APPLICATION TO THE U.S. DEPARTMENT OF TRANSPORTATION
TRANSPORTATION INVESTMENT GENERATING ECONOMIC RECOVERY
PROGRAM FOR FISCAL YEAR 2013
In response to solicitation # DTOS59-12-RA-TIGER5
TERMINAL 46 MODERNIZATION
PORT OF SEATTLE
Unlocking the Port’s Potential for the 21st Century
PORT OF SEATTLE MODERNIZATION
Unlocking the Economic Potential of the Port as a Hub for Business & Commerce
June 3, 2013
A PROPOSAL SUBMITTED BY: THE PORT OF SEATTLE
PORT POINT OF CONTACT
Mr. Ryan McFarland
Policy Analyst
Port of Seattle
206.787.3014
mcfarland.r@portseattle.org
TABLE OF CONTENTS
I. Project Description .................................................................................................................2
II. Project Parties .........................................................................................................................5
III. Grant Funds and Sources/Uses of Project Funds ................................................................5
IV. Selection Criteria ....................................................................................................................7
A. Long-Term Outcomes ........................................................................................................7
1. State of Good Repair ....................................................................................................7
2. Economic Competitiveness .........................................................................................10
3. Livability ......................................................................................................................14
4. Environmental Sustainability ....................................................................................15
5. Safety ............................................................................................................................17
6. Project Readiness .........................................................................................................18
B. Innovation .........................................................................................................................24
C. Partnership .......................................................................................................................25
D. Results of Benefit-Cost Analysis .....................................................................................26
VI. Planning Approvals and NEPA ...........................................................................................28
VII. Federal Wage Rate Certification .......................................................................................30
WEBSITE APPENDICES:
http://www.portseattle.org/Supporting-Our-Community/RegionalTransportation/Pages/TIGER.aspx.
• Cost/Benefit Analysis
• NEPA documents
• Letters of support
• Link to local and regional planning documents
LIST OF
FIGURES
Figure 1: T46 Modernization Projects and Existing Infrastructure ........................ 1
Figure 2: Terminal 46 Overhead View ................................................................... 3
Figure 3: Other Infrastructure Development to be Leveraged by T46
Modernization Project ............................................................................. 4
Figure 4: Terminal 46 Modernization Project Costs........................................... 5-6
Figure 5: Deck Panel and Pile Cap Deterioration at Terminal 46 .......................... 7
Figure 6: Cross Section of Container Terminal Dock ........................................... 7
Figure 7: Service Life of Dock without Timely Repairs ........................................ 8
Figure 8: Service Life of Dock with Timely Repairs Extending Useful Life ........ 8
Figure 9: View of the Union Pacific Railroad Argo Yard……………………...…9
Figure 10: Export Commodities via Seattle .......................................................... 10
Figure 11: Hay Being Loaded into Containers ...................................................... 11
Figure 12: Container Transport .............................................................................. 11
Figure 13: Economically Distressed Areas Served by Port Modernization .......... 12
Figure 14: Port of Seattle Workers ........................................................................ 13
Figure 15: T46 Project Creates Good Jobs ............................................................ 13
Figure 16: Terminal 117 Site Overview ................................................................ 14
Figure 17: Port of Seattle is a Green Gateway ....................................................... 16
Figure 18: Argo Connector Road Current and Proposed Configuration................ 17
Figure 19: Stormwater System Installation, Repaving and Dock Rehab at T46 ... 18
Figure 20: Project Cost Broken Down by Component ..................................... 20-21
Figure 21: T46 Modernization Project Schedule .............................................. 22-23
Figure 22: Container Ships Serving Terminal 46 .................................................. 26
Figure 23: T46 Modernization Required Permits and Timeline ....................... 29-30
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
Figure 1: T46 Modernization Projects and Existing Infrastructure
1
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
I. Project Description
The Port of Seattle’s Terminal 46 (T46) is a critical node in a trade corridor stretching from Asia
to the United States. T46 was one of the first container terminals in the U.S., helping enable the
massive growth of U.S.-Asia trade during the second half of the 20th Century. The facility is
located in the state’s largest manufacturing and industrial center, and experienced an 85% growth
in exports from 2001-2011. Today, it remains one of our nation’s premier trade infrastructure
assets, serving 7 international shipping lines, approximately 225,000 container moves and over
275,000 gate transactions annually. The 87-acre terminal has 2 51+ feet deep berths, 5 container
gantry cranes (3 super post-Panamax and 2 post-Panamax), and 538 reefer plugs.
After several decades of service, investments must be made at T46 to address maintenance issues
that threaten the reliability, cost-effectiveness and efficiency of the trade corridor and to compete
with major upgrades at Canadian ports. The T46 Modernization Project will perform
maintenance to extend the service life of the Port of Seattle’s (“the Port”) T46 by 25 to 30 years.
The project will make enhancements to enable the terminal to service two super post-Panamax
ships simultaneously. The Project will improve port competitiveness and protect decades’ worth
of investment, and bring $10.3 billion1 in benefits compared to a no-build scenario. The TIGER
Project’s components, described in greater detail below, are:
•
•
•
•
•
•
T46 Dock Rehabilitation: Repair container berth pile caps and deck panels that have
deteriorated with the passage of time.
T46 Stormwater Quality Improvements: Treat runoff from the terminal to achieve the
highest water quality standard in the nation.
T46 Paving: Repair terminal apron and container yard that is currently deteriorating and
causing safety concerns.
T46 Crane Rail Extension: Extend dock crane rail to allow additional 100’ gauge crane
to work full length of T46, enabling it to serve 2 super post Panamax vessels at once.
Argo Safety and Congestion Improvement Connector Road: Improve safety and reduce
traffic congestion by providing a more direct link from seaport terminals to the Union
Pacific Railroad’s Argo intermodal yard. The Project will grade-separate truck traffic
from State Route SR-99, allowing trucks to avoid cutting across three lanes of traffic.
Terminal 117 (T117) Public Shoreline Access Development: Convert T117 parcel into
public shoreline access while restoring fish and wildlife habitat. Designated as a
complimentary offset to developments at T46, this element will create a multi-use
community space adjacent to an underserved neighborhood.
Ideal Location Generates Economic Gains: The Port’s naturally deep water harbor and state-ofthe-art cargo handling facilities helped make Seattle the nation’s eighth busiest U.S. container
port in 2012, serving 18 international and domestic steamship lines. Over the past ten years, the
Port of Seattle’s annual container volume has averaged 1.9 million twenty-foot equivalent units
(TEU’s). The Port is ideally geographically situated as the “Green Gateway,” offering the lowest
carbon footprint for marine cargo shipped to the U.S. from Asia (with ultimate destination to the
Midwest) because it is the closest U.S. port to major Asian ports. The Port of Seattle provides
1
At a 7% (NPV) assumption, total benefits of the project are $5.1b while a 3% NPV yields $7.5b in total benefits. See §IV.4 BCA
2
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
efficient connections to two Class I domestic railways, as well as the I-5 and I-90 corridors.
International trade at the Seattle seaport is valued at $38b per year, including $4.3 billion in
agriculture exports. The Seattle Seaport is also one of the region’s largest employers, supporting
56,256 direct, indirect and induced jobs and 135,100 related jobs in Washington. 2 The Port’s
container business alone supports 22,892 total jobs, including high-paying blue collar jobs.
Danger of Discretionary Cargo Diversion: On average, as much as 70% of import cargo
moving through the Port of Seattle is discretionary, meaning that its final destination for U.S.
consumption is not the Northwest, but the Midwest or beyond. In addition, a substantial portion
of the Port’s export cargo originates from inland points. The Port’s discretionary cargo has been
aggressively targeted by ports in Canada. Since 2006, Seattle-Tacoma declined from 16.5% of
West Coast container market share to 15.2% in 2012. In the same period, Canadian ports grew
from 9% to 13.9%, aided by hundreds of millions in infrastructure investments by the Canadian
government for the ports of Prince Rupert and Vancouver. Two-thirds of Prince Rupert’s import
volume in 2012 was U.S. cargo that would otherwise be shipped through U.S. West Coast ports.
This type of cargo diversion threatens over 6,100 U.S. transportation sector jobs in Seattle alone
and reduces export container capacity for American goods. The T46 Modernization Project is
integral to the Port’s ability to maintain its status as a premier international logistics hub and an
economic engine that generates over 56,000 seaport-related jobs in Washington State.
Figure 2: Terminal 46 Overhead View
2
“The 2007 Economic Impact of the Port of Seattle,” Martin Associates, Prepared for the Port of Seattle, 10 February 2009.
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Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
Improving Facilities and Mitigating Impacts: The Port recognizes it is important to proactively
mitigate impacts of its operations on the community and the environment. It therefore
coordinates upgrading roads and truck access outside its property lines with terminal projects
like the T46 Modernization TIGER project. The Port continues to make investments aimed at
improving safety, reducing congestion, while at the same time working to offset the
environmental impacts of T46 and the other container terminals in the harbor. In addition to
investing around $1 billion in its container terminals since the late 90’s, including $72 million in
improvements at T46 in 2004, the Port has invested $62 million in other jurisdictions' road
projects to leverage $795 million in roadway infrastructure over the last decade. The Port has
committed an additional $281 million towards a major ongoing project to replace SR-99 along
Seattle’s Central Waterfront. The Project will grade-separate truck traffic from the lead track for
BNSF’s Seattle International Gateway (SIG) rail yard at the truck entrance to T46.
The T46 Modernization proposed in this TIGER grant application would allow for enhanced
operations at the Port, leveraging previous investments by the Port and its state and local partner
agencies. Figure 3 below illustrates the infrastructure improvements within the last decade that
will be leveraged by the modernization.
Figure 3: Other Infrastructure Development to be Leveraged by T46 Modernization Project
Lead
Agency
WSDOT
WSDOT
Seattle
Port/Seattle
Port/Seattle
Port/Seattle
Port/Seattle
Seattle
Seattle
WSDOT
Project Title
SR-519 Phase 1: Atlantic St Eastbound
Offramp
SR-519 Phase 2: WB-off & Royal
Brougham Way
Spokane St. Viaduct
East Marginal Way Grade Separation
Clean Truck Project
East Marginal Way Grade Separation II
Argo Yard Truck Access
Duwamish Intelligent Transportation
System
Seattle Industrial Areas Freight Access
Project
sub-total without Viaduct
AW Viaduct Replacement Project
Total non-Port Assets
Year
Completed
Port of
Seattle
Share
Total Project
(in 1,000’s)
2003
$7,050
$109,300
2009
$5,500
$74,400
2009
2012
2014
2014
2014
$3,400
$20,400
$476
$2,000
$2,200
$168,500
$52,700
$4,001
$2,000
$7,800
2009
$500
$9,100
2014
$250
$284
$62,676
$795,101
$281,000
$343,676
$4,200,000
$4,995,101
2012-16
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Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
II. Project Parties
Port of Seattle: The Port of Seattle is a municipal corporation serving the citizens of King
County by creating economic growth. One of the most diverse ports in the nation, the Port has
three operating divisions (Aviation, Real Estate and Seaport), as well as capital development and
corporate divisions. It is overseen by an elected five-member commission. The Port also operates
four public marinas, and manages a number of real estate assets. Port activities generate 194,000
jobs in Washington State. The Port’s vision is to add 100,000 jobs through economic growth
over the next 25 years while reducing its environmental footprint, and aims to be the greenest
and most energy-efficient port in North America.
III. Grant Funds and Sources/Uses of Project Funds
The non-Federal funds listed below are already committed to the project and are available to be
spent upon TIGER award. A non-federal match of $49.1 million is committed to the project.
Every dollar of TIGER funding leverages approximately $2.34 of Port and non-Federal funding.
In total, the Port requests $21m to complete the project. The Port plans to spend TIGER funds
across four components to align with the TIGER allocation timeline, but is open to changes in
how funding is distributed amongst the various components. While there is a $21m gap to
complete the Project, TIGER funds could be obligated in different ratios than those listed below.
Figure 4: Terminal 46 Modernization Project Costs
Project
Component
T46 Dock Rehab
T46 Stormwater
Improvements
T46 Paving
Component Description
Cost
Rehabilitate container berth pile caps and deck panels
that have deteriorated with the passage of time by
removing corrosive concrete, repair rebar and recast
with new cement “grout.” Completion of this project $24.8
component is expected to preserve the existing use
and capacity of T46’s two containership berths for a
length of about 2,440 feet.
Construct a stormwater system to treat runoff from
the terminal. Once complete, the project will allow
T46 to achieve the highest water quality standard in
the nation, demonstrate best practices for maritime
$10.1
industry sustainability and improve conditions for
aquatic life in an industrial environment. The Port will
also upgrade the existing wash rack to meet existing
storm water standards.
Pave approximately 435,000 square yards of the
terminal apron and container yard. The project will
reduce wear and tear on equipment and improve $17.7
safety. The Port will also install new central lighting
controls to improve safety and energy efficiency.
NonFed
Match
TIGER
$13.3
$11.5
$9.1
$1
$12.6
$5.1
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Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
Project
Component
T46 Crane Rail
Extension
Argo Connector
Road
T117 Public
Shore Access
Development
Total
Component Description
Cost
NonFed
Match
TIGER
Upgrade approximately 200 lineal feet at the north
end of the existing dock apron at T46 to increase load
capacity and allow two 100-foot gauge cranes to work
the full length of the terminal simultaneously. The
Project will allow larger cranes the wider range of $7.6
$4.2
$3.4
movement needed to load and unload two super postPanamax ships simultaneously.
To allow for the upgrade, Crane 54 will be removed to
allow for effective configuration of the dock space.
Construct a new south-to-eastbound connection to
grade-separate drayage truck traffic headed for the
Union Pacific Railroad’s Argo Yard from SR-99. The
Argo Connector road will eliminate the need for trucks
$7.3
$7.3
$0
to cross three lanes of fast-moving south-bound SR-99
traffic within 1,200 feet, and a signal phase that stops
north-bound SR-99 traffic to allow the trucks to cross
the north-bound lanes.
Provide public amenities that will enable community
access to 13.8 acres of restored fish and wildlife
habitat on and around the Terminal 117 site. The
features will include walkways, a gathering area, $2.6
$2.6
$0
viewpoints, interpretive elements, a canoe launch and
integrated public artwork. This project component
serves as offset for development at T46.
These components work together to leverage existing
49.1
21
infrastructure and make the Port viable and 70.1
(70%) (30%)
sustainable.
*Numbers given in millions of dollars
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Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
IV. Selection Criteria
A. Long-Term Outcomes
1. State of Good Repair
The T46 Modernization Project encompasses complementary project components needed to
rehabilitate and upgrade facilities that, if allowed to continue to deteriorate, would threaten
future transportation network efficiency and economic growth. The Project and its components
exemplify the Port’s “Triple Bottom Line” approach by providing for continued economic
growth while reducing environmental impacts and serving the community by creating new public
shoreline access in an underserved neighborhood. In addition, the Project is making existing
assets more productive by leveraging already upgraded road and rail networks. The Project is
consistent with relevant State, local and regional efforts and plans to maintain transportation
facilities/systems in a state of good repair.
Figure 5: Deck Panel and Pile Cap
Deterioration at Terminal 46
Figure 6: Cross Section of Container Terminal
Dock
Natural Depth Eliminates Dredging Need: The berths at T46 are some of the deepest in the
U.S. Water depth averages 75 feet across the berth; 51 feet adjacent to the terminal and over 100
feet on the harbor side of a ship. While most container terminals in the U.S. require regular
dredging to remove sediments that build up over time with the Federal government paying the
cost, no sedimentation occurs at T46. Other than removing some under-dock slope armoring that
sloughed off into the berth in the 70’s, T46 has never required maintenance dredging at Port
berths, much less in the federal channel. Thus, the investments on T46 itself make the facility
usable without additional dredging and sediment disposal costs.
Timely Dock Rehabilitation Extends Service Life: Comprehensive condition assessments of
Port of Seattle dock systems began in 2007 as part of its Asset Stewardship Strategy. Initial
findings presented in condition reports indicated that rehabilitation work was needed on both pile
caps and deck panels to minimize life cycle costs of T46 infrastructure. The 2011 condition
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Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
survey of the T46 dock confirmed and expanded on prior survey findings regarding deterioration
of key elements of the dock, including the berth pile caps and deck panels. By rehabilitating the
dock now, the Port expects to extend its service life by 25 to 30 years. The innovative approach
the Port has developed will provide a model for marine terminals across the nation that are facing
similar deterioration issues, and it is being closely monitored by marine engineering firms,
engineering associations such as the American Society of Civil Engineers (ASCE), and other
ports. Figure(s) 7 and 8 below illustrate how timely repairs can extend the life of the dock,
avoiding a more costly tear down and rebuild scenario. 3
Pay Now or Pay More Later for Dock Rehab: The total costs, both financial and environmental,
of rehabilitating dock structures is substantially less than the time, cost and loss of use associated
with removal and replacement. Dock replacement would involve: Shutting down operations,
demolition and disposal of in situ materials, fabrication and construction of new dock
components, and then resumption of operations. Estimates suggest a $36.9m investment in
rehabilitation of an existing dock structure would provide levels of service consistent with a
$303.3m removal and replacement project, while maintaining operations and avoiding
environmental implications of removal and replacement.
Figure 7: Service Life of Dock without Timely
Repairs
Figure 8: Service Life of Dock with Timely
Repairs Extending Useful Life
Pavement Deterioration Causing Hazardous Conditions: The Joint Accident Prevention
Committee (JAPC) of Seattle, which is comprised of local International Longshore and
Warehouse Union (ILWU) leadership, the Pacific Maritime Association and industry
stakeholders, has expressed concerns about the safety of the T46 surface. The JAPC has
reported potholes and wavy, buckling pavement across the dock that creates driving and tripping
hazards.
3
Engineering-based condition assessment prepared by D. R. Uzarski, Ph.D., P.E. The basis of the estimated number of years
applies theory and field observation to calculate the total service life of a new or rehabilitated structure. Service life
predictions for concrete docks exposed to salt water are based on the following:
•
The amount of corrosive chemicals in the environment surrounding the concrete
•
How quickly the corrosive chemicals move through the concrete
•
The distance the corrosive chemicals need to travel through the concrete
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Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
New Argo Railroad Yard Connector Reduces Truck Traffic on SR99: The primary purpose of
the Argo Connector road is to grade-separate the truck route from the Port’s T46 and other
container terminals to the Union Pacific’s Argo Rail Yard to improve safety conditions and
reduce congestion. Currently, trucks must weave across three lanes of south-bound SR-99 traffic
in less than 1,200 feet to reach the signalized left turn lane at Diagonal Avenue South. This
“weave” is both a safety and operational liability on SR-99. North-bound SR-99 traffic must then
be stopped to allow the trucks to cross the north-bound lanes, creating further delay. The new
road would be utilized by 350 to 620 trucks per day.
Stormwater Handling Improvements Needed: The existing stormwater system cannot mitigate
turbidity, zinc, copper and nutrient loads to meet current benchmark levels and needs to be
upgraded. The planned upgrades are discussed below in the §IV.B Innovation.
Sustainable Revenue Stream: Once improvements are completed, tenant fees will be a
sustainable source of revenue for long-term operations and maintenance of the Project. Operating
revenues received from the T46 lease payments are placed into the Seaport General Fund where
they are then allocated for general maintenance and repair as needed and/or budgeted according
to the Port’s asset management plan.
Figure 9: View of the Union Pacific Railroad Argo Yard
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Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
2. Economic Competitiveness
The T46 Modernization Project is critical to the Port’s ability to maintain its status as a premier
international gateway connecting the U.S. Midwest and beyond to global markets. Protecting and
growing the Port’s market share in the trans-Pacific trade lane will benefit U.S. exporters by
providing greater vessel capacity and container availability, lower shipping costs due to greater
efficiency and supply of equipment, more frequent calls by ocean carriers serving more export
markets, and shorter time to market. Recently, however, Ports in Canada and Mexico are
investing in infrastructure in an effort to gain market share from U.S. West Coast ports. Because
of the Port’s geographic position and the fact that the ocean carriers calling at Prince Rupert are
the top two users of T46, Seattle is the U.S. port most sensitive to cargo diversion.
Port is Central to Economic Vitality: On a per capita basis, Washington State exports more than
any other U.S. state. In a state where an estimated 40% of jobs are trade-related and over 8,500
Washington companies are currently exporting, the Port of Seattle is the backbone of the trade
industry. The Port of Seattle is instrumental in producing family-wage jobs that are a key driver
of job growth and economic prosperity. The Port generates 21,695 direct jobs with $1.6 billion of
personal income, as well as 7,845 indirect jobs, 26,716 induced jobs, $2.5 billion of business
revenue and $457.5 million in state and local taxes. 4
T46 is an important component of the Port of Seattle’s
operations, handling approximately 20% of the container
cargo passing through the Port. This cargo volume creates
over 3,200 direct and indirect jobs. T46 terminal activities
generate over $370 million annually in business revenues
and over $24 million in state and local taxes.
Planning for Growth: In its Century Agenda, the Port’s
strategic vision for the next 25 years, the Port has
committed to positioning the Puget Sound region as a
premier international logistics hub and growing annual
container volume to over 3.5 million TEUs. The upgrades
proposed in the T46 Modernization are integral to
achieving these goals.
These strategic investments
increase the Port’s ability to export more quantities of
goods, and thereby benefit the agricultural and other trade
communities which rely on exports.
Figure 10: 2012 Export
Commodities via Seattle (millions)
Commodity
2012 Value
Machinery
$ 818.58
Preserved Food
$ 489.00
Edible Fruits and Nuts
$ 450.12
Paper; Paperboard
$ 381.75
Meat
$ 357.87
Fish and Seafood
$ 354.02
Grain, Seeds, Fruit
Chemicals; Rare Earth
Materials
$ 337.60
$ 320.56
T46 Aids Export Initiatives: In an effort to strengthen the American economy, the National
Export Initiative (NEI) aims to double American made exports by the end of 2014. In 2012, U.S.
exports totaled $2.2 trillion, and as a share of GDP were 13.9%. In 2012, agricultural exports
reached a record $145.4 billion- an increase of 38% from 2011, which helped to support more
than 1 million agricultural related jobs. In conjunction with the NEI, the Washington Export
Initiative (WEI) targets innovative, high-leverage projects to help double Washington State
exports by the end of 2014. To date, 1,038 new-to-export companies have been assisted in some
4
“Economic Impact Report.” Completed by economist John Martin. Available at: http://www.portseattle.org/Supporting-OurCommunity/Economic-Development/Pages/default.aspx.
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Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
capacity by the WEI. With approximately 8,500 companies now exporting from Washington
State, the WEI remains on track to increase that number to 10,500 by 2015. The Port and T46 are
central to these export initiatives, particularly for supporting initiative goals by providing
efficient, modern shipping capacity for agricultural commodities.
Figure 11: Hay, one of the Port’s Largest
Exports, Being Loaded into Containers
Figure 12: Container Transport
Increased Competition from Canadian Ports: The Port of Seattle vies with numerous ports
throughout North America for market share in the United States-Asia trade lane, especially the
Canadian ports of Vancouver and Prince Rupert. As described above, up to 70% of cargo
moving through the Port of Seattle is discretionary. If the Port does not undertake investments
necessary to stay competitive, increased development by Canadian ports threatens to continue to
draw cargo and American jobs away, as well as reduce vessel and container capacity for
American exports. Prince Rupert has aggressive growth plans for a two-stage expansion that
would allow them to handle 2 million TEUs by 2020 and 4-5 million TEUs in subsequent years.
In order to realize this ambitious growth strategy, Prince Rupert must rely on the continued
diversion of cargo from U.S. ports.
While the Port of Seattle has a number of intrinsic advantages by virtue of its physical location, it
must provide facilities at a world class level to remain competitive. The Port of Seattle is a
naturally deep water port and the closest U.S. port to Asia, which enables fast access to key
markets in the United States, Mexico, and Canada. Despite these natural advantages, vessel
capacity constraints have become a key factor limiting Washington export growth potential.
From 2009 to 2011, Seattle was the nation’s number one export gateway for refrigerated
container exports, which tend to be high-value goods such as vegetables, apples, and seafood.
Yet capacity constraints have become a key factor limiting growth for these leading Northwest
exports. The T46 Modernization Project is necessary to maintain Seattle’s status as a preferred
port of call for ocean carriers and to enable two larger vessels to call at T46 simultaneously.
These enhancements will result in greater vessel capacity and container availability and reduce
the upward pressure on export shipping prices.
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Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
Capabilities as a Strategic Port: In the event that the Ports of Olympia and Tacoma are
incapable to provide services to the U.S. Military for the transportation of military cargo, the Port
of Seattle has the capacity to move that cargo through its facilities, making it a critical link in the
logistics transfer to military forces overseas. The U.S. Coast Guard Area Maritime Security
Committee’s Area Security Plan has identified the Port of Seattle as a critical asset for the
movement of all goods and services throughout the Puget Sound region. The military provides
both national defense and response to domestic natural disasters. Both types of missions rely
heavily on national surface transportation infrastructure to fulfill those support requirements. The
Port’s Project will help meet these challenges.
Port Helps Create Broad Based Prosperity: The T46 Modernization Project is poised to create
and maintain jobs by ensuring operations and services remain competitive. Much of the Port’s
primary agricultural hinterland meets the definition of “Economically Distressed Areas” from
Section 301 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3161). T46
ships high volumes of commodities from these economically distressed areas, including hay,
vegetables and other agricultural products.
Figure 13: Federally-Designated Economically Distressed Areas Served by Port
Modernization
Opportunities for Community Organizations & Disadvantaged People: The Port of Seattle’s
Office of Social Responsibility (OSR) supports the Port’s commitment to the local community
and ensures port business activities are conducted within a framework of fairness, inclusion,
openness, and equal access to economic opportunity. These programs include:
•
Small Business Program: The Port’s Small Business Program through OSR is designed
to develop mutually advantageous professional relationships with small businesses,
which include minority and woman owned businesses. Under this umbrella program, the
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Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
Office of Social Responsibility manages three main sub-programs: the Small Contractors
and Suppliers (SCS) Program, the Disadvantaged Business Enterprise (DBE) Program,
and the Small Business Outreach Program. For example, once certified as an SCS, firms
can benefit from vendor training and continuing education workshops, as well as
procurement incentives.
Figure 14: Port of Seattle Workers
Figure 15: T46 Project Creates Good Jobs
•
Disadvantaged Business Enterprise Program (DBE): The Port of Seattle’s Federal
Disadvantaged Business Enterprise (DBE) Program ensures that DBEs and other small
businesses have an equal opportunity to receive and participate in U.S. Department of
Transportation (DOT)-assisted contracts. Port policies ensure non-discrimination in the
award and administration of DOT-assisted contracts, create a level playing field on which
DBEs can compete fairly, and assist the development of firms in order to compete
successfully in the marketplace outside the DBE Program.
•
Small Business Outreach Program: The Port of Seattle’s Outreach Program not only
interacts with individual small businesses, but develops systematic outreach efforts and
partnerships to those communities of color, local organizations, chambers, and
educational institutions that support small business development efforts. These efforts
include StartZone, an adjunct of the Southwest King County Economic Development
Initiative (SKCEDI), a cooperative effort that the Port is involved in to enhance
investment and employment opportunities in the area. StartZone works to serve the
business development needs of immigrants, minorities, women and disabled-owned
current and potential businesses.
•
Workforce Development: The Port of Seattle supports workforce development in the
construction industry by ensuring training opportunities for apprentices on all of its large
public works projects. On the T46 Project, contractors will be required to have
apprentices perform at least 15% of the overall craft hours, including goals that at least
15% of apprentice hours go for minority apprentices and 10% for female apprentices.
13
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
3. Livability
Ensuring public benefits from its waterfront, including providing public access to the waterfront,
was one of the founding missions of the Port of Seattle when it was established in 1911.
South Park is an ideal location for offsetting the loss of public waterfront access due to container
terminal operations at T46 because it is one of the Seattle communities most directly impacted
by maritime industrial operations. South Park has been impacted by pollution, civic neglect and
economic hardships stemming from decades of heavy industrial uses along the Duwamish River
on which it is located. The Terminal 117 brownfield, which the Port “inherited” when it bought
the terminal in 2000, has contributed to this problem and has been an impediment to economic
development. As Part of the T46 Modernization Project and in partnership with local
stakeholders, the Port is working to redevelop this area.
.
Figure 16: Terminal 117 Site Overview
14
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
The South Park neighborhood is one of the most diverse in Seattle and has the highest density of
children in the city. Unfortunately, it also has the lowest ratio of parks and open-space. The
South Park community has expressed interest in establishing multi-functional shoreline access
features on the site in conjunction with the habitat restoration. The features will include ADAaccessible walkways and kayak launch, viewpoints, integrated artwork, a "hands-on habitat area"
for children, and grated surfacing to allow light transmission and better environmental
performance. Cultural, historical and environmental interpretive elements will be installed under
a covered structure at the end of the pier. This will help create an inviting destination in the
business district, cultivating creative thought and placemaking, while also helping the
community to identify with a changing landscape on a cultural level.
4. Environmental Sustainability
In addition to the improvements at T117 described above, the T46 Modernization Project will
have a number of positive environmental impacts. The Port of Seattle’s Century Agenda
illustrates the Port’s strong commitment to environmental stewardship by setting a goal for the
Port to be the greenest, most energy efficient port in North America. The Port’s many
environmental programs are designed to provide real benefits to the community and a
competitive edge for the Port’s customers.
Reduced Need for Dredging: T46 is a natural deepwater terminal that does not require regular
maintenance dredging. As such, it is an asset that can help the country minimize the
environmental impacts of international trade.
Stormwater Improvements: With the stormwater upgrades as part of this project, stormwater
will be monitored and pH will be adjusted to allow for discharge into Elliott Bay to meet current
Department of Ecology benchmark levels. The treatment system will be combined with
conventional end-of-pipe best management practices to reduce source pollution. The proposed
stormwater treatment system will reduce current copper concentrations, fecal contamination and
zinc, as well as sediment and trash by up to 8 to 12 times the current concentrated loads. The
upgrades will reduce pollution and help the survival of listed endangered species, particularly
salmon, rockfish, and orca.
Dock Rehab Saves Environmental Damage Later: In conjunction with stormwater
improvements, the dock rehabilitation component of the T46 Modernization Project will also
yield substantial long term environmental benefits. By performing rehabilitation on deteriorated
sections of the dock now, the service life of existing infrastructure will be prolonged, thereby
avoiding the more environmentally disruptive impacts associated with structure removal and
replacement. As with all construction projects at the water’s edge, the methods, materials, and
practices utilized during project construction have the potential to negatively impact the aquatic
environment. To mitigate these potential impacts, best practices will be implemented during
project construction to avoid and minimize potential negative environmental effects.
Larger Ships Calling Will Allow For Reduced Emissions: The Port of Seattle’s efforts in
reducing air emissions associated with maritime activity has helped achieve reductions of 5% to
38% on a range of pollutants since 2005. The T46 Modernization Project will positively
15
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
contribute to this goal by allowing larger ships to call at the terminal. The Clean Cargo Working
Group has demonstrated that larger vessels achieve better carbon emissions per TEU. By and
large, today’s larger vessels are the newest and cleanest vessels in a carrier’s fleet. All ships
built after January 1, 2012 must have Tier 2 engines, which emit significantly less NOx than
older Tier 1 vessels.
T46 is a Green Gateway: For carbon Figure 17: Port of Seattle is a Green Gateway Due to
emissions per TEU, Seattle is the best
Lower Emissions to U.S. Destinations
performing port on the U.S. West Coast
for intermodal transport of goods due to
its geographic proximity to Asia and
excellent existing rail linkages. A
comparison of the emissions from
oceangoing container ships and
domestic rail service indicates that
marine transportation is 32% to 55%
more efficient than rail transportation at
typical operating conditions. Thus,
shipping via the Port of Seattle under
typical operating conditions (design
service speed and 90% utilization)
provides the lowest overall carbon
emissions per TEU from all 6 Asian
departure ports evaluated (Shanghai,
Honk Kong, Singapore, Tokyo, Busan, and Ho Chi Minh). 5
The carbon footprint advantages of West Coast ports can be quite significant. For example,
carbon emissions expressed in terms of emissions per TEU moved are approximately 29% lower
when moving a container between Shanghai and Chicago via the Port of Seattle on a 8,500 TEU
container ship, as compared to moving the same container between Shanghai and Chicago via
the Panama Canal and the Port of New York on a 8,500 TEU Panamax container ship. Although
Prince Rupert has smaller ocean distances than Seattle, its correspondingly longer rail distances
to inland destinations offset the lesser ocean emissions. Nonetheless, the Port needs to maintain
and upgrade capacity to be able to service these ships for environmentally friendly shipping
5
In the case of a 8,500 TEU container ship, the vessel transport efficiency at 24 kts is 0.09 kg CO2e / TEU-km. Reducing the
speed to 17 kts equates to a new transport efficiency of 0.05 kg CO2e / TEU-km. The speed power curves indicate that load
factors on the propulsion engine can be halved from their 80% values at typical transit speed (~24-25 kts) to 40% by reducing
speed to 19-20 kts. The results show that within the speed range investigated, regardless of the vessel size, Seattle generally
remains the port with the smallest footprint per TEU for deliveries to Chicago (the destination city with shortest rail distance
from Seattle). The only exception to this is for Singapore departures going through New York / New Jersey and the Suez Canal
at the speeds below 20 kts for 8,500 TEU ships.
Source: Carbon Footprint Study for the Asia to North America Intermodal Trade, Prepared by Herbert Engineering Corp., June
2011; see also http://www.portseattle.org/Cargo/Green-Gateway/Pages/default.aspx.
16
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
routes for continued viability. The T46 Modernization Project will allow the Port of Seattle to
accommodate the largest, cleanest vessels in the global fleet today, and will offer carbon
footprint advantages to a larger volume of cargo.
Environmental Partnerships: Improving stormwater management in Puget Sound is one of the
eight tenants of the Puget Sound Partnership’s 2020 Action Agenda. The Puget Sound Partnership
has received millions of dollars from the federal government since being created by the
Washington State legislature to help restore Puget Sound, and is part of the Environmental
Protection Agency’s (EPA) National Estuary Program. Federal partners of the Puget Sound
Partnership activities include Federal Highway Administration, Federal Transit Administration,
National Oceanic and Atmospheric Administration, National Park Service, National Resource
Conservation Service, Navy Region Northwest, U.S. Army, U.S. Coast Guard, U.S. Fish and
Wildlife Service, U.S. Geological Survey and the U.S. Forest Service. The reduction of
stormwater pollution will help restore species listed under the Endangered Species Act.
The Project will also support opportunities for ports to make improvements to air quality. In 2008,
The Port of Seattle, along with The Port of Tacoma and Port Metro Vancouver, implemented the
first international ports clean air program. Known as the Northwest Ports Clean Air Strategy, this
collaborative program seeks to: reduce maritime and port-related air quality impacts, reduce
contribution to climate change and help the Puget Sound Airshed continue to meet air quality
standards and objectives. Agency partners include U.S. Environmental Protection Agency, Puget
Sound Clean Air Agency, Washington Department of Ecology, and Environment Canada.
5. Safety
Figure 18: Argo Connector Road Current and Proposed Configuration
Each component of the Project will improve safety in the Port. The Argo Connector will
eliminate the need for trucks to cross three lanes of traffic in a short distance thereby greatly
reducing accident danger. Replacing the pavement on the T46 apron will address the safety
concerns of union workers who currently have to navigate pot holes and buckling pavement. The
T46 Crane rail extension will allow a greater distance between cranes, creating a safer work
environment. New central lighting will allow workers to control lighting without having to go
onto the terminal and operate several separate lighting controls.
17
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
6. Project Readiness
The T46 Modernization Project will be able to meet all local, state, and federal requirements by
June 30, 2014. More specifics on the permits approvals is listed below in §V. Planning and
Approvals. The Project is technically and financially feasible as detailed below.
Figure 19: Stormwater System Installation, Repaving and Dock Rehab at T46
Technical Feasibility of the Project: T46 rehab work includes a number of components:
•
T46 Dock Rehab: The Project will rehabilitate container berth pile caps and deck panels
that have deteriorated with the passage of time by removing corrosive concrete, repairing
rebar and recasting with new cement “grout.” An innovative pilot project described in
greater detail in §IV.B Innovation will be taken to scale in the T46 Modernization Project.
The T46 Project would rehabilitate the dock’s deck panels and pile caps at the two main
containership berths at T46 (approximately 2,440 lineal feet of dock). The work will
include:
o Remove deteriorating and corrosive concrete from pile caps and deck panels.
o Clean and recoat or replace corroded rebar.
o Recast with grout to preserve and extend the life of these assets.
•
Innovative Stormwater Improvements: Innovative stormwater infrastructure
improvements will be incorporated in the facility designs to include new treatment
system infrastructure, reconfiguration of site subsurface stormwater conveyance systems,
and upgrading of vehicle and equipment wash facilities. Existing and state of the art
18
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
filtration and biological treatment methods will be considered for innovative
implementation at a much larger scale than previously implemented at a marine terminal
facility.
•
Feasibility of Other Components: 435,000 square yards of the terminal apron and
container yard will be repaved. The Argo Connector road will be a new south-to-eastbound
connection which will grade-separate truck traffic heading to the Union Pacific Railroad’s
Argo Yard from SR-99. The Crane Rail Extension component will upgrade approximately
200 lineal feet at the north end of the existing dock apron at T46 to increase load capacity
and allow 100-foot gauge cranes to work the full length of the terminal. At T117, the Port
will construct nine acres of restored fish and wildlife habitat on and around the T117 site.
Engineering and design studies have been completed and there are no technical challenges
associated with these components. More detailed engineering information on these
components is available on the project website.
Financial Feasibility: The T46 has a viable funding package that is already in place except for the
TIGER award. Port funds are already planned for the Port’s cost match of the Project. User
generated fees will pay for ongoing operations and maintenance at the Port and the Port’s financial
position is strong: The Port’s 2012 auditor’s report noted that 2013 operating revenues are
expected to be 2.2% higher due to higher container lease revenue and higher occupancy at
industrial properties. The Port had $6.61 billion in assets and net position of $2.96 billion at the
end of 2012. 6 The Port uses these capital assets to provide services to its tenants. As a result, these
assets are not available for future spending. The Port will spend contingency reserves if necessary
to ensure completion of the Project. A detailed project budget is below in Figure 19.
6
See “Comprehensive Financial Report 2012” Available at: http://www.portseattle.org/About/Financial-Info/InvestorInformation/Pages/Financial-and-Disclosure-Statements.aspx
19
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
Figure 20: Project Cost Broken Down by Component
TIGER PROJECT COMPONENTS
T46 PAVING
Phase
Design
Design Subtotal
Construction
Contracted
Staff
Overhead
Contracted
Staff
Overhead
Construction Subtotal
Total
Design
STORMWATER
Design Subtotal
Construction
Contracted
Staff
Overhead
Contracted
Staff
Overhead
Construction Subtotal
Total
Design
T46 DOCK REHAB
Design Subtotal
Construction
Contracted
50% Staff
50% Overhead
CRANE RAIL EXTENSION
Design Subtotal
Construction
Construction Subtotal
Total
$
$
$
$
$
$
$
$
$
$
$
$
$
2013
544,924
115,000
87,400
747,324
747,324
2013
614,720
317,500
195,245
1,127,465
1,127,465
2013
461,832
151,250
111,013
724,095
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2014
583,424
137,000
94,614
815,038
1,305,503
35,500
24,531
1,365,535
2,180,572
2014
21,280
21,280
8,823,870
317,500
190,105
9,331,475
9,352,755
2014
538,804
226,875
166,519
932,198
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
-
$
$
$
$
$
$
$
$
$
932,198 $
2014
$
$
$
$
$
$
-
$
$
-
Contracted
50% Staff
50% Overhead
$
$
Construction Subtotal
Total
Design
$
$
$
$
$
$
$
$
$
$
724,095 $
2013
Contracted
50% Staff
50% Overhead
Contracted
50% Staff
50% Overhead
$
$
2015
38,500
38,500
3,280,172
188,050
128,798
3,597,019
3,635,519
2015
2015
538,804
188,774
114,217
841,795
6,609,971
188,774
114,217
6,912,961
7,754,756
2015
453,360
167,200
114,380
734,940
2016
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
734,940 $
2017
3,037,951
162,050
107,778
3,307,779
3,307,779
2016
2016
$
$
$
$
$
$
$
$
$
7,711,632
251,410
127,740
8,090,782
8,090,782
2016
$
$
$
$
$
$
3,159,353
142,900
84,160
3,386,413
3,386,413
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
3,037,951
162,050
107,778
3,307,779
3,307,779
2017
2017
2018
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
7,711,632
251,410
127,740
8,090,782 $
8,090,782 $
2017
$
3,159,353
142,900
84,160
3,386,413 $
3,386,413 $
2019
2,734,156
42,150
18,232
2,794,539
2,794,539
2018
2018
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
2,278,463
39,200
17,160
2,334,823
2,334,823
2019
2019
-
$
-
-
$
$
-
2018
2019
-
$
-
-
$
$
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
TOTAL
1,166,848
252,000
182,014
1,600,862
15,674,198
629,000
404,276
16,707,474
18,308,336
TOTAL
636,000
317,500
195,245
1,148,745
8,823,870
317,500
190,105
9,331,475
10,480,220
TOTAL
1,539,440
566,899
391,749
2,498,088
22,033,235
691,593
369,697
23,094,525
25,592,613
TOTAL
453,360
167,200
114,380
734,940
6,318,705
285,800
168,320
6,772,825
7,507,765
20
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
Figure 20: Cost Broken Down by Component (Cont’d)
Design
ARGO
Design Subtotal
Construction
Contracted
100% Staff
100% Overhead
Construction Subtotal
Total
Design
T117 PUBLIC ACCESS
Contracted
100% Staff
100% Overhead
Design Subtotal
Construction
$
$
$
$
$
$
$
$
$
$
$
$
742,000 $
2013
$
$
$
$
$
$
-
Contracted
100% Staff
100% Overhead
Contracted
100% Staff
100% Overhead
Construction Subtotal
Total
2013
387,000
158,000
197,000
742,000
$
$
2014
387,000
252,000
264,000
903,000 $
$
$
$
$
903,000 $
2014
181,000
85,500
107,500
374,000 $
$
$
$
$
374,000 $
2015
2,918,400
200,000
135,000
3,253,400
3,253,400
2015
2016
$
$
$
$
$
$
$
2,214,135
85,500
107,500
2,407,135 $
2,407,135 $
2017
2,918,400
105,000
68,000
3,091,400
3,091,400
2016
$
$
$
$
$
$
2018
-
$
$
$
$
$
$
2017
2019
-
$
$
$
$
$
$
2018
2019
-
$
-
$
-
$
-
-
$
$
-
$
$
-
$
$
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
TOTAL
774,000
410,000
461,000
1,645,000
5,836,800
305,000
203,000
6,344,800
7,989,800
TOTAL
181,000
85,500
107,500
374,000
2,214,135
85,500
107,500
2,407,135
2,781,135
Assessment of Project Risks and Mitigation Strategies: The Port has carefully considered risks associated with the Project. The
comprehensive condition assessments and substantial amount of engineering work accomplished to date reduce the potential for
unexpected technical costs to arise as the project advances. The T46 Modernization Project will be straightforward as the Port already
owns all property involved and new ground will not be broken. As described in §V. Planning and Approvals below, the permitting
process is expected to be straightforward. Both capital and operations and maintenance costs and revenues have been developed with
appropriate cost escalations and conservative assumptions to assure minimal risk. Should any unexpected issues arise, the Port has an
experienced and dedicated team with experience in construction, maintenance, operations, accounting and financial oversight.
21
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
Figure 21: T46 Modernization Project Schedule
Quarter:
Q1
2013
Q2 Q3 Q4 Q1
2014
Q2 Q3
Q4
Q1
2015
Q2 Q3
Q4
Q1
2016
Q2 Q3
Q4
Q1
2017
Q2 Q3
2018
Q4 Q1 Q2 Q3
Q4
Q1
2019
Q2 Q3
Q4
T46 dock rehab
Design
Permits
Construction
Direct Jobs
Funding Source*
T46 Stormwater
Improvements
Design
Permits
Construction
Direct Jobs
Funding Source*
T46 Paving
Design
Permits
Construction
Direct Jobs
Funding Source*
T46 Crane rail extension
Design
Permits
Construction
Direct Jobs
Funding Source*
T-117 Shoreline Access
Design
0
0
0
0
0
0
0
0
22
22
22
22
26
26
26
26
26
26
26
26
0
0
0
0
0
0
0
0
P
P
P
P
P
P
P
P
PT
PT
PT
PT
PT
PT
PT
PT
PT
PT
PT
PT
0
P
0
P
0
P
0
P
0
P
40
PT
40
PT
39
PT
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9
8
10
12
12
11
11
11
11
10
10
11
11
10
8
10
10
8
7
8
8
7
P
P
P
P
P
P
P
PT
PT
PT
PT
PT
PT
PT
PT
PT
P
P
P
P
P
P
P
P
P
P
P
P
0
0
P
0
P
0
P
0
P
0
P
0
P
0
P
0
P
0
P
0
P
0
P
10
PT
11
PT
11
PT
11
PT
10
PT
11
PT
11
PT
11
PT
0
0
0
0
0
0
0
0
22
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
Permits
Construction
Direct Jobs
Funding Source*
Argo Roadway Separation
Prelim Design
Permits
Construction
Direct Jobs
Funding Source*
Total Direct Jobs
Total Funding Source
0
0
0
0
P
0
P
0
P
0
P
0
P
7
P
8
P
8
P
7
P
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
P
0
P
0
P
0
P
0
P
0
P
0
P
0
P
0
P
37
P
0
P
39
PT
0
P
39
PT
0
P
38
PT
10
P
49
PT
10
P
50
PT
11
P
52
PT
10
P
49
PT
9
P
54
PT
10
P
57
PT
10
P
57
PT
10
P
56
PT
0
0
0
0
0
0
0
0
0
0
0
0
45
PT
47
PT
47
PT
46
PT
8
P
8
P
8
P
8
P
7
P
8
P
8
P
7
P
* T=TIGER (U.S. Department of Transportation)
P= Port of Seattle
23
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
B. Innovation
The T46 Modernization and its planning includes a number of innovative components.
“Triple Bottom Line” Approach to Port Improvements: The Port’s Century Agenda builds on
the investments of the past century with a visionary look forward to emerging challenges and
engages the broader community in helping to shape a common vision for how the Port of Seattle
can best serve the public interest. One of the Century Agenda’s tenets is the ability to measure its
success against economic, social, and environmental indicators. This approach, referred to as the
“triple bottom line,” will contribute to a culture of excellence and innovation that serves the
public’s interest while providing a model for the overall community.
Dock Rehab While Maintaining Operations Offers Lessons: In the 1960’s, U.S. ports and
Naval facilities began constructing marine wharfs and piers using reinforced precast concrete
piles, cast-in-place pile caps and precast concrete deck panels similar to those located at T46.
However, beginning in 2011, the Port discovered deterioration in these structures at its marine
terminals. After consulting with several engineers and inquiring with other ports, the Port
recognized that others are experiencing similar deterioration of their structures, but that little was
known about how to accurately determine and evaluate the rates of deterioration. As a result, in
2012, the Port invested $1.5 million in a pilot project to 1) better evaluate deterioration without
destructive testing and 2) determine whether rehabilitation of the docks was worthwhile, given
the required time and cost.
Ultimately, the 2012 pilot project successfully rehabilitated four pre-cast pile caps. The
proposed TIGER project at T46 would undertake similar work, but on a far larger scale. The
Port recognizes that commercial and defense terminals across the nation need to continue
operations while concurrently undertaking rehabilitation of deteriorated docks and wharves.
Thus, the Port has developed a cutting edge phasing approach to undertake repairs while the
berth remains active for container cargo operations. The lessons from the T46 Modernization
Project will be shared and provide a valuable model for other marine facilities on how to
effectively correct emerging deterioration.
Stormwater Improvements: The stormwater treatment system to be installed at T46 is unique.
At 87 acres, it will be the largest application of this type of stormwater treatment to date. It will
make stormwater runoff from the pier some of the cleanest in the nation.
24
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
C. Partnership
The T46 Modernization Project will provide benefits to a wide variety of project stakeholders
and leverage previous and planned investments. The Argo Connector road project is a publicprivate partnership; the Port is working together with the City of Seattle, the Washington State
Department of Transportation, Union Pacific Railroad, and ProLogis, a global industrial real
estate company. The Port has collaborated with community groups in the South Park
neighborhood on the T117 shoreline access component. The T117 project also involves
collaboration with the Muckleshoot Indian Tribe Fisheries Commission to improve access to
treaty-reserved fishing areas. Construction work will engage a variety of minority, disadvantaged
and small businesses. Project supporters contributing funds to local match include:
•
•
T117: $398,000 from State of Washington, from the Community Economic
Revitalization Board (CERB))
Argo $4.35 million from State of Washington (Freight Mobility Strategic Investment
Board); $1.25 million from Union Pacific Railroad
The individuals and organizations below have expressed their support for the T46 Modernization
Project.
Terminal 46 Modernization Project Supporters
Suzan DelBene, Representative,
Patty Murray, Senator
Maria Cantwell, Senator
U.S. House
United States Senate
United States Senate
of Representatives
Adam Smith, Representative,
Dave Reichert, Representative,
Jim McDermott, Representative,
U.S. House
U.S. House
U.S. House
of Representatives
of Representatives
of Representatives
Freight Mobility Strategic
Puget Sound Regional Council
Seattle City Council
Investment Board
Union Pacific Railroad
King County Labor Council
Seattle Marine Business Coalition
North Seattle Industrial
Association
South Park Neighborhood
Association
Coalition for America’s Gateways
and Trade Corridors
Pacific Northwest Waterways
Association
Environmental Coalition of South
Seattle
Washington State Department of
Transportation
Pacific Merchant Shipping
Washington Council on
Association
International Trade
Yakima Valley Growers-Shippers
Wenatchee Valley Traffic
Washington Apple Commission
Association
Association
International Longshoremen's and
Washington State Potato
CREATE
Warehousemen's Union Local 19
Commission
Letters and full list of supporters is available on the project website. The Port often partners with other
local businesses and community organizations, and can provide more letters upon request.
Seattle Chamber of Commerce
25
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
D. Results of Benefit-Cost Analysis
Figure 22: Container Ships Serving Terminal 46
The Project will result in a benefit of over $10.3 billion over a 20 year period ($5.1 billion at 7%
discount rate, $7.4 billion at 3% rate). The largest gain compared to the no-build scenario is $9.6
billion in benefits projected by an independent economist if discretionary cargo were to be
diverted from the Port of Seattle to Canadian ports. Significant benefits will also be realized
from rehabilitation of T46, which allows for continuous operations, versus shutting down the
terminal for a few years to construct a new one. Other monetized benefits included in the BCA
are gains from increased shipping capacity from an additional crane, as well as benefits from the
value of reduced emissions, reduced accidents and reduced wait time from the Argo access road.
Department of Transportation and Office of Management and Budget guidance and values were
used for all calculations. A more detailed explanation of the methodology and underlying values
for each calculated benefit is included in each tab of the Project’s Benefit Cost Analysis.
Current
Status/Baseline
& Problem to be
Addressed
Executive Summary for Benefit Cost Analysis
T46 Dock: Current dock has corroding pile caps to support the dock and surface in a
state of disrepair. Stormwater currently runs off into the water without proper
treatment. Current facilities do not allow for unloading of two large ships
simultaneously.
Argo: Trucks using SR-99 to enter the Union Pacific Argo rail yard requires trucks to
weave through three lanes of traffic in 1,200 feet causing delays and accidents.
T117 Shoreline Access: Brownfield impacted by pollution and civic neglect.
26
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
T46 Dock: Corroding will be repaired while keeping the Port open through
innovative process. Old crane will be removed and dock reconfigured to allow for
simultaneous unloading of two large ships. State of the art stormwater treatment
capabilities will capture and treat stormwater.
Changes to
Argo: A new eastbound truck connection under SR-99 will accommodate truck trips
Baseline/
to the Union Pacific Rail Road Company's Argo Yard from the east. This new road
Alternatives
eliminates the use of SR-99 as an access point and creates a one-way eastbound
roadway connecting to East Marginal Way on each side of the SR-99 mainline.
T117 Shoreline Access: Provide public access to 13.8 acres of restored fish and
wildlife habitat.
T46 Dock: The rehabilitated dock will allow the Port to remain competitive with
Canadian ports and preserve jobs. Regional shippers will be able to economically
ship their projects. The Port will be able to maintain and increase its cargo handling
capability, leveraging existing infrastructure. The community will benefit from
Types of Impacts cleaner air and water.
Argo: Reduced congestion as well as reduction idling and emissions on East
Marginal Way. Increased intermodal access due to direct access to Argo yard from
Port terminals. Exclusion of truck traffic from SR-99 and elimination of dangerous
traffic weave, causing marked reduction in accidents.
T46 Dock: The region and nation will benefit from increased shipping capacity and
the jobs it supports. Workers will benefits from safer facilities. Residents will benefit
Population
from the cleaner water in Puget Sound.
Affected by
Argo: Drivers who will no longer face accidents and wait time. The community
Impacts
benefits from emission reductions and improved safety.
T117 Shoreline Access: The community surrounding the T117 site, one of the most
diverse in Seattle, will enjoy expanded recreation and access to wildlife.
T46 Dock: Increased shipping capacity at the Port and surrounding region. The
impacts are quantified in terms of direct, induced and indirect jobs, personal
income, direct business revenue, and state and local taxes. The Port will be able to
remain open during rehabilitation. In addition to montized benefits included in the
BCA, environmental benefits will result from reductions in emissions when goods
are shipped through Seattle and not other ports because of lower total emissions
Economic
when shipping to destinations throughout the U.S.
Benefits
Argo: Economic benefits result from wait time reductions, accident reductions and
emissions reductions.
T117 Shoreline Access: The Project will provide economic benefits in the form of
cleaner water and increased business activity in the area, but these benefits have
not yet been calculated and thus are in addition to the benefits calculated in the
BCA.
The Project will result in benefits of $10.3b over a 20 year period. This is in addition
Summary of
to benefits which are not included in the BCA from T117 area development,
Results
increased T46 dock safety, and emissions reductions from shipping through Seattle.
*All values given indicate projects over 20 year period. No Build scenario assumes diminished capacity as
Port facilities fall into disrepair and congestion on roads continues unabated. More detailed information
included in full T46 Modernization Cost Benefit Scenario on the project website.
27
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
V. Planning Approvals and NEPA
The T46 Modernization Project improvements are the result of a comprehensive planning
process that identified upgrades needed to enable the Port to remain viable into the 21st century.
The planned work is similar to previous upgrades and modifications at other Port terminals.
Those past projects presented no extraordinary permitting issues or deviations from planned
schedule. Because the T46 upgrades will not be breaking new ground, but rather improving
existing impacted areas, the permitting process is expected to be straightforward. All approvals
for Terminal 46 Modernization are in process and are expected to be finalized before June 2014.
The information below outlines the permits and timelines for T46 Modernization Project
components, the status of the permits and their estimated date of completion.
•
T46 Dock Rehab, Stormwater Improvements, Paving and Crane Rail Extension:
Preliminary research and documentation for permit applications has been completed.
This documentation will be finalized and submitted as a single project for purposes of
permitting and environmental review. The NEPA environmental assessment is expected
to result in a Finding of no Significant Impact (FONSI) by February 2014. The
Washington State Environmental Policy Act (SEPA) environmental checklist is also
expected to result in a Determination of Non-Significance (DNS) in February 2014.
•
Argo Yard Component: Environmental review under the State Environmental Policy Act
(SEPA) was completed as an addendum to the East Marginal Way Grade Separation
Project environmental impact statement. No review under NEPA has been completed,
but could be completed within four months if required. Applications for a street use
permit were submitted in May 2013. A grading permit will be submitted in June
2013. Approvals for all permitting are expected by September 2013.
•
T117 Shoreline Access: Federal and state permit applications are expected to be
submitted by July 1, 2013 with approvals by December 31, 2013. Applications for local
land use and building permits are expected to be submitted by June 15, 2013 with
approvals expected by December31, 2013.
In addition to the NEPA and other environmental permits discussed above, the T46
Modernization Project will obtain the permits and approvals listed below.
28
Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
Figure 23: T46 Modernization Required Permits and Timeline
Permit Required
Work in Navigable
Waters (Section 10
Permit)
Section 7 Endangered
Species Act (ESA)
consultation
Agency
USACE (Lead)
EPA, NMFS,
USFWS
(consultation)
Tribes
(concurrence)
National
Marine
Fisheries
(NMFS)
US Fish and
Wildlife
Services
(USFWS)
Section 106 review
Dept of
Archaeology
and Historic
Preservation
(DAHP)
Environmental
Protection Agency
(EPA) consultation
EPA
Tribal Concurrence
Hydraulic Project
Approval (HPA)
Muckleshoot,
Suquamish
Tribes
Washington
State Dept of
Fish and
Wildlife
(WADFW)
Water Quality
Certification
Washington
State Dept of
Ecology
(DOE)
Coastal Zone
Management (CZM)
Washington
State Dept of
Description/ Scope
Status
Preliminary Joint
For work in, over, or
Aquatic Resource
under navigable
Permit Application
waters of the United (JARPA) materials
States
prepared for first
phase of project
Will require
submission of
Biological Evaluation;
Effect of actions on
Previous Biological
threatened or
endangered species or Evaluations will be
referenced and
their critical habitat
submitted with
updated information
A historic property or
cultural resource
survey will be
Effect of actions on
prepared; Very likely
historic properties
not considered a
historic or cultural
property
Effect of actions on
water quality and
Significant information
contaminated
available to EPA
sediments
Effect of actions on
Preliminary
usual and accustomed
assessment done
treaty fishing rights
For work within
waters of the state
Work will comply with
state water quality
standards. Condition
become conditions of
the Federal permit
Project is consistent
with Washington's
Estimated
Completion
Date
4/1/14
4/1/14
4/1/14
4/1/14
4/1/14
Preliminary JARPA
materials being
prepared
4/1/14
Preliminary JARPA
materials being
prepared
4/1/14
Preliminary JARPA
materials being
4/1/14
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Application to the U.S. Department of Transportation
Fiscal Year 2013 TIGER Grant Program
Federal Consistency
Shoreline Substantial
Development Permit
Master Use Permit,
Shoreline
Building Permit
Ecology
(DOE)
Coastal Zone
Management Program
(WCZMP) to the
"maximum extent
practicable"
City of Seattle Required for
development of
Dept of
Planning and facilities within 200
Development feet of the waters of
state
(DPD)
City of Seattle Establish consistency
of development and
Dept of
Planning and use with shoreline
Development overlay of the city land
use code
(DPD)
City of Seattle
Establish consistency
Dept of
Planning and with local building
Development codes
(DPD)
prepared
Internal preliminary
assessment done
4/1/14
Internal preliminary
assessment done
4/1/14
No submission until
90% of design
completed
9/1/14
NEPA finding of Finding of no Significant Impact (FONSI) is expected in February 2014
VI. Federal Wage Rate Certification
The Project will comply with all federal wage requirements contained in subchapter IV of
chapter 31 of title 40, United States Code. The Project website contains a copy of the signed
certification.
30