State of the Port Address

To download Executive Director Larry Paulson's "State of the Port Address" in PDF format, click here.

"DELIVERING POSSIBILITIES: 2010 State of the Port Address"

Thank you Commissioner Oliver, and good morning ladies and gentlemen. Welcome to the Port of Possibility, and thank you for being here.

It is always a pleasure to host this get together of folks from across our community to bring you up to date about your port. For me, it’s a proud moment to have the opportunity to share with you that the state of your port is still strong.

It is currently a beehive of construction activity, and I want to give you an idea of what you can see happening this very morning at the Port of Vancouver.

At Terminal 5 – the former Alcoa site – there are more than 100 construction workers on the ground, installing nearly seven miles of rail for our new unit train facility.

Just east of there, 10-15 workers are building gates and installing utilities at the border between Clark Public Utilities’ River Road Generating Facility and Terminal 5.

A little further east, and across Lower River Road from the port offices, the buildings on the Rufener Farm – now known as Centennial Industrial Park – are being carefully taken apart. In this process of deconstruction, another 15-20 people have work because your port is delivering possibilities to attract new businesses in our community.

Still further east, Great Western Malting is providing engineering jobs as it prepares for the work it will do to build new facilities at the port to help provide infrastructure for the next 75 years of their presence at the port.

Additionally, in related work to the port’s Terminal 5 development, Bonneville Power Administration has a number of workers on the ground making changes to their substation, which once served the intense power needs of the Alcoa Aluminum smelter.

I’m particularly appreciative that all of the contractors on these port projects are from the Vancouver/Portland region, keeping these jobs local.

Two of the major engineering firms in Vancouver recently shared a story about their work for the port. They told us the recession would have been much more difficult for them had it not been for the work they’ve been doing for the port. They cited the types of jobs one would expect to hear about – engineering, surveying, and planning – but also pointed out that port work generates many support positions in information technology, administrative services, and other construction-related disciplines – jobs retained at those organizations because of our projects.

The story touched us, and became a true realization of just how your port is delivering on possibilities and jobs for this community.

As we continue to move toward the light at the end of the tunnel that Commissioner Oliver referred to this morning, the Port of Vancouver has managed to get through the recession in good shape. We have had a few bumps and bruises – who hasn’t? – but I am here today to tell you that the Port of Vancouver is delivering possibilities, even despite the economic times.

The possibilities we have always believed in are the ones that the community needs – high quality jobs – investment in infrastructure and opportunity for business to prosper – all part of our stewardship responsibility going back 98 years.

Even as we are all in this room today, your port is delivering on economic recovery and jobs to the community. As I mentioned earlier, there are construction jobs on the ground right now, as a result of the West Vancouver Freight Access project – which I might add, is the largest single infrastructure investment the port has ever made – at Terminal 5, the Centennial Industrial Park and other areas around the port. By the time the rail project is complete in 2017, there will have been as many as 1,900 construction-related jobs created as a result of the project – and provide the necessary infrastructure for permanent jobs.

Two weeks ago, we began the environmentally-responsible deconstruction of the buildings on the Rufener Farm to make way for future businesses. That’s “deconstruction”, rather than “demolition”, because the materials taken off of the site will be recycled or re-used elsewhere in the community for other construction projects. And materials that come out of that deconstruction are already being put to good use. The mechanics shed will be rebuilt at the Colf farm near Woodland. Materials from other buildings will be donated to Affordable Community Environments, and yet others will be used elsewhere. The contractor has been busy receiving calls from many organizations and individuals with interest in reusing materials from the property.

When that project is complete, the Centennial Industrial Park will be ready for light industrial development – which means more construction jobs and in the long-term, new permanent jobs on the ground in Vancouver.

Our development of Terminal 5 and the Centennial Industrial Park, as well as construction of the rail project, are providing that light at the end of the tunnel. These construction projects are the positive steps out of the recession as they set the stage for businesses currently at the port to begin to expand. Better yet, they are reasons why new companies will want to move to the Port of Vancouver – bringing new jobs and an influx of new investment.

Our projections show that at full build out of Terminal 5 and the Centennial Industrial Park, the port will have added as many as 2,000 direct jobs to this community’s employment inventory. That’s a substantial number.

But development of those two properties is not the only way we’re working toward the creation of jobs. As I mentioned, the rail project is allowing for current businesses to expand their operations here at the port, as well as for new ones to locate here. Examples of the businesses that are already expanding operations due to the increased rail service we’re already seeing – and will be seeing more of as early as this June – include Great Western Malting, United Harvest (grain), Subaru (autos), and Vestas (wind energy) among others. In fact, Vestas shifted its cargo to our port due to the rail infrastructure we added, and our proven efficiencies handling wind energy cargo.

Our mission – providing economic benefit to the community through leadership, partnership and stewardship – which is exemplified in our partnerships with the City of Vancouver, BNSF Railway, and others. Without those partnerships, the growth we are seeing in the port today would not likely be possible. One example is that the port and the city recently entered into an interlocal agreement that provides the city’s expertise in managing federal grants and other related duties to the port, a move that helps the city deliver a possibility – keeping those jobs in house.

Commissioner Oliver mentioned earlier some of the partnerships we’ve formed with tenants. Those partnerships are vital to us, especially during this trying economic time, because keeping those jobs and business operations in this community is critical.

We’re also keeping our eyes on business in the global marketplace. The port’s commitment to this community includes an international connection that’s built on the backbone of the Columbia River. Did you know that the Port of Vancouver handles approximately 16 percent of all wheat exports from the United States? Taking that one step further, the ports in the Lower Columbia River system handle about 40 percent of the wheat that’s exported from our country. That’s just one bulk commodity that demonstrates the huge impact of our river in the bigger picture of international trade.

To that point, we’re a partner in the deepening of the Columbia River’s shipping channel from 40 to 43 feet. That extra three feet means added capacity equaling more than a million dollars worth of added cargo per bulk vessel. More bulk export provides a tremendous economic impact to this community. And as a reminder, the Channel Deepening project is expected to be complete by the end of this year.

While the river is important to what we do, roads and rail are also. We all know that Interstate 5 is the West Coast’s most important freight arterial, and that a significant amount of freight moves through the port annually relying on this critical artery for freight mobility. Efficient movement of freight and goods goes well beyond the port. About 66,000 people in Clark County work in freight generating industries. For that reason, the port is supportive of the Columbia River Crossing project. We need a new bridge in order to keep commerce moving through your port and your community. With that in mind, our commission and staff are staying very closely in tune with the work that’s happening on that critical project.

And then there’s the port’s connection to rail, which truly is a big deal – as evidenced by the fact that the $137 million West Vancouver Freight Access project is the largest single infrastructure investment your port has ever made. Rail is our main land connection to the water. The BNSF mainlines (both east-west, and north-south – which intersect in Vancouver) provide benefits to the regional and national network to our community, and to your port.

Rail makes the connection between the global marketplace, our community and the nation stronger and more competitive. Locally, this helps port customers thrive, and efficiently move their cargo into and out of the port. Additionally, it takes congestion off the roads, increases fuel efficiency and reduces emissions.

Marine cargo also means jobs. Marine cargo is moving as it arrives or departs through the port, but jobs stay here. Whether that be truck or rail jobs; barge or tug jobs; or Longshore jobs moving cargo on or off of ships, they are jobs that are valuable to this community.

As an example, I offer this: One year ago, at this breakfast, I announced two new wind energy contracts that had come to Vancouver. Those contracts meant as many as 220 jobs and 56,000 Longshore work hours alone at your port in 2009.

The Port of Vancouver’s second mobile harbor crane – which arrived at the port last year – has already attracted new project cargo and generated jobs, as Commissioner Oliver referred to earlier. And we continue to get inquires from customers who are considering bringing heavy and over-sized cargos to the West Coast.

I’m often asked how things have gone for the Port of Vancouver during the recession. Frankly, it hasn’t been great – we lost cargo, particularly in the construction materials areas, and 100 vessel calls in 2009 – but our diversity of cargo has helped us keep our heads above water. Wind energy helped buffer the loss of steel and other construction materials.

Ports that have diversified are the ones that are surviving and your port is the prototype for what a successful strategy of delivering possibilities looks like.

Speaking of diversity, this seems like the appropriate time to share with you some numbers reflecting the port’s performance in 2009. These numbers are interesting because they reflect that even though we did well thanks to the wind energy, there were some losses due to the economy.

Total Tonnage

• In 2009, the port handled more than 4.8 million metric tons of cargo. That’s down from 2008’s 5.5 million tons, but again, due mostly to the reduction of construction materials cargo.

Vessel calls

• In 2009, 403 vessels called on the Port of Vancouver, down from 503 in 2008.

Wind turbine imports

• 2,700 pieces of wind energy cargo
• Loaded 15 unit trains carrying 879 pieces of wind energy cargo
• Loaded more than 1,200 truck loads of wind energy cargo

Import tonnage

• In 2009, the port handled 715,808 metric tons of import cargo. A year ago, that number was more than 900,000 metric tons.

Wheat exports

• Despite a difficult global economy and a short shutdown of the grain elevator, United Harvest still exported nearly 3.2 million metric tons of wheat. In 2008, it was 3.6 million tons…yrt we continued to do well at the grain elevator.

Copper concentrate exports

• In 2009, we exported nearly 345,000 metric tons of copper concentrate, down just slightly from the previous year.

Steel scrap and malt exports

Here’s an area of growth for the port’s export business.

• Steel scrap exports were up for yet another year in 2009. We exported nearly 318,000 metric tons. That’s a big jump from 2008 when we exported nearly 233,000 metric tons.
• Great Western Malting used our marine terminals for a second year of exporting malted barley, and their business grew to 38,000 metric tons of malt export. A year ago, they had exported 28,000 metric tons.

Automobiles

• Subaru, which calls your port its West Coast port of entry, continues to do well. In 2009, we handled 53,455 imported Subarus, and exported another 510. Those numbers aren’t far off the 58,000 cars handled at the Port of Vancouver a year ago.

Those are just a few of the possibilities realized at your port in the last year. In the coming year, we expect growth in heavy lift and wind energy cargos. We’re exploring new options for bulk exports, which could be added to those that we already have, perhaps at Terminal 5. Wheat is expected to continue to be solid for the coming year and Subaru is consistently stable in its import of vehicles. It also appears there is some hope on the horizon for an improvement in construction materials this year. We’ll see how that goes, but there’s hope.

With the Port Re:Port being such a great opportunity for me to share all of the news about what’s happening at your port. I conclude today’s state of the port address by telling you that the port is in a good position to help lead the economic recovery in our community. With world-class access to river, road and rail, property that’s shovel ready now – both maritime and industrial, a healthy reserve of available property for the next two decades, I am pleased to report that your port is properly positioned to deliver the possibilities of the future.

Thank you for your attention today. Before you get away, we have one more matter of business to take care of this morning. Its time for the announcement of our annual awards.

Every year, the port takes time to recognize outstanding efforts and contributions to the community that have been made by our tenants and customers. This year, we again recognize some of the many industrial and marine partners who call the Port of Vancouver their home.

As I announce each of the award winners, would the representatives of each of the winners please stand to be recognized? At the end of this morning’s event, would those same representatives please come forward to have your photos taken with our commissioners and to accept your plaques?

Without further ado, the winners are:

Environmental Stewardship
When the ports of Vancouver and Portland, along with the states of Washington and Oregon, among a number of other partners entered into the Columbia River Clean Diesel Coalition, Ports America was one of the first to join in on the process. For their efforts, they earned a $250,000 grant from the Environmental Protection Agency that provides the opportunity for them to retrofit equipment to reduce the emissions and burn a low sulfur diesel.

Congratulations to Ports America in being recognized for their efforts in environmental stewardship while reducing diesel emissions at the Port of Vancouver.

Facilities Improvement Award
IMS Electronics Recycling made many upgrades to their facility in 2009, including new office space, a new concrete floor in the warehouse that would support the massive new shredding and separating equipment it installed in 2009 as well. For its efforts, IMS Electronics Recycling has seen its business increase to the point where it is now taking in electronics that have reached the end of their life in Washington, Oregon, Idaho, Alaska and Hawaii.

Congratulations to IMS Electronics Recycling, and thank you for the improvements you have made in your facility over the last year.

Marine Customer of the Year
Pacific Coast Shredding, LLC had its highest export volume through the Port of Vancouver in 2009, as they exported nearly 318,000 metric tons of scrap steel, accepted and shredded at their industrial facility on the east end of the port. The export activities also resulted in a larger number of ship calls than the previous year as well.

For all of that, the port recognizes and congratulates Pacific Coast Shredding as the 2009 marine customer of the year.

Tenant of the Year
Trimac Panel Products is just one example of a tenant that exemplifies partnership. When we were working to site our new groundwater cleanup facility, the one location that kept making sense was just adjacent to the south side of Trimac’s building. This meant adjusting their leasehold and making other changes to accommodate our needs. Trimac recognized the importance of the project and helped out without resistance. When the construction materials industry slowed due to the economy, Trimac was affected and made adjustments to weather the economic storm. With a solid partnership in place, the port and Trimac found a way to retain their business, and work together towards a prosperous future.

Congratulations Trimac Panel Products, the 2009 Port of Vancouver tenant of the year. We are pleased with our partnership and look forward to it continuing well into the future.

Folks…that’s all we have for today. Thank you for being here. We appreciate your interest in, and support of, your port. Have a great day.