LONG BEACH, Calif. -- The Port of Long Beach beginning April 1 plans to offer financial incentives
to marine terminal operators and ocean carriers to ship more rail cargo through the port.

Most cargo that moves to or from the port via intermodal rail is considered discretionary because it
is not consumed by the local population. This freight, which moves to or from the eastern half of the
country, could just as easily move through other ports.

In order to attract more discretionary cargo, the Long Beach Board of Harbor Commissioners has
given preliminary approval to a tariff amendment that would lower by 10 percent certain fees paid by
marine terminal operators. The tariff reduction would apply to all containers that move by rail.
Intermodal rail accounts for about 50 percent of the port’s total cargo volume.

Long Beach estimates that the 10 percent fee reduction would amount to a savings of about $4 to
$6 per container for terminal operators. This measure would cost the port about $11 million over the
coming year.

In addition, the board approved a tariff change that would offer ocean carriers $20 per TEU, or $40
per FEU, for all new cargo above what they shipped through the port last year.
The harbor commissioners must give final approval to the tariff changes. The incentives will be in
effect for one year, likely beginning on April 1.

Container volumes continue to decline in Southern California due to the weak economy and the loss
of cargo to competing ports. Long Beach’s container volume declined 11 percent last year and
dropped 25 percent in January compared to January 2008.
Los Angeles announced a similar incentive program last week.