application to the us department

APPLICATION TO THE U.S. DEPARTMENT OF TRANSPORTATION

TRANSPORTATION INVESTMENT GENERATING ECONOMIC RECOVERY

PROGRAM FOR FISCAL YEAR 2014

In response to solicitation # DTOS59-14-RA-TIGER6

TERMINAL 46 MODERNIZATION PORT OF SEATTLE

Unlocking the Port’s Potential for the 21st Century

Project Title: Terminal 46 Modernization Project

Location: Seattle, WA

Application Type: Capital Grant

Applicant Organization Name: Port of Seattle

Type of Applicant: Port Authority

TIGER Funding Requested: $20 Million

PORT OF SEATTLE T46 MODERNIZATION

Unlocking the Economic Potential of the Port as a Hub for Business & Commerce

April 2014

A PROPOSAL SUBMITTED BY: THE PORT OF SEATTLE

PORT POINT OF CONTACT Mr. Ryan McFarland

Policy Analyst

Port of Seattle

206.787.3014

[email protected]

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. Primary Selection Criteria

1. State of Good Repair ....................................................................................................7

2. Economic Competitiveness .........................................................................................10

3. Quality of Life .............................................................................................................13

4. Environmental Sustainability ....................................................................................14

5. Safety ............................................................................................................................17

B. Secondary Selection Criteria

1. Innovation ....................................................................................................................17

2. Partnership ..................................................................................................................18

C. Results of Benefit-Cost Analysis .....................................................................................20

V. Project Readiness, Planning Approvals, and NEPA ...........................................................22

1. Project Readiness .........................................................................................................22

2. Planning Approvals and NEPA .................................................................................28

VI. Federal Wage Rate Certification ........................................................................................30

WEBSITE APPENDICES:

http://www.portseattle.org/Supporting-Our-Community/Regional-

Transportation/Pages/TIGER.aspx

Benefit Cost Analysis

Letters of support

Link to local and regional planning documents

Cost estimates

http://www.portseattle.org/Supporting-Our-Community/Regional-Transportation/Pages/TIGER.aspx


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: Port of Seattle Workers ........................................................................ 13

Figure 14: T46 Project Creates Good Jobs ............................................................ 13

Figure 15: Terminal 117 Site Overview ................................................................ 14

Figure 16: Port of Seattle is a Green Gateway ....................................................... 15

Figure 17: Argo Connector Road Current and Proposed Configuration................ 17

Figure 18: Container Ships Serving Terminal 46 .................................................. 20

Figure 19: Stormwater System Installation, Repaving and Dock Rehab at T46 ... 22

Figure 20: Project Cost Broken Down by Component ..................................... 24-25

Figure 21: T46 Modernization Project Schedule .............................................. 26-27

Figure 22: T46 Modernization Required Permits and Timeline ....................... 29-30

Application to the U.S. Department of Transportation Fiscal Year 2014 TIGER Grant Program

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Figure 1: T46 Modernization Projects and Existing Infrastructure


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I. Project Description

Port of Seattle’s Terminal 46 (T46) is a critical node in a trade corridor extending from Asia to

the U.S. West coast and into our nation’s heartland. 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 a 126% growth in exports from 2003-2013. Today, it remains one of our nation’s

premier trade infrastructure assets, serving 5 international shipping lines, over 237,000 container

moves and over 275,000 gate transactions annually. The 82-acre terminal has 2 50+ feet 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 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 99 (SR-99), allowing trucks to avoid cutting across three lanes of

traffic. Reduction of congestion also will enhance connections to employment centers for

thousands of commuters.

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-of-

the-art cargo handling facilities helped make Seattle the nation’s tenth busiest U.S. container port

in 2013, 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

1 At a 7% (NPV) assumption, total benefits of the project are $5.1b while a 3% NPV yields $7.3b in total benefits. See §IV.C BCA.


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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

efficient connections to two Class I domestic railways, as well as the I-5 and I-90 corridors.

International trade at the Seattle seaport reached $29 billion in 2013, including $3.2 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: Over 60% 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 14.5% in 2013. In the same period, Canadian ports grew from 9% to

14%, 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 nearly 6,200 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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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 and 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 $41.5 million in other jurisdictions' road

projects to leverage $428 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 Project Title Year

Completed Port of Seattle

Share (in 1,000’s)

Total Project (in 1,000’s)

WSDOT SR-519 Phase 1: Atlantic St Eastbound Offramp

2003 $7,050 $109,300

WSDOT SR-519 Phase 2: WB-off & Royal Brougham Way

2009 $5,500 $74,400

Seattle Spokane St. Viaduct 2009 $3,400 $168,500

Port/Seattle East Marginal Way Grade Separation

2012 $20,400 $52,700

Port/Seattle Clean Truck Project 2014 $476 $4,001

Port/Seattle East Marginal Way Grade Separation II

2014 $2,000 $2,000

Port/Seattle Argo Yard Truck Access 2014 $2,200 $7,800

Seattle Duwamish Intelligent Transportation System

2009 $500 $9,100

sub-total without Viaduct $41,526 $427,801

WSDOT AW Viaduct Replacement Project

2012-16 $281,000 $4,200,000

Total non-Port Assets $322,526 $4,627,801


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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, fishing terminals, 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 $46.1 million is committed to the project.

Every dollar of TIGER funding leverages approximately $2.31 of Port and non-Federal funding.

In total, the Port requests $20m to complete the project. The Port plans to spend TIGER funds

across three 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 $20m 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

Component Description Cost Non-Fed

Match TIGER

T46 Dock Rehab

Rehabilitate container berth pile caps and deck panels that have deteriorated with the passage of time by removing corroded concrete, repairing rebar and recasting with new cement “grout.” Completion of this project component is expected to preserve the existing use and capacity of T46’s two containership berths for a length of about 2,440 feet.

$24.6

$10.6 $14

T46 Stormwater Improvements

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 industry sustainability and improve conditions for aquatic life in an industrial environment. The Port will also upgrade the existing wash rack to meet existing stormwater standards.

$7.3

$7.3 $0

T46 Paving

Pave approximately 435,000 square yards of the terminal apron and container yard. The project will reduce wear and tear on equipment and improve safety. The Port will also install new central lighting controls to improve safety and energy efficiency.

$17.7

$14.7 $3


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Project Component

Component Description Cost Non-Fed

Match TIGER

T46 Crane Rail Extension

Upgrade approximately 200 linear 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 movement needed to load and unload two super post-Panamax ships simultaneously. To allow for the upgrade, Crane 54 will be removed to allow for effective configuration of the dock space.

$7.2

$4.2 $3

Argo Connector Road

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 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. This improvement also will improve connections to employment centers in downtown Seattle and the Duwamish Manufacturing and Industrial Center for tens of thousands of workers.

$6.7 $6.7 $0

T117 Public Shore Access Development

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, viewpoints, interpretive elements, a canoe launch and integrated public artwork. This project component serves as offset for development at T46.

$2.5 $2.5 $0

Total** These components work together to leverage existing infrastructure and make the Port viable and sustainable.

$66.1 $46.1 (70%)

$20 (30%)

* Numbers given in millions of dollars. Does not include overhead. See figure 20 for overhead costs. ** Sums of project component costs and matches differ from totals due to rounding.


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IV. Selection Criteria

A. Primary Selection Criteria

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.

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

survey of the T46 dock confirmed and expanded on prior survey findings regarding deterioration

Figure 5: Deck Panel and Pile Cap Deterioration at Terminal 46

Figure 6: Cross Section of Container Terminal Dock


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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, and other ports.

Figures 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 It is worth noting that with a deck elevation of 18

feet, T46 will not face inundation under any year 2050 sea level rise projections made by

credible sources. Statistical methods concerned with the coincidence of sea level rise, storm

surge and high tides do not suggest the need for mitigation measures until after 2050. Nevertheless, Port staff have identified enhanced storm water conveyance design concepts that

could be deployed for future storm surge events.

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 $32.8m investment in

rehabilitation of an existing dock structure would provide levels of service consistent with a

$304.5m 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

3Engineering-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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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.

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.1 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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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 12,000

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’s container terminals. 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.

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 2013, U.S.

exports totaled $2.3 trillion, accounting for 13.5% of GDP. Agricultural exports reached $144.1

billion, 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 increase Washington State exports by 35% by the end of 2014. To date, well over 1,000

4“Economic Impact Report.” Completed by economist John Martin. Available at: http://www.portseattle.org/Supporting-Our-Community/Economic-Development/Pages/default.aspx.

Figure 10: 2013 Export Commodities via Seattle (millions)

Commodity 2013 Value

Machinery $433.28

Paper, Paperboard $369.69

Preserved Food $362.23

Meat $337.64

Misc Grain, Seed, Fruit $328.47

Fish And Seafood $288.95

Dairy, Eggs, Honey, Etc $284.34

Edible Fruit And Nuts $275.14


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new-to-export companies have been assisted in some capacity by the WEI. With over 12,000

companies now exporting from Washington State, the WEI has already exceeded its goal of

helping to increase that number to 10,500 by 2015. The Port and T46 are central to these export

initiatives, particularly by providing efficient, modern shipping capacity for machinery and

agricultural products.

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, over 60% 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 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. For three out of the last

five years, 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 (Seattle

ranked fourth in 2013). 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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Capabilities as a Strategic Port: In the event that the Ports of Olympia and Tacoma are

incapable of providing 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.

Enhancing connections to centers of employment: The Argo Connector Road will facilitate

daily commutes for tens of thousands of workers by reducing congestion caused by merging

truck traffic along SR-99. SR-99 is a key economic corridor serving the Duwamish

Manufacturing and Industrial Center (MIC). Home to almost 60,000 jobs, the Duwamish MIC

provides the largest concentration of middle-class, family wage jobs in the Puget Sound region

and is one of the state’s top employment centers. In addition, SR-99 is one of two principal

corridors connecting lower income communities of South Seattle to Seattle’s downtown core.

Port Helps Create Broad Based Prosperity: The T46 Modernization Project is poised to create

and maintain jobs by ensuring operations and services remain competitive. T46 supports 3,200

jobs, including some of the highest-paying blue collar jobs in the nation. T46 also supports

additional jobs in agriculture-dependent communities throughout the Northwest by serving as an

export gateway for large volumes of hay, fruit, vegetables and other agricultural products.

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

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.

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.


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Figure 13: Port of Seattle Workers Figure 14: T46 Project Creates Good Jobs

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.

3. Quality of Life

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 affected 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.


14

Figure 15: Overview of Planned Improvements to Terminal 117 Site

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 ADA-

accessible 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.


15

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

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

emissions per TEU, Seattle is the best

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,

Figure 16: Port of Seattle is a Green Gateway Due to Lower Emissions to U.S. Destinations


16

Honk Kong, Singapore, Tokyo, Busan, and Ho Chi Minh City).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

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 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.

http://www.portseattle.org/Cargo/Green-Gateway/Pages/default.aspx


17

5. Safety

Figure 17: 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.

B. Secondary Selection Criteria

1. 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


18

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.

2. Partnership

The T46 Modernization Project will benefit a wide variety of project stakeholders and leverage

previous and planned investments. The Argo project is a public-private 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. Partnerships

involving stormwater and air quality are mentioned above under “Environmental Partnerships.”

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.

In just the past year, the Port’s vision for creating a top-quality public space has attracted funding

commitments and interest from Seattle Parks Foundation and the Trust for Public Land that will

enable expansion of public amenities and additional habitat restoration. Moreover, the City of

Seattle has announced its intention to develop green stormwater infrastructure and a pedestrian

path on adjacent right of way that will connect the site to the business district and other

neighborhood destinations.

Project supporters contributing funds to local match include:

• T117: $398,000 from State of Washington, from the Community Economic

Revitalization Board (CERB); $62,500 each from Trust for Public Land (pending) and

Seattle Parks Foundation.

• Argo $4.35 million from State of Washington (Freight Mobility Strategic Investment

Board); $1.25 million from Union Pacific Railroad


19

The individuals/organizations below have expressed support for the T46 Modernization Project.

Terminal 46 Modernization Project Supporters

Patty Murray, Senator United States Senate

Maria Cantwell, Senator United States Senate

Suzan DelBene, Representative, U.S. House

of Representatives

Adam Smith, Representative, U.S. House

of Representatives

Dave Reichert, Representative, U.S. House

of Representatives

Jim McDermott, Representative, U.S. House

of Representatives

Agriculture Transportation Coalition

American Association of Port Authorities

BNSF Railway

City of Seattle Clearwater Paper Coalition for America’s Gateways

and Trade Corridors

COSCO Container Lines Americas County of Toole, Montana CREATE (Chicago Region

Environmental and Transportation Efficiency Program)

Environmental Coalition of South Seattle

Freight Mobility Strategic Investment Board

Hanjin Shipping America

International Longshoremen's and Warehousemen's Union

Local 19 King County King County Labor Council

Louis Dreyfus Commodities North Seattle Industrial

Association Pacific Merchant Shipping

Association

Pacific Northwest Asia Shippers Association

Pacific Northwest Waterways Association

Port of Northern Montana

Puget Sound Regional Council Seattle Marine Business Coalition Seattle Metropolitan Chamber of

Commerce

Seattle Parks Foundation South Park Neighborhood

Association Target Corporation

Union Pacific Railroad Washington Apple Commission Washington Council on

International Trade

Washington State Department of Transportation

Washington State Hay Growers Association

Washington State Potato Commission

Wenatchee Valley Traffic Association

Weyerhaeuser Washington Public Ports

Association Yakima Valley Growers-

Shippers Association

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.


20

C. Results of Benefit-Cost Analysis

Figure 18: Container Ships Serving Terminal 46

The Project will result in a benefit of over $10 billion over a 20 year period ($5.1 billion at 7%

discount rate, $7.3 billion at 3% rate). The largest gain compared to the no-build scenario is $9.2

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 post-Panamax berth, as well as

benefits from the value of reduced emissions, accidents and 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.

Executive Summary for Benefit Cost Analysis

Current Status/Baseline & Problem to be Addressed

T46 Dock: Current dock has deteriorating pile caps and deck panels; surface is in a state of disrepair. Stormwater treatment is suboptimal. Current facilities do not allow for unloading 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.

Changes to Baseline/

T46 Dock: Corroding will be repaired while keeping the Port open through innovative process. Old crane will be removed, dock strengthened and crane rail


21

Alternatives extended to allow for simultaneous unloading of two large ships. State of the art stormwater treatment capabilities will capture and treat stormwater. Argo: A new truck connection under SR-99 will accommodate truck trips to the Union Pacific Rail Road Company's Argo Yard. This new road eliminates the use of SR-99 as an access point and creates a 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.

Types of Impacts

T46 Dock: Dock rehabilitation will obviate need for more expensive rebuild, allow terminal to remain in operation during construction and 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 cleaner air and water. Argo: Reduced congestion as well as reduction of 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, reducing accidents.

Population Affected by Impacts

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 from the cleaner water in Puget Sound. Argo: Drivers who will no longer face accidents and wait time. The community 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.

Economic Benefits

T46 Dock: Savings generated by avoiding rebuild. 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 monetized 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 emissions when shipping to destinations throughout the U.S. 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 quality of life 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.

Summary of Results

The Project will result in benefits of $10.3b over a 20 year period. This is in addition to benefits which are not included in the BCA from T117 area development, 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 Project Benefit Cost Analysis(attached and on the project website).



22

V. Project Readiness, Planning Approvals and NEPA

1. Project Readiness

The T46 Modernization Project will be able to meet all local, state, and federal requirements by

June 30, 2015. More specifics on the permits approvals is listed below in §V. Project Readiness,

Planning Approvals and NEPA. 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 corroded concrete, repairing

rebar and recasting with new cement “grout.” An innovative pilot project described in

greater detail in §IV.B.1 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 linear feet of dock). The

work will include:

o Remove deteriorating and corroded 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


23

system infrastructure, reconfiguration of site subsurface stormwater conveyance systems,

and upgrading of vehicle and equipment wash facilities. Existing and state of the art

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 linear 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 upon request. 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 2014 budget noted that operating revenues are expected to be 1.6%

higher than in 2013 due to higher container lease revenue and higher occupancy at industrial

properties. The Port had $6.6 billion in assets and net position of $3.05 billion at the end of 2012.6

The Port uses these capital assets to provide services to its tenants such as those proposed in the

T46 project. The Port will spend contingency reserves if necessary to ensure completion of the

Project. A detailed project budget is below in Figure 20. Estimates are available on the project

website.

The Port of Seattle has expertise in managing grant agreements with a broad range of federal

sources. Recent grant awards include three American Recovery and Reinvestment Act grants,

which have stringent reporting requirements. For all grants the port has accounting procedures in

place to ensure compliance with state and federal reporting requirements, including on-time

submittal of required progress reports and final reports. The Port is subject to annual external

Single Audits and has complied, in all material respects, with the requirements described in

OMB Circular A-133 Compliance Supplement that are applicable to each of its major federal

programs.

6 See “2013 Performance Report” Available at: http://www.portseattle.org/About/Financial-Info/Pages/default.aspx; and “2014

Budget and Business Plan and Draft Plan of Finance” Available at: http://www.portseattle.org/About/Financial-Info/Budget/Documents/2014/2014_Entire_BudgetBook.pdf


http://www.portseattle.org/About/Financial-Info/Pages/default.aspx

http://www.portseattle.org/About/Financial-Info/Budget/Documents/2014/2014_Entire_BudgetBook.pdf

http://www.portseattle.org/About/Financial-Info/Budget/Documents/2014/2014_Entire_BudgetBook.pdf


24

Figure 20: Project Cost Broken Down by Component

TIGER PROJECT COMPONENTS Phase Cost to date 2014 2015 2016 2017 2018 2019 2020 TOTAL

Des ign Contracted -$ 544,924$ 583,424$ 38,500$ -$ -$ -$ -$ 1,166,848$

Staff -$ 115,000$ 137,000$ -$ -$ -$ -$ -$ 252,000$

Overhead -$ 87,400$ 94,614$ -$ -$ -$ -$ -$ 182,014$

Design Subtotal -$ 747,324$ 815,038$ 38,500$ -$ -$ -$ -$ 1,600,862$

Construction Contracted -$ -$ 1,305,504$ 3,280,172$ 3,037,951$ 3,037,951$ 2,734,156$ 2,278,463$ 15,674,199$

Staff -$ -$ 35,500$ 188,050$ 162,050$ 162,050$ 42,150$ 39,200$ 629,000$

Overhead -$ -$ 24,531$ 128,798$ 107,778$ 107,778$ 18,233$ 17,160$ 404,276$

Construction Subtotal -$ -$ 1,365,535$ 3,597,020$ 3,307,779$ 3,307,779$ 2,794,539$ 2,334,823$ 16,707,475$

Total -$ 747,324$ 2,180,573$ 3,635,520$ 3,307,779$ 3,307,779$ 2,794,539$ 2,334,823$ 18,308,337$

Cost to date 2014 2015 2016 2017 2018 2019 2020 TOTAL

Des ign Contracted 1,179,209$ 315,687$ 27,664$ -$ -$ -$ -$ -$ 343,351$

Staff 113,720$ 258,138$ -$ -$ -$ -$ -$ -$ 258,138$

Overhead 65,262$ 78,733$ -$ -$ -$ -$ -$ -$ 78,733$

Design Subtotal 1,358,191$ 652,558$ 27,664$ -$ -$ -$ -$ -$ 680,222$

Construction Contracted -$ 6,100,295$ -$ 601,160$ -$ -$ -$ -$ 6,701,455$

Staff -$ -$ 15,750$ 22,750$ -$ -$ -$ -$ 38,500$

Overhead -$ -$ 11,734$ 11,519$ -$ -$ -$ -$ 23,253$

Construction Subtotal -$ 6,100,295$ 27,484$ 635,429$ -$ -$ -$ -$ 6,763,208$

Total 1,358,191$ 6,752,853$ 55,148$ 635,429$ -$ -$ -$ -$ 7,443,429$


Des ign Contracted 49,674$ 566,102$ 923,664$ -$ -$ -$ -$ -$ 1,489,766$

Staff 250,116$ 35,813$ 116,249$ -$ -$ -$ -$ -$ 152,063$

Overhead 112,243$ 61,145$ 119,779$ -$ -$ -$ -$ -$ 180,924$

Design Subtotal 412,033$ 663,061$ 1,159,692$ -$ -$ -$ -$ -$ 1,822,753$

Construction Contracted -$ -$ -$ 6,609,971$ 7,711,632$ 7,711,632$ -$ -$ 22,033,235$

Staff -$ -$ -$ 391,980$ 256,221$ 256,221$ -$ -$ 904,421$

Overhead -$ -$ -$ 237,815$ 130,867$ 130,867$ -$ -$ 499,548$

Construction Subtotal -$ -$ -$ 7,239,765$ 8,098,720$ 8,098,720$ -$ -$ 23,437,204$

Total 412,033$ 663,061$ 1,159,692$ 7,239,765$ 8,098,720$ 8,098,720$ -$ -$ 25,259,957$


Des ign Contracted -$ 113,340$ 340,020$ -$ -$ -$ -$ -$ 453,360$

Staff -$ -$ 167,200$ -$ -$ -$ -$ -$ 167,200$

Overhead -$ -$ 114,380$ -$ -$ -$ -$ -$ 114,380$

Design Subtotal -$ 113,340$ 621,600$ -$ -$ -$ -$ -$ 734,940$

Construction Contracted -$ -$ -$ 3,159,353$ 3,159,353$ -$ -$ -$ 6,318,705$

Staff -$ -$ -$ 142,900$ 142,900$ -$ -$ -$ 285,800$

Overhead -$ -$ -$ 84,160$ 84,160$ -$ -$ -$ 168,320$

Construction Subtotal -$ -$ -$ 3,386,413$ 3,386,413$ -$ -$ -$ 6,772,825$

Total -$ 113,340$ 621,600$ 3,386,413$ 3,386,413$ -$ -$ -$ 7,507,765$

T46 PAVING

STORMWATER

T46 DOCK REHAB

CRANE RAIL EXTENSION


25

Figure 20: Cost Broken Down by Component (Cont’d)

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. Project Readiness, Planning Approvals and NEPA

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


Des ign Contracted 184,946$ 589,054$ -$ -$ -$ -$ -$ -$ 589,054$

Staff 445,317$ 134,842$ -$ -$ -$ -$ -$ -$ 134,842$

Overhead 199,169$ 232,416$ -$ -$ -$ -$ -$ -$ 232,416$

Design Subtotal 829,432$ 956,311$ -$ -$ -$ -$ -$ -$ 956,311$

Construction Contracted -$ 5,836,800$ -$ -$ -$ -$ -$ -$ 5,836,800$

Staff -$ 134,842$ -$ -$ -$ -$ -$ -$ 134,842$

Overhead -$ 232,416$ -$ -$ -$ -$ -$ -$ 232,416$

Construction Subtotal -$ 6,204,057$ -$ -$ -$ -$ -$ -$ 6,204,057$

Total 829,432$ 7,160,368$ -$ -$ -$ -$ -$ -$ 7,160,368$


Des ign Contracted 250$ 180,750$ -$ -$ -$ -$ -$ -$ 180,750$

Staff 31,261$ 17,639$ -$ -$ -$ -$ -$ -$ 17,639$

Overhead 11,633$ 74,967$ -$ -$ -$ -$ -$ -$ 74,967$

Design Subtotal 43,144$ 273,356$ -$ -$ -$ -$ -$ -$ 273,356$

Construction Contracted -$ -$ 553,534$ 1,660,602$ -$ -$ -$ -$ 2,214,135$

Staff -$ -$ 52,800$ 69,300$ -$ -$ -$ -$ 122,100$

Overhead -$ -$ 34,950$ 93,450$ -$ -$ -$ -$ 128,400$

Construction Subtotal -$ -$ 641,284$ 1,823,352$ -$ -$ -$ -$ 2,464,635$

Total 43,144$ 273,356$ 641,284$ 1,823,352$ -$ -$ -$ -$ 2,737,991$

T117 PUBLIC ACCESS

ARGO


26

Figure 21: T46 Modernization Project Schedule*

2014 2015 2016 2017 2018 2019 2020

Quarter: Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

T46 Dock Rehab

Design

Permits

Construction

Direct Jobs 0 0 0 0 0 0 0 22 23 23 23 26 26 26 26 26 26 26 26 0 0 0 0 0 0 0 0

Funding Source** P P P P P P P PT PT PT PT PT PT PT PT PT PT PT PT

T46 Stormwater Improvements

Design (wash rack)

Permits

Construction (wash rack)

Direct Jobs 0 39 40 0 0 0 0 2 4 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Funding Source** P P P P P P P P P P

T46 Paving

Design

Permits

Construction

Direct Jobs 0 0 0 0 0 9 8 10 12 12 11 10 11 11 10 10 11 11 10 9 9 9 9 7 8 8 7

Funding Source** P P P P P PT PT PT PT PT PT PT PT P P P P P P P P P P P P P P

T46 Crane Rail Extension

Design

Permits

Construction

Direct Jobs 0 0 0 0 0 0 0 10 11 11 11 10 11 11 11 0 0 0 0 0 0 0 0 0 0 0 0

Funding Source** P P P P P P P PT PT PT PT PT PT PT PT

T-117 Shoreline Access

Design


27

Permits

Construction

Direct Jobs 0 0 0 0 0 0 8 8 7 7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Funding Source** P P P P P P P P P P

Argo Roadway Separation

Design

Permits

Construction

Direct Jobs 0 39 39 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Funding Source** P P P P P P P P P P P P P P P

Total Direct Jobs 0 78 79 0 0 9 16 52 57 55 45 46 48 48 47 36 37 37 36 9 9 9 9 7 8 8 7

Total Funding Source P P P P P PT PT PT PT PT PT PT PT PT PT PT PT PT PT P P P P P P P P

* The formula used to calculate construction jobs is: Construction costs (not including overhead) / $76,900.

** T=TIGER (U.S. Department of Transportation) P= Port of Seattle


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2. 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. As for NEPA

assessments, Washington State has one of the most stringent environmental review systems in

the nation. Based on the Port of Seattle’s experience in obtaining permits under our State

Environmental Policy Act and our permitting reviews for the T46 Modernization Project, we are

confident we can complete NEPA assessments within a relatively short time frame.

All approvals for Terminal 46 Modernization are in process and are expected to be finalized

before June 2015. 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, with the exception of the stormwater component,

for which permitting/review already has been completed. No review under NEPA has

been completed for the stormwater component, but it could be completed within four

months if required. For the dock rehab, paving and crane rail extension components,

permit applications and completion of federal and state environmental review is expected

by December 31, 2014 with approvals by June 2015. The NEPA environmental

assessment for the remainder of the project is expected to result in a Finding of No

Significant Impact (FONSI).

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 and grading permits have been submitted. Approvals for all permitting are

expected by June 2014.

T117 Shoreline Access: Federal and state permit applications are expected to be

submitted by July 1, 2014 with approvals by December 31, 2014. Applications for local

land use and building permits are expected to be submitted by June 15, 2014 with

approvals expected by December 31, 2014.

In addition to the NEPA and other environmental permits discussed above, the T46

Modernization Project will obtain the permits and approvals listed below.


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Figure 22: T46 Modernization Required Permits and Timeline

Permit Required Agency Description/ Scope Status Estimated

Completion Date

Work in Navigable Waters (Section 10 Permit)

USACE (Lead) EPA, NMFS, USFWS (consultation) Tribes (concurrence)

For work in, over, or under navigable waters of the United States

Preliminary Joint Aquatic Resource Permit Application (JARPA) materials prepared for first phase of project

June 2015

Section 7 Endangered Species Act (ESA) consultation

National Marine Fisheries (NMFS) US Fish and Wildlife Services (USFWS)

Effect of actions on threatened or endangered species or their critical habitat

Will require submission of Biological Evaluation; Previous Biological Evaluations will be referenced and submitted with updated information

June 2015

Section 106 review

Dept of Archaeology and Historic Preservation (DAHP)

Effect of actions on historic properties

A historic property or cultural resource survey will be prepared; Very likely not considered a historic or cultural property

June 2015

Environmental Protection Agency (EPA) consultation

EPA

Effect of actions on water quality and contaminated sediments

Significant information available to EPA

June 2015

Tribal Concurrence Muckleshoot, Suquamish Tribes

Effect of actions on usual and accustomed treaty fishing rights

Preliminary assessment done

June 2015

Hydraulic Project Approval (HPA)

Washington State Dept of Fish and Wildlife (WADFW)

For work within waters of the state

Preliminary JARPA materials being prepared

June 2015

Water Quality Certification

Washington State Dept of Ecology (DOE)

Work will comply with state water quality standards. Condition become conditions of the Federal permit

Preliminary JARPA materials being prepared

June 2015

Coastal Zone Management (CZM)

Washington State Dept of

Project is consistent with Washington's

Preliminary JARPA materials being

June 2015


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Federal Consistency Ecology (DOE)

Coastal Zone Management Program (WCZMP) to the "maximum extent practicable"

prepared

Shoreline Substantial Development Permit

City of Seattle Dept of Planning and Development (DPD)

Required for development of facilities within 200 feet of the waters of state

Internal preliminary assessment done

June 2015

Master Use Permit, Shoreline


Establish consistency of development and use with shoreline overlay of the city land use code

Internal preliminary assessment done

June 2015

Building Permit


Establish consistency with local building codes

No submission until 90% of design completed

June 2015

NEPA finding of Finding of no Significant Impact (FONSI) is expected in June 2015.

State and Local Planning: The Washington State Freight Plan is still under development. The

T46 Modernization is among the projects that will be submitted to the Washington State

Department of Transportation (WSDOT) by the Washington Freight Advisory Committee, the

entity that WSDOT officially has delegated the task of recommending projects for the state

freight plan.

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. A copy is also attached with the application form.
