Port of Portland takes hit on Hanjin service but autos are up. Other Columbia River ports like Vancouver USA, Kalama and Longview all have projects and new customers that will improve results in the near term. Port of Portland, OR Entering 2015 the Port of Portland found itself increasingly mired in labor relations’ squabbles with the local ILWU. The labor dispute dramatically damaged productivity and eventually led to Hanjin, easily the Port’s largest container customer, to move the ship calls to the Port of Seattle. It was a double blow as prior to the labor discord, Hanjin was actually contemplating increasing their container volumes at the Port of Portland. Since Hanjin delivered roughly 80% of the containers handled at the port’s Terminal Six the decision was a major hit for both the port and those businesses that depend on the strategically located Columbia River shipping facility for their container traffic. “We’ve averaged about 1750 to 1950 container moves on the vessels so, presumably, they’re going to move all that to Seattle,” said Greg Bourassy, Senior Manager of Trade and Cargo Development. He said the terminal, operated by ICTSI Oregon, a branch of International Container Terminal Services (ICTSI) based in the Philippines, would be looking for another major shipping line eventually. However, he said: “Right now we’re not in a position to market the terminal until there’s a reset of the labor/management relationship between the terminal operator and the ILWU local group. “Unless that group has a change of heart about how they’re going to change the business it’s very difficult to market the terminal.” But, there’s also been some good news for the port. Portland received approval in 2014 to ship Ford vehicles to China from Terminal Six with 30,000 units being moved last year that will eventually grow to 40,000 per year. As a consequence, the shipping facility has received a $2.8 million upgrade that has expanded capacity to more than 110,000 vehicles. Portland is already the second largest auto import gateway on the U.S. West Coast and fifth largest in the U.S. The Port has been in the business of handling vehicles for 60 years. Also, the world’s largest potash export consortium, Canpotex, is investing $140 million in its specialized white potash shipping facility at Terminal Five in a new Enterprise Zone at the port. In a statement issued at the announcement, Bill Wyatt, Port of Portland’s Executive Director said: “This is yet another prime example of the influx of private investments in marine industrial facilities on our river system. Since completion of the Columbia River channel deepening project in 2012 companies have initiated and committed investments totalling more than $866 million in Portland facilities and approximately $3.7 billion along the river to date.” Canadian-based Canpotex also operates loading facilities at Port Metro Vancouver, the Port of Thunder Bay and an inland truck terminal on the Canada/U.S. border. The consortium has also announced plans to build a new terminal at the West Coast Port of Prince Rupert. Port of Longview In mid-March Commissioners at the port rejected plans for a $300 million propane terminal that was to be constructed by Haven Energy. Plans were to purchase propane that was being flared off by oil facilities in the Bakken oil fields and to move it in rail cars, under pressure, to Longview. In making the decision the Commissioners said unanimously that they had concerns about the 24-acre location in the vicinity of Pier 4 and the safety issues related to the combustible gas. In addition the port has plans to launch a $10 million Industrial Rail Corridor expansion project that will increase cargo-movement efficiency. In a prepared statement Geir-Eilif Kalhagen, Chief Executive Officer, said: “In 2016, the Port plans to add one more track and two 7,000-foot sidings to the Industrial Rail Corridor’s existing two tracks.” The additional capacity will allow three simultaneous train movements as well as storage of two unit trains on the sidetracks. The Industrial Rail Corridor connects to BNSF Railway’s main line, which is also used by Union Pacific Railroad. In 2005, the Port finished a 10-year, $21 million dedicated rail corridor project that allowed unit train delivery to the Port without intersecting any roadways or otherwise blocking vehicular traffic. That rail project was critical to attracting a $230 million export grain terminal to the Port. It’s not known whether the cancellation of the propane terminal project will affect plans for the rail expansion. The port entered into the scrap metal business with PNW Metal Recycling, LLC late last year and is now sending scrap from the Port to Korea to be melted down into new steel products. “We’re very excited for this new cargo opportunity—it just further diversifies our cargo handling abilities,” said Laurie Nelson-Cooley, the Port’s Business Development Manager. “Also, the close connection PNW Metal Recycling has to the community, supporting local services and jobs, is an added bonus.” “We have intentions of growing our business with a solid working relationship with the longshoremen, Port of Longview and Pasha Stevedoring,” Hank Doane, director of finance and marketing for PNW Metal Recycling, said of the scrap export arrangement. Destined for Korean steel mills attempting to increase production, the scrap consists of three grades: shredded steel, heavy-melt scrap and plate and structural scrap.” Port of Kalama Marketing Manager for the port, Liz Newman, said: “Things are picking up here in the Pacific Northwest since the first of the year. Lots of calls on our industrial properties so we’re very focused on that and on the methanol project (Northwest Innovation Works) among some other smaller, projects. We’re also developing a business park on the east side of I-5. We’re now working on the Master Plan to submit to the City.” The Northwest Innovations Works project refers to a lease agreement that was signed in late January of this year for roughly 6,000 square feet of office space that will provide a base for the company as it moves forward with the planned construction of two methanol plants on the Lower Columbia River, one at Kalama and the other at Port Westward. The two facilities would cost approximately $2 billion and would receive natural gas by pipeline with the methanol going to Dalian, China. The plant will be owned and operated by BP and the Chinese Academy of Sciences together with other investors. In a prepared statement the company has said it is: “studying multiple sites in Oregon and Washington to locate facilities that will convert natural gas to methanol. “One of the sites is at the Port of Kalama, which approved a lease agreement with NW Innovation Works in early April 2014. This step means that permitting with the appropriate regulatory agencies can begin.” The company is also proposing to construct a $1 billion methanol plant at Port Westward, in an existing industrial park owned by the Port of St. Helens. In a statement the company said: “An analysis by the Oregon Department of Employment estimates the economic impact to be $263.5 million dollars with more than 500 direct, indirect and induced jobs created. The site at Port Westward is located within Columbia County’s Resource Industrial-Planned Development (RIPD) zone created to accommodate rural and natural resource-related industries. The area currently includes two Portland General Electric natural gas power-generating stations, with a third under construction. There is also an ethanol and oil exporting facility at this location. Port of Vancouver (USA) The Port of Vancouver USA’s recent investments in infrastructure projects including additional rail, new equipment and improvements to docks are beginning to pay “significant dividends” according to a report review for 2014. The year saw total tonnage at the port climb by 47% to a record 6.6 million tons, much of the increase coming from wind energy imports, grain and steel traffic. As a result, operating annual income at the port improved from $29.8 million to $37.5 million. According to the report: “Thirty-five percent more vessels and 23 percent more rail cars moved cargo to and from the port in 2014.” This year Subaru of America will add 15,000 square feet to its existing facility at the port to meet future growth and Sunlight Supply intends to build a 285,000 square foot building in the port’s Centennial Industrial Park that will make it possible for the company to consolidate its operations in Vancouver, the report said. Located a short distance from the mouth of the Columbia River Vancouver provides the shipping community with a deep draft (43-foot) channel, two mobile harbor cranes with a lift capacity of 140 tonnes and access to two Class One North American railways and the Interstate highway system.