SOUTH TERMINAL MODERIZATION PROJECT Total Project Cost (in Millions) Construction Total Total Construction 28.296 51.0% Double Rail Siding 1 3.900 Warehouse Demo 0.690 Dock Strengthening (560-feet) 9.900 Repair Deck Structure (560-feet) 2.000 Crane Rails (700-feet) 5.700 Electrical Upgrades/ Shore Power 2.700 New Warehouse 3.000 Est. Public Access Contributions (Port 2% Policy) 2 0.406 Contingency 11.320 40.0% Mobilization 2.830 10.0% Escalation 3.180 7.5% Permitting & Engineering 3.370 7.5% Contract Administration 2.250 5.0% Sales Tax 4.270 9.5% Total Estimated Cost 55.516 100.0%
Current Status/ Base line (No Build) & Problem to be Addressed Change to Baseline/ Alternatives Type of Impacts Inefficient Transportation options for oversize and containerized cargo from teh Port of Everett's deep water port terminals to the cargo's inland destination. Without a modern terminal that can handle heavy oversized aerospace components and other large cargo such as constuction and wind energy, etc., inefficent transportation routes will continue to be used. This causes un-needed congestion on WA roads and Interstate highways. The use inefficient long haul trucking as the primarily modal option causes inefficient and costly routing of freight into and out of the region. The current wharf and rail facilities do not have the capacity to meet current Project Matrix for South Terminal Intermodal Freight Facility Project Moderize the Port of Everett's South Terminal to handle the larger ships and provide on-dock rail loading and unloading for the arriving and departing cargo. These improvements will allow future longhaul truck trips to be converted to rail using the on-dock facility to transport the freight between ship and rail very efficiently. Reduced VMT on highways and roadways Reduced pollutant emissions Reduced pollutant emissions Improved efficiency in freight modal choice by switching freight to rail vs. truck Reduced road maintenance cost due to the reduction of VMT on highways Reduced potential fatalities on highways Population Affected by Impacts Vehicle drivers Local, state, region and national populations Local Freight Shippers utilizing the So. Terminal Government General public Economic Benefit Monetized value of reduced truck miles generating fuel savings Monetized value of emission reductions due to reduced trucking Monetized value of emission reductions due to instatllation of electricity on the dock for cold ironing and electrified cranes Monetized value of reduced operational costs to shippers Monetized value of reduced road maintenance costs to due to reduced VMT Monetized value of the reduction of potential fatalities on roadways to due to reduced VMT Summary of Results ( Mill 2015) Estimated 104 million of fuel savings Estimated 24 million in reduced emissions due to reduction in VMT by truck Not Monitized Estimated 40 million operational costs savings to shippers Estimated 51 million of Road maintenance savings to states and regions Estimated 45 million of reduced fatalities from reduction of Vehicle Miles Traveled
the capacity to meet current and future cargo demands. For the cargo that is moved by rail, BNSF routing currently operates at OPCON 3, or the most congested level of operation at this location due to the lack of adequate on-dock rail loading and unloading trackage. Improved worker safety by reducing potential rail accidents. The Port of Everett has a policy that requires at least 2-percent of waterfront capital improvement funds be dedicated to improving public access to Puget Sound s shorelines. Improved non-motorized Specifically, the South Terminal mobility project proposal will result in 650,000 (2 percent ) in capital improvements to the City of Everett s shoreline parks and trails. Port and Rail Workers General public Reduced potential accidents by eliminating train backing up and push, improves ondock and rail workers safety. Improved mobility for pedestrians and bicycles Not monetized Not monetized
Calendar Year Total Direct Beneficiaries (Reduction in Truck VMT) Total Benefits (2015) Total Initial Costs & Residual Maintenance Costs (2015) Undiscounted Net Benfits (2015) Discounted Net Present Value (7%) 2016 0 0 0 0 0 2017 0 (28,824,728) 0 (28,824,728) (26,938,998) 2018 0 (15,434,500) 0 (15,434,500) (13,481,090) 2019 0 (11,338,750) (38,350) (11,377,100) (9,255,798) 1 2020 14,300,000 8,017,666 (171,850) 7,845,816 6,551,980 2 2021 14,300,000 8,017,666 (171,850) 7,845,816 6,143,905 3 2022 14,300,000 8,017,666 (171,850) 7,845,816 5,773,287 4 2023 14,300,000 8,017,666 (171,850) 7,845,816 5,437,445 5 2024 14,300,000 8,017,666 (171,850) 7,845,816 5,112,447 6 2025 14,300,000 8,017,666 (171,850) 7,845,816 4,808,205 7 2026 14,300,000 8,017,666 (171,850) 7,845,816 4,523,364 8 2027 14,300,000 8,017,666 (171,850) 7,845,816 4,256,658 9 2028 14,300,000 8,017,666 (171,850) 7,845,816 4,006,904 10 2029 14,300,000 8,017,666 (171,850) 7,845,816 3,763,762 11 2030 28,600,000 16,035,333 (171,850) 15,863,483 7,156,529 12 2031 28,600,000 16,035,333 (171,850) 15,863,483 6,759,625 13 2032 28,600,000 16,035,333 (171,850) 15,863,483 6,370,969 14 2033 28,600,000 16,035,333 (171,850) 15,863,483 6,006,792 15 2034 28,600,000 16,035,333 (171,850) 15,863,483 5,665,503 16 2035 28,600,000 16,035,333 (171,850) 15,863,483 5,345,615 17 2036 28,600,000 16,035,333 (171,850) 15,863,483 5,045,737 18 2037 28,600,000 16,035,333 (171,850) 15,863,483 4,764,571 19 2038 28,600,000 16,035,333 (171,850) 15,863,483 4,500,904 20 2039 28,600,000 16,035,333 38,999,925 (171,850) 54,863,408 12,494,259 64,812,575 Total 429,000,000 240,529,993 (16,598,053) (3,475,350) 220,456,590 64,812,575
POE So Terminal Modernization BCA FASTLANE Final 4 1 16 chicago v2.xlsx 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 A B C D E F G J K L M N Quality of Life Economic Competiveness State of Good Repair Environmental Sustainability Environmental Sustainability Environmental Sustainability Fuel savings due to reduced miles traveled by cargo using Rail from the terminal vs. Truck Operational cost savings Reduction of maintenance on US Roads & Hwys, Consistent with State and Regional Plans Environmental Benefits from Reduced Emissions by modal change to rail Environmental Benefits from Reduced Emissions achieve by using electric cranes vs. diesel cranes Environmental Benefits from Reduced Emissions achieved by cold ironing ships Reduced fatalities from reduction of VMT Benefit Cost Analysis Summary Long-term Outcomes Social Benefit Inputs Value Gallons of fuel saved Savings of rail transport vs. truck transport Maintenance, preservation and upgrade savings of Highways Discount Rate 7% 46 million gallons of fuel saved by reducing miles traveled with modal shift to Rail 40,138,465 Discount Rate 3% 67,428,472 37% 39% 569 million ton miles @0.071 savings per mile (truck vs. rail) 15,581,270 26,174,922 14% 15% 429 million VTM reduced off the highways 19,841,092 33,330,984 18% 20% CO 2 cost savings 407,000 metric tons of CO 2 saved 15,044,154 15,044,154 14% 9% CO 2 cost savings CO 2 cost savings Fatality cost savings of 5.1 fatalities Not Calculated Not Calculated Monetized Value Safety 44.5 million saved 17,142,704 28,797,970 ########## 170,776,501 16% 17% Total Cost (42,935,110) (35,489,029) 100% 100% Total Benefits 107,747,684 170,776,501 Net Present Value 64,812,575 135,287,473 - - Benefit to Cost Ratio 2.5:1 4.8:1 2.5 4.8 Selection Criteria Summary
POE So Terminal Modernization BCA FASTLANE Final 4 1 16 chicago v2.xlsx 1 2 A B C D E F G H I J K L M N O P Q R S T U Cost Benefit Summary (A) (B) C (D) (E) (F) (G) (H) (I) (J) ( K) (L) (M) (O) (P) (Q) (S) (T) (U) 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Year Calendar Year Non-CO2 Benefits Non-CO2 Costs Net non-co2 Benefits (C+D) 7% NPV net non CO2 Benefits (E/1.07^A)) 3% NPV net non CO2 Benefits (E/1.03^A)) CO2 Reduced (Metric Tons) 3% SCC (2015) Undiscounted CO2 Costs @3% Avg SCC (H*I) NPV CO2 Costs @ 3% Avg SCC (J/1.03^A)) 7% NPV Total Benefits (F+K) 3% NPV Total Benefits (G+K) 7% NPV non CO2 Benefits (C/1.07^A)) 7% NPV non CO2 Cost (D/1.07^A)) NPV7% Benefit + NPV Co2 @3% O+K 3% NPV non CO2 Benefits (C/1.03^A)) 3% NPV non CO2 Cost (D/1.03^A)) NPV3% Benefit + NPV Co2 @3% S+K 0 2016 0 0 43.00 0 0 0 0 0 0 0 0 0 0 1 2017 0 (28,824,728) (28,824,728) (26,938,998) (26,154,367) 0 44.00 0 0 (26,938,998) (26,154,367) 0 (26,938,998) 0 0 (27,985,173) 0 2 2018 0 (15,434,500) (15,434,500) (13,481,090) (12,707,220) 0 45.00 0 0 (13,481,090) (12,707,220) 0 (13,481,090) 0 0 (14,548,497) 0 3 2019 0 (11,338,750) (11,338,750) (9,255,798) (8,470,366) 0 46.00 0 0 (9,255,798) (8,470,366) 0 (9,255,798) 0 0 (10,376,562) 0 4 2020 8,017,666 (171,850) 7,845,816 5,985,536 5,318,071 13565 47.00 637,538 566,444 6,551,980 5,884,515 6,116,639 (131,104) 6,683,084 7,123,593 (152,686) 7,690,037 5 2021 8,017,666 (171,850) 7,845,816 5,593,959 4,825,398 13565 47.00 637,538 549,946 6,143,905 5,375,344 5,716,485 (122,527) 6,266,431 6,916,110 (148,239) 7,466,055 6 2022 8,017,666 (171,850) 7,845,816 5,227,999 4,378,367 13565 48.00 651,103 545,288 5,773,287 4,923,655 5,342,510 (114,511) 5,887,798 6,714,669 (143,922) 7,259,958 7 2023 8,017,666 (171,850) 7,845,816 4,885,980 3,972,749 13565 50.00 678,232 551,465 5,437,445 4,524,214 4,993,000 (107,020) 5,544,464 6,519,097 (139,730) 7,070,561 8 2024 8,017,666 (171,850) 7,845,816 4,566,337 3,604,708 13565 51.00 691,797 546,111 5,112,447 4,150,819 4,666,355 (100,018) 5,212,465 6,329,220 (135,660) 6,875,331 9 2025 8,017,666 (171,850) 7,845,816 4,267,604 3,270,763 13565 52.00 705,361 540,601 4,808,205 3,811,364 4,361,079 (93,475) 4,901,680 6,144,874 (131,709) 6,685,474 10 2026 8,017,666 (171,850) 7,845,816 3,988,415 2,967,756 13565 53.00 718,926 534,948 4,523,364 3,502,704 4,075,775 (87,360) 4,610,723 5,965,897 (127,873) 6,500,845 11 2027 8,017,666 (171,850) 7,845,816 3,727,491 2,692,819 13565 54.00 732,491 529,167 4,256,658 3,221,985 3,809,136 (81,645) 4,338,302 5,792,133 (124,148) 6,321,300 12 2028 8,017,666 (171,850) 7,845,816 3,483,636 2,443,352 13565 55.00 746,055 523,268 4,006,904 2,966,621 3,559,940 (76,303) 4,083,208 5,623,430 (120,532) 6,146,698 13 2029 8,017,666 (171,850) 7,845,816 3,255,735 2,216,997 13565 55.00 746,055 508,027 3,763,762 2,725,024 3,327,047 (71,312) 3,835,074 5,459,641 (117,021) 5,967,668 14 2030 16,035,333 (171,850) 15,863,483 6,152,132 4,067,284 27129 56.00 1,519,240 1,004,396 7,156,529 5,071,680 6,218,779 (66,646) 7,223,175 10,601,244 (113,613) 11,605,640 15 2031 16,035,333 (171,850) 15,863,483 5,749,656 3,690,486 27129 58.00 1,573,498 1,009,969 6,759,625 4,700,454 5,811,943 (62,286) 6,821,911 10,292,470 (110,304) 11,302,439 16 2032 16,035,333 (171,850) 15,863,483 5,373,510 3,348,594 27129 59.00 1,600,627 997,458 6,370,969 4,346,052 5,431,722 (58,212) 6,429,180 9,992,689 (107,091) 10,990,147 17 2033 16,035,333 (171,850) 15,863,483 5,021,972 3,038,376 27129 60.00 1,627,757 984,820 6,006,792 4,023,195 5,076,376 (54,403) 6,061,195 9,701,640 (103,972) 10,686,460 18 2034 16,035,333 (171,850) 15,863,483 4,693,432 2,756,897 27129 61.00 1,654,886 972,071 5,665,503 3,728,968 4,744,276 (50,844) 5,716,347 9,419,068 (100,944) 10,391,139 19 2035 16,035,333 (171,850) 15,863,483 4,386,385 2,501,494 27129 62.00 1,682,015 959,230 5,345,615 3,460,724 4,433,903 (47,518) 5,393,133 9,144,726 (98,004) 10,103,956 20 2036 16,035,333 (171,850) 15,863,483 4,099,425 2,269,752 27129 63.00 1,709,145 946,312 5,045,737 3,216,064 4,143,835 (44,409) 5,090,147 8,878,375 (95,149) 9,824,687 21 2037 16,035,333 (171,850) 15,863,483 3,831,239 2,059,480 27129 64.00 1,736,274 933,333 4,764,571 2,992,812 3,872,743 (41,504) 4,806,075 8,619,782 (92,378) 9,553,114 22 2038 16,035,333 (171,850) 15,863,483 3,580,597 1,868,687 27129 65.00 1,763,403 920,307 4,500,904 2,788,994 3,619,386 (38,789) 4,539,693 8,368,720 (89,687) 9,289,027 23 2039 16,035,333 38,828,075 54,863,408 11,573,265 5,864,078 27129 67.00 1,817,662 920,994 12,494,259 6,785,072 3,382,603 8,190,661 4,303,598 8,124,971 19,673,865 9,045,965 Total 240,529,993 (20,035,053) 220,494,940 49,768,421 19,824,154 406,939 23,629,601 15,044,154 64,812,575 34,868,308 92,703,530 (42,935,110) 107,747,684 155,732,348 (35,489,029) 170,776,501 B/C Ratio 7% 2.51 3% 4.81 NPV 7% 64,812,575 3% 135,287,473 Cost Benefit Summary 1
POE So Terminal Modernization BCA FASTLANE Final 4 1 16 chicago v2.xlsx Assumptions Year # Year 0 2015 Expected Yearly Cost (Construction and Maint.) Cashflow Projections 0 2016 0 1 2017-28,824,728 2016 2017 2018 2019 2 2018-15,434,500 Terminal Moderization incl. Warehouse 21.16 15.40 11.30 47.86 3 2019-11,338,750-55,597,978 4 2020-171,850 On-Dock Rail 7.67 7.67 5 2021-171,850 6 2022-171,850 Cash Outflow of Project - 28.83 15.40 11.30 55.53 7 2023-171,850 8 2024-171,850 9 2025-171,850 Rail Maintenance (0.5% per year) 38,350 10 2026-171,850 Terminal Maintenance ( 0.5% year) 133,500 11 2027-171,850 171,850 12 2028-171,850 13 2029-171,850 27 27 14 2030-171,850 15 2031-171,850 27 16 2032-171,850 17 2033-171,850 18 2034-171,850 19 2035-171,850 20 2036-171,850 21 2037-171,850 22 2038-171,850 23 2039-171,850 Construction + Maint Costs -59,034,978 Residual value 38,999,925 Net cost after Residual value (20,035,053) Road Maintenance Costs Saved by using Rail Avoided Maintenance Costs - By diverting trucks off the roadways and onto the railroads, the public can benefit form reductions in highway maintenance costs. The value of every truck mile diverted to rail saves 0.12/ mile Calculation - Total truck mileage per year x 0.12 Referecne: WSDOT Cost Benefit 0.12 cost/ per mile diverted off roads Reduced operating costs to cargo owner to use Rail vs. Truck Rail vs truck transportation rate per ton mile ( 0.071* ton miles) Calculation - Truck Rate (0.10)per tonm mile - Rail Rate (0.029) ton mile Reference: WSDOT Cost Benefit Study 0.071 per ton mile Safety Average US death toll per 100 Million Vehicle Miles Traveled Cost of a lost of life References: http://www.iihs.org/iihs/topics/t/general-statistics/fatalityfacts/state-by-state-overview 1.08 TIGER/ FASTLANE BCA resource guide Value of injuries 9,600,000 Miles per gallon by mode Calculations Truck 6 mpg fuel usage Tons miles moved per gallon Rail 640 ton miles per gallon http://www.iwla.org/index.php?ht=a/getdocumentaction/i/7799 Truck 240 ton miles per gallon assumes 6 miles per gallon Barge 576 ton miles per gallon Fuel cost 2.29 per gallon source: Diesel price: average week of 3/14/16 (all grades) West Coast PADD5 http://www.eia.gov/dnav/pet/pet_pri_gnd_dcus_r50_w.htm Port of Everett's Big Ship Initative Big Ship ready by 2020 full year of use Big Ship is defined as a panamax ship carring TEU's for offloading and reloading 52 weeks / yr = total containers moved by rail X # of trains / wk Intermodal starts with X train RT to Chicago per month in Year 1 0.5 125 containers / week on rail 6500 Trains per week in year 5 2025 0.5 125 containers / week on rail 6500 To be conservative, the Port estimates 2 trains per month to Chicago until year 10, when the cargo demand in Chicago should have grown to support 1 train per week equalling 4 trains per month. Trains per week in Year 10 2030 1 250 containers / week on rail 13000 Trains per week in Year 15 2035 1 250 containers / week on rail 13000 Trains per week in Year 20 2040 1 250 containers / week on rail 13000 Emissions related to Big Ship Conversion full year of use 2020 construction be to completed in 2019 Assume 75% of Cargo Handling Equipmentemissions is equal to Current Diesel cranes In 2020, Diesel cranes on So Terminal are replaced with Electric Cranes repostisioned from Port of Seattle 1% In 2020, Cold Ironing is available on the dock but only 5% of the ships use it, this usage increases 1% per year 3% Number of ships in equivalent 2015 ships increase per year Assumptions
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 40 41 42 43 44 45 46 47 48 49 A B C D E F G H I J K L M N O P Q R S POE So Terminal Modernization BCA FASTLANE Final 4 1 16 chicago v2.xlsx Year Calendar Year 2015 0 2016 1 2017 2 2018 3 2019 Highway maintenance cost savings using rail vs truck Reduced severity of accidents due to VMT reduction Reductions due to modal change to rail Savings in operational cost of switching to rail Fuel saved GHG reduced* Detailed Benefits before SCC PV @7% PV @3% Highway Reduced Reduced maintenance severity of Highway severity of Savings in cost savings accidents due Savings in maintence cost accidents operational cost of using rail vs to VMT operational cost of savings using due to VMT switching to rail vs truck reduction switching to rail Fuel saved rail vs truck reduction truck Fuel saved (C/1.07^A)) (D/1.07^A)) (E/1.07^A)) (F/1.07^A)) (C/1.03^A)) (D/1.03^A)) (E/1.03^A)) (F/1.03^A)) 4 2020 1,716,000 1,482,624 1,347,580 3,471,462 8,017,666 1,309,128 1,131,087 1,028,062 2,648,362 6,116,639 1,524,644 1,317,292 1,197,307 3,084,349 5 2021 1,716,000 1,482,624 1,347,580 3,471,462 8,017,666 1,223,484 1,057,090 960,806 2,475,105 1,480,237 1,278,924 1,162,434 2,994,514 6 2022 1,716,000 1,482,624 1,347,580 3,471,462 8,017,666 1,143,443 987,935 897,949 2,313,182 1,437,123 1,241,674 1,128,577 2,907,295 7 2023 1,716,000 1,482,624 1,347,580 3,471,462 8,017,666 1,068,639 923,304 839,205 2,161,852 1,395,265 1,205,509 1,095,706 2,822,617 8 2024 1,716,000 1,482,624 1,347,580 3,471,462 8,017,666 998,728 862,901 784,304 2,020,423 1,354,626 1,170,397 1,063,792 2,740,405 9 2025 1,716,000 1,482,624 1,347,580 3,471,462 8,017,666 933,390 806,449 732,994 1,888,246 1,315,171 1,136,308 1,032,808 2,660,587 10 2026 1,716,000 1,482,624 1,347,580 3,471,462 8,017,666 872,327 753,691 685,041 1,764,715 1,276,865 1,103,211 1,002,726 2,583,094 11 2027 1,716,000 1,482,624 1,347,580 3,471,462 8,017,666 815,259 704,384 640,226 1,649,267 1,239,675 1,071,079 973,520 2,507,858 12 2028 1,716,000 1,482,624 1,347,580 3,471,462 8,017,666 761,925 658,303 598,342 1,541,371 1,203,568 1,039,883 945,165 2,434,814 13 2029 1,716,000 1,482,624 1,347,580 3,471,462 8,017,666 712,079 615,236 559,198 1,440,533 1,168,512 1,009,595 917,636 2,363,897 14 2030 3,432,000 2,965,248 2,695,160 6,942,925 16,035,333 1,330,989 1,149,974 1,045,230 2,692,586 2,268,956 1,960,378 1,781,818 4,590,091 15 2031 3,432,000 2,965,248 2,695,160 6,942,925 16,035,333 1,243,915 1,074,742 976,850 2,516,435 2,202,870 1,903,280 1,729,921 4,456,399 16 2032 3,432,000 2,965,248 2,695,160 6,942,925 16,035,333 1,162,537 1,004,432 912,944 2,351,809 2,138,709 1,847,845 1,679,535 4,326,601 17 2033 3,432,000 2,965,248 2,695,160 6,942,925 16,035,333 1,086,483 938,722 853,219 2,197,952 2,076,416 1,794,024 1,630,616 4,200,584 18 2034 3,432,000 2,965,248 2,695,160 6,942,925 16,035,333 1,015,405 877,310 797,401 2,054,161 2,015,938 1,741,771 1,583,122 4,078,237 19 2035 3,432,000 2,965,248 2,695,160 6,942,925 16,035,333 948,977 819,916 745,234 1,919,777 1,957,222 1,691,040 1,537,012 3,959,453 20 2036 3,432,000 2,965,248 2,695,160 6,942,925 16,035,333 886,894 766,276 696,481 1,794,184 1,900,215 1,641,786 1,492,245 3,844,129 21 2037 3,432,000 2,965,248 2,695,160 6,942,925 16,035,333 828,873 716,146 650,916 1,676,807 1,844,869 1,593,967 1,448,781 3,732,164 22 2038 3,432,000 2,965,248 2,695,160 6,942,925 16,035,333 774,648 669,296 608,333 1,567,110 1,791,135 1,547,541 1,406,584 3,623,460 23 2039 3,432,000 2,965,248 2,695,160 6,942,925 16,035,333 723,970 625,510 568,536 1,464,588 1,738,966 1,502,467 1,365,615 3,517,923 51,480,000 44,478,720 40,427,400 104,143,873 0 240,529,993 19,841,092 17,142,704 15,581,270 40,138,465 33,330,984 28,797,970 26,174,922 67,428,472 Assumptions Sum of PV @7% 92,703,530 Sum of PV @3% 155,732,348 See Assumptions tab cost ben summary co2 savings 15,044,154 15,044,154 check summary 107,747,684 170,776,501 GHG Reduction to traffic improvements due to avialability of Rail service = Metric Tons *this will be added on the summary page Total Benefits before SCC See Fuel savings above Detailed Benefits
POE So Terminal Modernization BCA FASTLANE Final 4 1 16 chicago v2.xlsx A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB AC AD AE AF AG AH AI AJ AK AL AM AN 5 Savings from modal change from Truck to Rail Transportation 6 7 8 9 10 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 61 62 63 64 65 Reduction in Truck miles with using rail from Chicago, IL Increase in Rail Miles Everett to Chicago, IL Change due to use of rail vs truck from Everett, WA to Chicago, IL SCC Calculations at 3% Gallons Total Containers moving between Everett # ships or equiv. based saved of fuel used from conversation to electric cranes from Total Trucks @1 Travel distance Total Gallons Savings Savings Net Reduction in Reduction in operation cost based upon differential rate/ Fuel savings due Fuel savings due Social cost of Carbon Total saved in Rate of and upon 2015 diesel gallons per Tons/ container/ in Miles / Total Truck Total Truck Ton of Truck Fuel # double stacked Travel distance Total Rail ton Total Gallons of (Reduction) in (Reduction) in gallons of fuel mile rail vs truck to modal change to switch to Fuel savings due Co2 savings@ 20 (3%) Social cost of Year # Year growth Chicago size ships cranes container truck Truck truck Miles miles used Tons/ railcar railcars by rail Total Rail Miles miles fuel used by Rail miles Ton miles used reduction in miles to rail @ / gal electric cranes to cold ironing lbs/ gal CO2 in MT (2015) Carbon (3%) 0.70 40 +C/+D 2200 "+J*+K Total tons * miles "+L/ 6 mpg) 80 E/2 2127 =+P*Q =+R*O +S/640 0.071 2.29 not calculated not calculated +AH*20 lbs +AJ/2240 / MT Base Year 2016 135 - - - 0 43.00 0 2016 0 1 2017 135 - - - - 0 44.00 0 2017 1 2 2018 135 - - - 0-45.00 0 2018 2 3 2019 135 - - - 0-46.00 0 2019 3 1 year facility opens 4 2020 3% 6,500 139 4,550 6,500 2200 14,300,000 572,000,000 2,383,333 3250 2127 6,912,750 553,020,000 864,094 7,387,250 18,980,000 1,519,240 1,347,580 3,471,462 30,384,792 13,565 47.00 637,538 2020 4 2 5 2021 3% 6,500 143 4,550 6,500 2200 14,300,000 572,000,000 2,383,333 3250 2127 6,912,750 553,020,000 864,094 7,387,250 18,980,000 1,519,240 1,347,580 3,471,462 30,384,792 13,565 47.00 637,538 2021 5 3 6 2022 3% 6,500 148 4,550 6,500 2200 14,300,000 572,000,000 2,383,333 3250 2127 6,912,750 553,020,000 864,094 7,387,250 18,980,000 1,519,240 1,347,580 3,471,462 30,384,792 13,565 48.00 651,103 2022 6 4 7 2023 3% 6,500 152 4,550 6,500 2200 14,300,000 572,000,000 2,383,333 3250 2127 6,912,750 553,020,000 864,094 7,387,250 18,980,000 1,519,240 1,347,580 3,471,462 30,384,792 13,565 50.00 678,232 2023 7 5 8 2024 3% 6,500 157 4,550 6,500 2200 14,300,000 572,000,000 2,383,333 3250 2127 6,912,750 553,020,000 864,094 7,387,250 18,980,000 1,519,240 1,347,580 3,471,462 30,384,792 13,565 51.00 691,797 2024 8 6 9 2025 3% 6,500 161 4,550 6,500 2200 14,300,000 572,000,000 2,383,333 3250 2127 6,912,750 553,020,000 864,094 7,387,250 18,980,000 1,519,240 1,347,580 3,471,462 30,384,792 13,565 52.00 705,361 2025 9 7 10 2026 3% 6,500 166 4,550 6,500 2200 14,300,000 572,000,000 2,383,333 3250 2127 6,912,750 553,020,000 864,094 7,387,250 18,980,000 1,519,240 1,347,580 3,471,462 30,384,792 13,565 53.00 718,926 2026 10 8 11 2027 3% 6,500 171 4,550 6,500 2200 14,300,000 572,000,000 2,383,333 3250 2127 6,912,750 553,020,000 864,094 7,387,250 18,980,000 1,519,240 1,347,580 3,471,462 30,384,792 13,565 54.00 732,491 2027 11 9 12 2028 3% 6,500 176 4,550 6,500 2200 14,300,000 572,000,000 2,383,333 3250 2127 6,912,750 553,020,000 864,094 7,387,250 18,980,000 1,519,240 1,347,580 3,471,462 30,384,792 13,565 55.00 746,055 2028 12 10 13 2029 3% 6,500 181 4,550 6,500 2200 14,300,000 572,000,000 2,383,333 3250 2127 6,912,750 553,020,000 864,094 7,387,250 18,980,000 1,519,240 1,347,580 3,471,462 30,384,792 13,565 55.00 746,055 2029 13 11 14 2030 3% 13,000 187 9,100 13,000 2200 28,600,000 1,144,000,000 4,766,667 6500 2127 13,825,500 1,106,040,000 1,728,188 14,774,500 37,960,000 3,038,479 2,695,160 6,942,925 60,769,583 27,129 56.00 1,519,240 2030 14 12 15 2031 3% 13,000 192 9,100 13,000 2200 28,600,000 1,144,000,000 4,766,667 6500 2127 13,825,500 1,106,040,000 1,728,188 14,774,500 37,960,000 3,038,479 2,695,160 6,942,925 60,769,583 27,129 58.00 1,573,498 2031 15 13 16 2032 3% 13,000 198 9,100 13,000 2200 28,600,000 1,144,000,000 4,766,667 6500 2127 13,825,500 1,106,040,000 1,728,188 14,774,500 37,960,000 3,038,479 2,695,160 6,942,925 60,769,583 27,129 59.00 1,600,627 2032 16 14 17 2033 3% 13,000 204 9,100 13,000 2200 28,600,000 1,144,000,000 4,766,667 6500 2127 13,825,500 1,106,040,000 1,728,188 14,774,500 37,960,000 3,038,479 2,695,160 6,942,925 60,769,583 27,129 60.00 1,627,757 2033 17 15 18 2034 3% 13,000 210 9,100 13,000 2200 28,600,000 1,144,000,000 4,766,667 6500 2127 13,825,500 1,106,040,000 1,728,188 14,774,500 37,960,000 3,038,479 2,695,160 6,942,925 60,769,583 27,129 61.00 1,654,886 2034 18 16 19 2035 3% 13,000 217 9,100 13,000 2200 28,600,000 1,144,000,000 4,766,667 6500 2127 13,825,500 1,106,040,000 1,728,188 14,774,500 37,960,000 3,038,479 2,695,160 6,942,925 60,769,583 27,129 62.00 1,682,015 2035 19 17 20 2036 3% 13,000 223 9,100 13,000 2200 28,600,000 1,144,000,000 4,766,667 6500 2127 13,825,500 1,106,040,000 1,728,188 14,774,500 37,960,000 3,038,479 2,695,160 6,942,925 60,769,583 27,129 63.00 1,709,145 2036 20 18 21 2037 3% 13,000 230 9,100 13,000 2200 28,600,000 1,144,000,000 4,766,667 6500 2127 13,825,500 1,106,040,000 1,728,188 14,774,500 37,960,000 3,038,479 2,695,160 6,942,925 60,769,583 27,129 64.00 1,736,274 2037 21 19 22 2038 3% 13,000 237 9,100 13,000 2200 28,600,000 1,144,000,000 4,766,667 6500 2127 13,825,500 1,106,040,000 1,728,188 14,774,500 37,960,000 3,038,479 2,695,160 6,942,925 60,769,583 27,129 65.00 1,763,403 2038 22 20 23 2039 3% 13,000 244 9,100 13,000 2200 28,600,000 1,144,000,000 4,766,667 6500 2127 13,825,500 1,106,040,000 1,728,188 14,774,500 37,960,000 3,038,479 2,695,160 6,942,925 60,769,583 27,129 67.00 1,817,662 2039 23 221,617,500 569,400,000 45,577,188 40,427,400 104,143,873 911,543,750 406,939 23,629,601 429,000,000 17,160,000,000 97,500 16,590,600,000 25,922,813 221,617,500 40,427,400 104,143,873 911,543,750 406,939 23,629,601 Total for 23 years forward 2017-2039 + base 2016 year Railroad opens 1/1/2017 Detailed Savings
Decreased road maintenance due to construction of Project and use of on-dock rail No Build Decrease in Year Truck Miles Maintenance No Build Total Maintenance Costs Total savings saved rate/ mile Total Miles Maintenance using 2 trains per Cost month vs. truck 0.12 2020 14,300,000 0.12 1,716,000 14,300,000 1,716,000 1,716,000 2021 14,300,000 0.12 1,716,000 14,300,000 1,716,000 1,716,000 2022 14,300,000 0.12 1,716,000 14,300,000 1,716,000 1,716,000 2023 14,300,000 0.12 1,716,000 14,300,000 1,716,000 1,716,000 2024 14,300,000 0.12 1,716,000 14,300,000 1,716,000 1,716,000 2025 14,300,000 0.12 1,716,000 14,300,000 1,716,000 1,716,000 2026 14,300,000 0.12 1,716,000 14,300,000 1,716,000 1,716,000 2027 14,300,000 0.12 1,716,000 14,300,000 1,716,000 1,716,000 2028 14,300,000 0.12 1,716,000 14,300,000 1,716,000 1,716,000 2029 14,300,000 0.12 1,716,000 14,300,000 1,716,000 1,716,000 2030 28,600,000 0.12 3,432,000 28,600,000 3,432,000 3,432,000 2031 28,600,000 0.12 3,432,000 28,600,000 3,432,000 3,432,000 2032 28,600,000 0.12 3,432,000 28,600,000 3,432,000 3,432,000 2033 28,600,000 0.12 3,432,000 28,600,000 3,432,000 3,432,000 2034 28,600,000 0.12 3,432,000 28,600,000 3,432,000 3,432,000 2035 28,600,000 0.12 3,432,000 28,600,000 3,432,000 3,432,000 2036 28,600,000 0.12 3,432,000 28,600,000 3,432,000 3,432,000 2037 28,600,000 0.12 3,432,000 28,600,000 3,432,000 3,432,000 2038 28,600,000 0.12 3,432,000 28,600,000 3,432,000 3,432,000 2039 28,600,000 0.12 3,432,000 28,600,000 3,432,000 3,432,000 429,000,000 51,480,000 51,480,000
POE So Terminal Modernization BCA FASTLANE Final 4 1 16 chicago v2.xlsx Year Gallons and CO2 MT Saved due to shift in mode Total gallons saved (reduced) in modal shift to rail Fuel savings due to reduced VMT CO2 Reduced (Metric Tons) @2.285 / gal 2020 1,519,240 3,471,462 13,565 2021 1,519,240 3,471,462 13,565 2022 1,519,240 3,471,462 13,565 2023 1,519,240 3,471,462 13,565 2024 1,519,240 3,471,462 13,565 2025 1,519,240 3,471,462 13,565 2026 1,519,240 3,471,462 13,565 2027 1,519,240 3,471,462 13,565 2028 1,519,240 3,471,462 13,565 2029 1,519,240 3,471,462 13,565 2030 3,038,479 6,942,925 27,129 2031 3,038,479 6,942,925 27,129 2032 3,038,479 6,942,925 27,129 2033 3,038,479 6,942,925 27,129 2034 3,038,479 6,942,925 27,129 2035 3,038,479 6,942,925 27,129 2036 3,038,479 6,942,925 27,129 2037 3,038,479 6,942,925 27,129 2038 3,038,479 6,942,925 27,129 2039 3,038,479 6,942,925 27,129 Total 45,577,188 104,143,873 406,939 Notes: Source: Diesel price: average week of 3/14/16 (all grades) West Coast PADD5 http://www.eia.gov/dnav/pet/pet pri gnd dcus r50 w.htm 2.29 average price Gallons & MT CO2
POE So Terminal Modernization BCA FASTLANE Final 4 1 16 chicago v2.xlsx Collision Type Accident Count by KABCO Current est. accident costs Current Annual social cost of Accidents Effect on Accidents with conversion to rail Estimated reduction in injuries by 70 % Estimated Annual per Insurance Inst accident costs savings Fraction of Unit value Conversation of Truck AIS Level Severity VSL (2015)* Traffic AIS 0 no injury 0 0 AIS 1 Minor 0.003 28,200 0 0 0 AIS 2 Moderate 0.047 451,200 0 0 0 AIS 3 Serious 0.105 1,008,000 0 0 0 AIS 4 Severe 0.266 2,553,600 0 0 0 AIS 5 Critical 0.593 5,692,800 0 0 0 AIS 6 reduction VMT Unsurvivable 1.000 9,600,000 0.231660 0 2,223,936 1,556,755 2,223,936 AIS 6 due to crossing closure Unsurvivable 1.000 9,600,000 0 0 0 0 Property Damage Only 4,198 0 0 0 2,223,936 1,556,755 2,223,936 *TIGER BENEFIT-COST ANALYSIS (BCA) RESOURCE GUIDE updated 3/1/2016 Conversion of Collision statistics based upon 100 Million miles travel by truck Annual Average annual savings Conversion of Collision statistics based upon 100 Million miles travel by truck US Traffic Fatalities Per 100 Million miles traveled on Roads Annual Total Truck miles reduced over the 20 years 429,000,000 /20 21,450,000 Total Truck miles divided by 100 million miles 4.29 0.2145 Estimated Fatalities Per 100 million miles travel based upon average US's experience 1.08 0.23166 2015 Unsurvivable value 9,600,000 Annual life savings based upon reduced truck mileage 2,223,936 Total lives saved over 20 years Dollars saved based upon estimated mileage saved per year 5.10 20 44,478,720 Collision Costs Page 12
Funding Sources Port of Everett WA Dept of Commerce TIGER Request FASTLANE Request Total Project Funding Total Federal Total Local Total Project Funding SOUTH TERMINAL MODERIZATION PROJECT Amount Status in Millions Purpose 24.5 Committed FE, Enviromental, and Construction 1.0 Committed Construction 10.0 Application in Process Construction 55.5 20.0 Requested Construction 55.5 Total Project Cost 30.0 54% 25.5 46% 55.5 100% Project Budget CN FE/ CN Engineering Contingency Total Cost in Millions % 38.5 69% 5.6 10% 11.3 20% 55.5 100% Project Funding in Millions % FASTLANE Request 20.0 36% TIGER Request 10.0 18% Local Match 25.5 46% 55.5 100% Type of Funding Source of Funding Amount Status % FASTLANE Federal 20,000,000 Requested 36% TIGER Federal 10,000,000 Application Pending 18% Federal Match 30,000,000 54% WA Dept. of State 970,000 Committed 2% Port of Everett Port 24,550,000 Committed 44% State & Local 25,520,000 46% Total Project Funding 55,520,000 100%
FASTLANE Project Element Detail Contract Admin. 5% (F) 2% Public Access (G) Engineering & Permitting 7.5% (H) Base Constr. Cost (A) Contingency 40% (B) Mobilization 10% C Escalation 7.5% (D) Sales Tax 9.5% E Total Element Cost % of Total Cost NSFHP Other Federal Non-Federal Double Rail Siding 3,900,000 1,560,000 390,000 438,750 597,431 314,438 471,656 7,672,275 13.8% 7,672,275 Warehouse Demo 690,000 276,000 69,000 77,625 105,699 55,631 83,447 1,357,403 2.4% 1,357,403 Dock Strengthening (560 feet) 9,900,000 3,960,000 990,000 1,113,750 1,516,556 798,188 319,275 1,197,281 19,795,050 35.7% 17,480,306 2,314,744 Repair Dock Structure (560 feet) 2,000,000 800,000 200,000 225,000 306,375 161,250 64,500 241,875 3,999,000 7.2% 2,519,694 1,479,306 Crane Rails (700 feet) 5,700,000 2,280,000 570,000 641,250 873,169 459,563 183,825 689,344 11,397,150 20.5% 10,000,000 1,397,150 Electrical Upgrades/Shore power 2,700,000 1,080,000 270,000 303,750 413,606 217,688 87,075 326,531 5,398,650 9.7% 5,398,650 New Warehouse 3,000,000 1,200,000 300,000 337,500 459,563 241,875 362,813 5,901,750 10.6% 5,901,750 27,890,000 11,156,000 2,789,000 3,137,625 4,272,399 2,248,631 654,675 3,372,947 55,521,278 100.0% 20,000,000 10,000,000 25,521,278 36.0% 18.0% 46.0% *NSFHP funding for the project would be utilized on construction costs, which include base construction estimate, contingency, mobilization & escalation. For illustration purposes, this is shown for only two of the seven project elements, but may be used for the construction component of the other project elements should the actual construction costs be less at bid.
REMAINING CAPITAL VALUE OF THE SOUTH TERMINAL MODERIZATION PROJECT Remaining Life Proporation at Asset Expected Life Total Project Cost 20 years after project completed Remaining Capital Value Dock Modernization 80 40,589,850 75% 30,442,388 Rail 100 7,672,275 80% 6,137,820 Warehouse 30 7,259,153 33% 2,419,718 38,999,925 The remaining capital value when rounding is 55,521,278 38,999,925
Year Decreased Operational Costs due to construction of the project and conversion to rail between Everett, WA and Chicago, IL Total ton miles on rail after opening the ondock rail saving / mile 0.071 Reduction in operation cost based upon differential rate/ mile rail vs truck 2020 18,980,000 0.071 (1,347,580) 2021 18,980,000 0.071 (1,347,580) 2022 18,980,000 0.071 (1,347,580) 2023 18,980,000 0.071 (1,347,580) 2024 18,980,000 0.071 (1,347,580) 2025 18,980,000 0.071 (1,347,580) 2026 18,980,000 0.071 (1,347,580) 2027 18,980,000 0.071 (1,347,580) 2028 18,980,000 0.071 (1,347,580) 2029 18,980,000 0.071 (1,347,580) 2030 37,960,000 0.071 (2,695,160) 2031 37,960,000 0.071 (2,695,160) 2032 37,960,000 0.071 (2,695,160) 2033 37,960,000 0.071 (2,695,160) 2034 37,960,000 0.071 (2,695,160) 2035 37,960,000 0.071 (2,695,160) 2036 37,960,000 0.071 (2,695,160) 2037 37,960,000 0.071 (2,695,160) 2038 37,960,000 0.071 (2,695,160) 2039 37,960,000 0.071 (2,695,160) 569,400,000 (40,427,400)
Table 6: Project Schedule South Terminal Wharf Improvement 2016 2017 2018 2019 Planning/PE Environmental Task Terminal Rail Improvements South Terminal Modernization FE Complete Prel. Engineering 2015 Feb-16 Secure Permits Complete NEPA/SEPA Jul-16 Jul-16 Construction Receive Federal Permits N/A Jan-17 Issue Call-For-Bids Aug-16 Mar-17 Terminal Rail Improvement 2016 2017 2018 2019 Award Construction Contract Sep-16 May-17 Planning/PE Begin Construction Oct-16 Aug-17 Environmental Substantially Completion Apr-17 Feb-19 FE Secure Permits 17 Months Construction Construction 42 Months Construction 42
Year Quarter # Jobs Direct Jobs by Calendar Quarter 2017 Q1 94 28,830,000 2017 2018 2019 Total Q2 94 Q1 94 200 147 Q3 251 Q2 94 200 147 Q4 375 Q3 251 200 0 2018 Q1 200 15,400,000 Q4 375 200 0 Q2 200-5 Capital Spending in Mill. 28.8 15.4 11.3 55.5 Q3 200 Total Annual Jobs at Q4 200 76,900/yr 375 200 147 722 2019 Q1 147 11,300,000 Q2 147 Note: These job estimates are based upon federal guidelines of 76,900/ year Q3 0 The Port has also engaged Martin Associates to prepare an Economic Impact report Q4 0 that will refine the job numbers based upon the Seattle/ Tacoma economy. Based Total Job Years 0 0 upon different estimates of annual salaries, the numbers between the two estimates will vary.