What maritime, infrastructure and exports mean for labor?

1. What maritime, infrastructure and exports mean for labor? Mike Elliott, Brotherhood of Locomotive Engineers & Trainmen (BLET), Washington State Legislative Board (WSLB) February 2014

2. FAST FACTS • Washington State MOST Trade Dependent in America • 1 in Every 4 Jobs Rely on Exports • Up to 40% of All Jobs Are Trade Related • Exports drive 1/6 of state’s economy • In 2011, Washington State ranked 5th in Total Value of Exports • Source: Washington State Department of Commerce • Source: Washington Council on International Trade

3. Background • As a Trade Gateway To Asia, WA ST Plays A Vital Role In Meeting The Growing International Demand For Agriculture & Energy Products Worldwide • Infrastructure Investment Needed to Upgrade Overland, Maritime Capacity & Support • Important to be “Trade Diversified” while remaining “Commodity Neutral” • MAP-21Re-Authorization Important Funding Vehicle for Infrastructure Projects

4. Adequate Funding Coupled w/ Fair, Objective, Timely, Science-Based EIS Process Needed • WPPA, BLET, & other Trade Stakeholders have Expressed Concerns as to potential Negative Impact of Expanded-Scope “Programmatic” EIS Studies • Keep Washington State Attractive to Private Investment and “Open for Business” to Everyone • Protect Blue-Collar Job Opportunities in Heavy Industry (Rail, Manufacturing, Industrial, Maritime, etc.)

5. Maritime Cluster and the Labor Community • Maritime Cluster Provides Skilled Trade Jobs Throughout The Northwest • Family Wage Jobs & Benefits in Several Skilled Crafts • BNSF ALONE Employs 3500 State-Wide w/ an Annual Payroll Over $248 Million • Unionized Rail Industry Employs 2500+ Operating Craft Jobs State-Wide • Tacoma BLET Local Division ALONE has 170+ members. That’s approx $12 million to Locomotive Engineers in Annual Wages

6. Rail Transportation Industry and Washington’s Maritime Cluster • Washington Benefits from Over $100 millionin Private Railroad Investment Annually. • On 2/4/14, BNSF Announced a Capital Commitment of $5 Billion for 2014 • $2.3 Billion Earmarked for Core Network and Related Projects • Much of Capacity Expansion Will Focus on the Northern Corridor (Hi-Line)

7. Northern Rail Corridor • Hi-Line Capacity Expansion Focus to Accommodate : • Agriculture Products • Intermodal • Automotive • Industrial Products Related to Crude Oil Production • BakkenOil & Gas • Direct Correlation Between the Health of Rail Transportation and Growth in Maritime and Export industries. • Working with Ports, Local Governments, and Private Developers, Rail Has Helped Connect Maritime Projects Beneficial to Washington’s Role as an International Trade Center

8. Staying Competitive • Washington’s Ports face growing competition from Canada, from other U.S. Ports, and from the Panama Canal • Harbor Maintenance Tax issue needs to be resolved • While the value of WA exports is at record levels, freight rail volumes in the region remain below pre-recession figures – still capacity available • Need continued investment (i.e. PPP) to preserve & grow a balance of business in all trade categories

9. Growth Opportunities • Proposed Multi-Commodity Terminals to Expand Existing Port Facility In Longview, WA • Create New Facility at Cherry Point, WA • Represent the Single Largest Trade Investment Opportunity in the Region to Date • Nearly 12,000 direct and indirect jobs • $1.5 billion in private investment • Research by the Washington Farm Bureau found the terminals are likely to increase export opportunities for other trade industries in Washington State

10. SAFETY FIRST • Build/Update Infrastructure to Promote Highest Safety and Environmental Standards • Support Broad Spectrum of Union Based Crafts and Positions • Coordinate Regulatory Oversight at Federal, State, and Local Levels • Support Apprenticeship/Education Programs to ensure “best practices” skill-sets are maintained and passed along to the next generation

11. QUESTIONS?