1. LA Trade Gateway Update September 10, 2015 Gene Seroka, Executive Director 1

2. 2 Carrier Business is Stabilizing

3. Port Productivity Has Rebounded 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. 3 = #1 in US Berth Productivity Q1-2 2014 (Journal of Commerce)

4. 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

5. 5 Improving Cargo Flow Into Terminals Focus Points Further collaboration between Further collaboration between shipping lines, MTO’s, BCO’s, licensed motor carriers, and railroads Reduction in marine terminal container dwell times (terminals need to be more like factories – in and out – not cargo holding areas) IT solutions that provide visibility over the entire supply chain, from point of origin to destination

6. 6 Improving Secondary Conveyance Focus Points Re-design PierPass to meet changing environment Re-design PierPass to meet changing environment Create Create drayage and deployment IT solutions that are truck driver- friendly (i.e. CargoMatic, FRATIS, Quick180) Real-time data (routes & road conditions) Real-time data (routes & road conditions) Widespread appointment systems using one standard front-end software solution Widespread appointment systems using one standard front-end software solution

7. 7 Deploying Chassis Solutions Focus Points Interoperable Chassis Pool -- opened March 1 – surpassed 1 million by April 21 Interoperable Chassis Pool -- opened March 1 – surpassed 1 million by April 21 Goals Goals more availability where chassis are needed more availability where chassis are needed IT systems to manage inventory/availability IT systems to manage inventory/availability Activate vacant land as needed Activate vacant land as needed

8. 8 Focus Points Support more on-dock rail usage and development Support more on-dock rail usage and development Potential short-haul trains between inland locations (i.e. Ontario, Riverside) and port Potential short-haul trains between inland locations (i.e. Ontario, Riverside) and port Enhancing Rail Efficiency

9. 9 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

10. Containerized Grain Exports Through Port of Los Angeles Rank Country TEU 2013 2014% Up/Down 1 TAIWAN 7,177 13,393 87% 2 CHINA 7,491 4,180 -44% 3 JAPAN 1,081 1,404 30% 4 INDONESIA 1,690 1,375 -19% 5 REPUBLIC OF KOREA 1,181 1,121 -5% 6 THAILAND 653 730 12% 7 MALAYSIA 908 513 -44% 8 PHILIPPINES 193 387 101% 9 HONG KONG 416 297 -29% 10 VIETNAM 902 243 -73% All other markets … 791 545 -31% Grand Total 22,483 24,1877.6% 10

11. POLA Containerized Soybean Exports Rank Country TEU 20132014% Up/Down 1 TAIWAN21,77725,506 17% 2 CHINA5,7066,872 20% 3 PHILIPPINES10,1395,391 -47% 4 JAPAN5,0035,054 1% 5 INDONESIA1,8134,845 167% 6 VIETNAM6,7933,572 -47% 7 REPUBLIC OF KOREA1,0642,098 97% 8 THAILAND605866 43% 9 MALAYSIA232712 207% 10 BANGLADESH 211 N/A All other markets…2,294362 -84% Grand Total55,42555,491.1% 11

12. Thank You For Your Business. 12