10. Logistics Joined Blue Collar Job Losses

12. Gold Mine Theory Primary Tier Secondary Tier -$10.6 Billion

13. Soaring Numbers of Unemployed 528,022 Avg. Jan-2000 to Jun- 2007 1,273,700 July 2009 2.41 Multiple: Increase Source: CA Employment Development Department Number of Unemployed, Southern California Avg. Jan-2000 to Jun-2007 v. July 2009 Poverty Is Also A Health Issue

14. Slowdown Why The Port Slowdown ?

15. U.S. Economy Has Shrunk -7,205,000 Jobs

16. Many BCOs But Also, Ports Increasingly Regarded As Unreliable By Many BCOs UP Buys SP, Trains Can’t Move ILWU-PMSA Lockout/Strike 93 Ships Can’t Be Unloaded: Not Enough Labor Rains Wash-Out Rail Track Clean Truck & Infrastructure Fees Employee Truck Mandate & Lawsuits Riverside Suing Ports LA-Oak Congressional Work on Employee Driver

17. The Diversion Fear : 4-Corners Strategy Panama & Suez Loss of 4% Market Share

18. Substantially Delayed Cargo Forecast & Economic Impact Will Likely Be Substantially Delayed 3.7 3.84.1 4.4 5.1 5.4 5.8 6.5 7.5 8.2 9.59.6 10.6 11.8 13.1 14.2 15.815.7 14.5 1990 1991 199219931994199519961997199819992000 2001 2002200320042005200620072008 42.5 2025e 42.5 2035e TEU=20 foot equivalent container units Source: Ports of Los Angeles & Long Beach; forecast: Moffatt & Nichol Engineers Port Container Traffic Ports of Los Angeles & Long Beach, 1990-2008 & Long Term (million TEUs) Loss of 4% Market Share

19. Industrial Real Estate Absorption Has Stopped

20. Infrastructure Long Term Issue: Infrastructure

21. Worst in nation since 1982 Trucks & Traffic Congestion Slows Movement of Goods, Lowers Competitiveness, Adds To Air Quality Difficulties

22. Lack of Rail Grade Separations Dividing Cities

23. $$$

24. Invested Leaders Have Invested In Infrastructure Inter-State Freeway System President Eisenhower State Water Project Governor Pat Brown We Need To Do It Again!