• 15,632 are direct jobs, in that these jobs are generated by maritime activities at Kalama, Longview, Vancouver, Portland, and St. Helens. If such activities should cease, these jobs would be discontinued. It is these jobs that are most directly dependent upon the vessel and cargo activity. These jobs are with the International Longshore and Warehouse Union, terminal operators, stevedores, trucking firms, railroads, steamship agents, freight forwarders and customhouse brokers, warehousemen, federal government agencies, towing companies, pilot organizations, and marine construction companies.
• 10,642 are induced jobs, or those jobs supporting the local purchases made by the 15,632 individuals holding the direct jobs in the Columbia-Willamette River region due to port activity. Should the direct jobs be lost from the economy, the induced jobs supporting the purchases of the direct jobs would also be lost. These jobs are with local grocery stores, retail outlets, restaurants, transportation services, local government services, schools, hospitals, etc.
• The firms dependent upon the marine activity along the Columbia and Willamette Rivers made nearly $1 billion of local purchases for office supplies, equipment, utilities, communications, maintenance and repair services, transportation services, professional services, and goods and services. These purchases supported 13,824 indirect jobs in the regional economy.
  

These are family-wage jobs, paying on average $46,000 per year.(Top)

Generation of State and Local Taxes: In 2000, maritime activity at public and private terminals along the Columbia and Willamette Rivers generated $208 million in state and local taxes.

Healthy Local Economy: Competitive transportation access to international markets makes an important contribution to the economic vitality of the region. The cost to move product to market remains an important consideration for businesses looking to locate or expand within the region. This point can be illustrated by a hypothetical example wherein a firm requiring 20 acres of land and exporting 1,000 containers annually is seeking to locate in either Portland or the Puget Sound. To lease a 20-acre parcel in Portland, the firm might expect to pay $296,000 annually. Since both Portland and Seattle both presently enjoy competitive access to international markets, the cost to move product to market from either location is essentially the same. However, if the Columbia River channel is not deepened, Portland risks losing this competitive access and parity in transportation costs. In a "without" channel deepening scenario, the hypothetical firm could face additional transportation costs of $281,000 annually to locate in Portland as opposed to Seattle. In this scenario, the incremental transportation cost nearly equals the total land cost and would likely be an important consideration to the detriment of locating in Portland.

The example above illustrates one way in which viable waterborne transport contributes to the overall health of local economies. (Top)

Have alternatives to channel deepening been examined?

As part of the Channel Deepening Feasibility Study, alternatives to channel deepening were closely examined. This alternatives analysis focused on two areas: LOADMAX and Regional Port Alternatives.

LOADMAX: A concerted effort has been made by Columbia River ports and the users of the deep-draft channel to maximize cargo liftings on ocean freighters short of deepening the channel. The primary tool developed through this effort has been the River Level Reporting and Forecasting System, also known as LOADMAX. LOADMAX is a planning tool that helps pilots and captains set departure times and vessel speeds to take advantage of tides and fresh water flows. Using LOADMAX, vessels can be loaded to the maximum depth allowed for a safe vessel transit.

As part of the Feasibility Study, the option of improving LOADMAX as a substitute to channel deepening was explored. Based on an analysis that included expert testimony from system users and developers, it was determined that while incremental improvements to the LOADMAX system were possible, these improvements would result in only a small fraction of the benefit derived from the three-foot deepening project.

Even though LOADMAX is not a substitute for channel deepening, the ports and Columbia River users will continue to invest in improvements to the river level forecasting system. These improvements will aid vessel loading in both the 40-foot and 43-foot channels.

Regional Port Alternatives: In the Feasibility Study, several alternatives were formulated that involved development of new port facilities closer to the mouth of the Columbia River, thereby avoiding the costs of deepening the upper part of the river.

Two alternatives examined were the development of new loading facilities at either Astoria or Longview. In both cases, the cost of building new port facilities and increased inland transportation costs were found to greatly exceed the costs of the proposed deepening project. For example, the cost to develop a new container terminal along the lower Columbia River would by itself likely cost twice as much the channel deepening project, to say nothing of the cost to develop multiple new bulk grain and mineral terminals.

Two other alternatives involving the construction of "topping off" facilities were also examined and rejected for the same reasons. (Top)

What is the market position of the Columbia River in the grain trade and in the container trade?

The Columbia River is one of the world’s largest grain export systems, second in the U.S. only to the Mississippi River in size and importance. More than 40 percent of the wheat exports from the United States is shipped via Columbia River ports. More wheat is exported from Portland than any other port in the United States (perhaps the world).

The Columbia River and Portland’s position as a container port is far more modest. Portland ranks well down the list of the world’s container ports in terms of size, and has less than a three percent share of the West Coast container market. Yet, while it does not operate on the same scale as the world’s container mega-ports, Portland offers important benefits to Pacific Northwest importers and exporters as a viable container port. Deepening the Columbia River channel is critical if these benefits are to be sustained. (Top)

Is the purpose of the channel deepening project to gain competitive advantage over other U.S. ports?

No, the primary purpose of the channel deepening project is to maintain access to world markets for producers and manufacturers located through the Pacific Northwest region.

The Columbia River is already the dominant grain export port area on the U.S. West Coast. Competition in the grain trade is not with other U.S. ports, but is with other grain export regions around the world, especially Canada, Australia, and Argentina. Improvements to the Columbia River channel will allow Pacific Northwest wheat growers to remain competitive with these other exporting regions in key international markets.

Portland is a regional container port that serves a market capture area that includes Oregon and parts of Idaho and Washington. It never has been, nor will it ever be, a major container port on the scale of a Los Angeles, Oakland, or Seattle. The goal of deepening the channel is not to divert cargo away from these major ports, but rather to maintain direct steamship service to Portland and its hinterlands. (Top)

Is 43 feet deep enough?

Portland and the other sponsor ports asked Congress to limit the study of channel deepening alternatives to no more than 43-feet. This depth meets the needs of both grain and container shippers. Grain and other bulk vessels, which call at all of the ports sponsoring the channel deepening project, can receive full loads in a 43-foot channel. Many of the newer container ships can load deeper than 43 feet; much of the Columbia River’s container cargo is already carried by these large container ships. Deepening the channel will significantly reduce the channel constraint on these vessels, allowing them to load much more cargo per call. While some of these vessels will remained constrained to a minor degree even after the channel is deepened, the project will significantly improve their utilization and thereby allow Portland to remain a viable container port. Looking to the future, it is likely that new "ìmega-ships" will be deployed to service some of the world’s largest container ports. These vessels are unlikely to ever call at a regional port such as Portland, even if the channel were deepened to 45-feet or even 50-feet. The proposed 43-foot channel is not designed to make Portland a "mega-port," but to preserve Portland’s niche of providing competitive direct vessel service for regional shippers. (Top)

Has the Columbia River handled any large container ships in the past?

Yes, the Columbia River has handled the panamax and post-panamax vessels that need a deeper channel in the past. In fact, it is important to note that these vessels are currently calling Columbia River ports in large numbers and already carry a large percentage of the region’s container and grain tonnage. This is not a “build it and they will come” project; the big vessels are already here! (Top)