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32 2 0 1 7 A N N U A L R E P O R T TRAINING OVERVIEW TRAINING AND NEW TECHNOLOGY The continued training of our work force on high tech machines and systems remains the focal point of our ILA-USMX Training programs. The amount of training required on such new equipment like rail mounted gantry (RMG) cranes, shuttle trucks, next generation straddle carriers and ship-to-shore cranes is extensive. In 2017, two major ports (New York/New Jersey and Houston) completed purchases of new crane/straddle carrier/RTG simulators to provide a better trained, more productive and safer workforce for the future. Today, with the addition of the simulators in New York/New Jersey and Houston to the already existing ILA-USMX training facility in Linthicum Heights, Maryland, there are now three locations providing our maritime workforce with this very important simulator training. As mentioned in the past, the industry will have to provide a highly-skilled maintenance craft to keep up with the ever-changing technology and equipment being invested in by our member companies from Maine to Texas. Specialized training will also continue to be very important for our ILA maintenance and repair (M & R) mechanics at our terminals and depots. Reefer technology seems to be changing every day, as does the Federal Motor Carriers Safety Association's (FMCSA) required training for all chassis M & R mechanics. At APMT in New York/New Jersey in 2017, we started training mechanics to use high-tech diagnostic software as part of their daily routine. But not all highly technical projects were implemented as scheduled. Although some new gate and terminal systems were executed on schedule, some clerical and other types of training have been postponed to 2018. The ILA-USMX Trust Funds continue to support locally-required training, such as powered industrial truck (PIT), hazardous cargo, and other OSHA requirements as needed. $8,676,451 $21,944,880 2017 (CALENDAR YEAR) TOTAL TRAINING EXPENSES: $30,621,331 USMX TRAINING EXPENSES PORT ASSOCIATION TRAINING EXPENSES $0.23/manhour $0.58/manhour 2017 (CALENDAR YEAR) TOTAL PER-MANHOUR TRAINING EXPENSES BASED ON 37,795,528 MANHOURS @ $0.81/MANHOUR USMX PER-MANHOUR COST PORT ASSOCIATION PER-MANHOUR COST

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