Ports Invest to Boost Business

Improvements Attract Customers, Beef Up Security

Ports throughout Oregon and southwest Washington are investing in new construction projects, hoping to enhance their competitive advantage by providing top-of-the-line facilities and expanded space.

Perhaps the mostly highly visible example is the construction of a modernized auto-processing facility for Toyota Logistics Services at the Port of Portland's Terminal 4. The facility opened in early November, about two years after the $38 million effort began.

HB&A Construction Management of Torrance, Calif., built two-thirds of the project, which includes six energy-efficient buildings that feature an office, auto accessory installation center, fueling station and car washing facilities in 97,600-sq.-ft.

The upgrades allow Toyota, a tenant at Terminal 4 for nearly three decades, to consolidate its operations from a split-level site into a contiguous location adjacent to the dock on the 85-acre parcel.

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It also gives Toyota the opportunity to implement measures that reflect its commitment to respect and protect the environment and to respect and protect its workers, said Doug Warneke, a company engineer. "The new facility has allowed us to do some things we've wanted to do but were unable to because of the older facility's limitations," he added.

The modernized processing center boasts ergonomically correct workspaces and improved production space as well as infrastructure powered by hydraulics. With its sights set on LEED certification, Toyota initiated a pilot project to harvest rainwater and store it in the basement so it can be used to flush toilets.

Improved insulation and interior lighting that automatically adjusts to natural light levels are designed to conserve energy. In addition, exterior lights are zoned and controlled by timers.

"Our big dock where we park all the cars is divided into four zones so we can turn the lights off in areas that aren't being used, which is more efficient and helps us be a good neighbor," Warneke said.

The project is symbolic for the Port of Portland, said its project manager Sebastian Degens. "This is the largest waterfront modernization project we've undertaken in many years, and it's a cornerstone project for the port's redevelopment strategy," he added.

Turner Construction Co. was the contractor on about $10 million worth of the work, which included repaving the site once heavy work was completed, installing a private signalized rail crossing at the facility and launching an extensive landscaping project to restore the riverbank near Terminal 4.

The restoration of about 1,700 ft. of riverbank to its native conditions is intended to help control erosion, filter stormwater and improve wildlife habitat. A two-stage stormwater management system will mechanically filter oils and solids from water. The system will then direct the stormwater to bioswales that naturally filter the water before releasing it into the Willamette River.

As Toyota celebrated the opening of its new facility, the Port of Portland began working with Tapani Underground Inc. of Battle Ground, Wash., on a riverbank excavation and remediation project. Due for completion at the end of January, the project carries out early remedial action on a Superfund site at Terminal 4.

Also at Terminal 4, the port will install a sheet-pile bulkhead at Berths 410-411 to improve operations for the Kinder Morgan potash facility there. Starting Jan. 1, Advanced American Diving Service of Portland will lead the $4.5 million effort to install a large underwater steel wall, made of $2.5 million worth of steel from Europe. The project is slated for completion in July 2005.

"This is the largest soda-ash production facility in the world, and we're working around $2.5 million worth of soda-ash production," Degens said. "We'll be working in two, three-week windows to accommodate that production."

The Port of Vancouver U.S.A. also has big plans, namely the development of Columbia Gateway, which will add nearly 500 acres of industrial land along the Columbia River.

"It's got the potential to basically double the size of the Port of Vancouver, both in terms of jobs and acreage," said Todd Coleman, the port's senior director of facilities. "This would add another 447 acres of industrial land and as many as 5,000 jobs, which would double our current employment."

The port's Board of Commissioners approved a $1.4 million contract for Jones and Stokes, an environmental consulting firm based in Sacramento, Calif., to begin the final phase of permitting required as part of the National Environmental Policy Act that will allow the port to develop the property.

The port has initiated a marketing study to explore the best uses for the property over the long term, and public meetings are scheduled to begin late this year or early next.

While the Columbia Gateway project meets the Port of Vancouver's long-term development goals, its recent purchase of 265 acres of light industrial and agricultural zoned property from a neighboring farm meets a shorter-term plan to boost its inventory of "shovel-ready" land.

The port bought the land from Rufener Farm LLC for $5.9 million. Though infrastructure improvements are needed, the land is located adjacent to the port's operating terminals and meets a significant demand.

"Land continues to be a scarce resource in the maritime industry," said Arch Miller, port commission president. "Additional property contiguous to the port's current operating facilities will allow us to expand and enhance our competitive edge in the global marketplace, which in turn benefits our local community."

The Port of Vancouver is also involved in a series of upgrades at Terminal 3 that include paving storage yards and improving lighting, storm drainage systems and infrastructure. Next up is a 12-acre development for lumber transloader TriStar Transload PNW.

"That's an existing tenant that now has about three acres, and they've outgrown their space," Coleman said. "We love to hear about tenants who need to expand."

Future plans call for two more projects that will create a 15,000-sq.-ft. warehouse and a 30,000-sq.-ft. warehouse, both of which will be built for tenants Coleman declined to name until agreements have been signed. Maureen Chan-Heflin, the port's communications manager, said the projects bode well for the local economy.

"We're watching our tenants grow and we've been able to provide the facilities space for our tenants to expand so we can add more jobs and economic growth to the community," she said.

The ports in Portland and Vancouver, Wash., along with others along the Columbia River, had further cause to celebrate when President George W. Bush announced during an August visit to Portland that Congress would direct $15 million to the effort to deepen the Columbia River channel. The $105 million project would deepen the river from 40 ft. to 43 ft. from Portland to the Pacific Ocean, allowing container ships to load more fully and reduce operating costs.

The funding allows the channel deepening to move forward toward a 2007 completion date. The project has been delayed for more than a decade because of environmentalists' concerns that it will damage fish habitat.

Each year, ocean-going ships on the Columbia River transport about $14 billion worth of products to markets worldwide. The products include grain, forest products, potash and soda ash, steel, animal feed, paper products and automobiles for companies such as Toyota, Honda and Subaru.

Along with the ports in Portland, St. Helens and Vancouver, the ports in Kalama and Longview, Wash., are part of the coalition supporting the channel deepening. As they await the start of a dredging project that will enhance their competitiveness, the ports in Kalama and Longview have other plans under way that are designed to draw new customers.

The Port of Longview is developing infrastructure for a new industrial site that will add space for customers. In addition, the port is completing an industrial rail corridor that will allow it to grow its existing export cargo, according to Ken O'Hollaren, the port's executive director.

The Port of Kalama plans to expand a 600-ft. berth to 1,600 ft. in order to better serve its customers. It also will continue to market space in its industrial park, spokeswoman Lyndsie Winter said.

Smaller ports in Oregon also are seeking to boost economic activity. The Port of Astoria is working with a developer to design a golf course on 250 acres in Warrenton that is mostly wetlands. The project involves an array of environmental mitigation efforts, such as cleaning the slough, building tide gates and improving fish habitat, said Peter Gearin, the port's executive director.

The potential development of a new conference center, which already has spurred the construction of two new hotels, would further stimulate tourist activity for the city.

Other plans on tap at the Port of Astoria involve marketing a new boat storage and repair facility, a warehouse with food processing capability and a proposed cold-storage facility. The one-stop, fish-processing center would be the largest consolidation on the West Coast and would have a significant impact on the area's economy, Gearin said.

The International Port of Coos Bay, Ore., will extend an industrial rail spur to property it owns on the North Spit and develop natural gas and other infrastructure for the North Bay Industrial Marine Park, said spokesperson Martin Callery.

At the Port of Hood River, Ore., a $7 million redecking of the Hood River Interstate Bridge is under way and should be completed by early 2005. Christie Constructors of Richmond, Calif., is leading the project. JAL Construction of Bend, Ore., is the lead contractor on the port's completion of infrastructure for a 5.68-acre industrial park.

As the region's ports recover from an economic slump and strive to attract new business, they must also attempt to implement stricter security measures with little financial help from the federal government, said Matthew Erlich, spokesman for the Washington Public Ports Association.

"There is about $40 million in federal funds available to meet $1 billion in requests," he said.

Still, ports in Oregon and southwest Washington continue to focus on gaining a competitive edge.

"These infrastructure developments are the nuts and bolts of economic development," Erlich said. "In a world that has such high competition, it's crucial to make these kinds of investments."