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Study shows that Portland’s container terminals save regional shippers millions of dollars. 06/28/00 Port of Portland Steve Johnson (503) 944-7054 A new study performed for the Port of Portland by HDR Engineering Inc., in association with John Martin & Associates, shows that regional firms using the Port’s ocean container shipping facilities save an estimated $67.9 million each year in transportation costs versus using out-of-state container ports, such as Seattle, Tacoma, Oakland and Los Angeles. Bob Hrdlicka, Port of Portland marine director, said the Port commissioned the Container Transportation Cost Benefit Analysis to measure how well the Port was meeting one aspect of its mission—providing competitive access to world markets for regional firms that import and export products in ocean shipping containers. “The Port contracted with HDR to develop a model that estimates the net benefit to regional shippers from being able to import and export their containerized products through Portland,” said Hrdlicka. “The model HDR developed compares the transportation costs faced by these businesses today with the costs they would face using their least expensive shipping option in the absence of a Portland service. The study clearly shows that area companies involved in international trade would have to pay millions more per year in transportation costs if they didn’t have our seaport container facilities available to them.” The HDR report noted that Oregon importers and exporters save almost $53 million per year due to the Port’s container terminals, while Washington shippers save about $5.4 million. Idaho firms involved in international trade realize savings of nearly $5.1 million annually. About $5 million in transportation savings is also realized for firms located elsewhere in the country, such as the Midwest and East Coast, due primarily to Portland’s geography. The Columbia River route, which cuts through the Cascade Mountains rather than going over them, offers the lowest elevation east-west route to Portland, thus the most fuel-efficient means for westbound trains and trucks to reach a Northwest seaport location. The Port’s 150-acre Terminal 6, located along the south shore of the Columbia River across from Hayden Island, and its 49-acre Terminal 2, on the west shore of the Willamette River across from Swan Island, both handle ocean-going container ships. Terminal 6 also handles containers moved on river barges from inland ports as far away as Lewiston, Idaho. Overall, the Port’s “capture area” for regional container cargo covers all of Oregon and southern Washington, as well as most of Idaho and the southwest section of Montana. An interesting aspect of the HDR study, said Hrdlicka, was that the Port’s container terminals also offer reduced transportation costs to local companies which ship their products through Puget Sound ports. That’s because steamship lines calling Seattle and Tacoma are often willing to absorb the ground transportation costs of moving cargo from Portland’s “capture area” in order to compete for that business. If the Port of Portland’s facilities didn’t exist, those steamship lines would have no incentive to pay for trucking or railing cargo to Seattle/Tacoma that is tributary to Portland. Without the Port of Portland’s competing container facilities, local farmers, retailers, manufacturers and other businesses would have to pay more for getting their goods to and from their chosen seaport. “Container shipping has dramatically and favorably changed the way we transport our products around the world,” said Hrdlicka. “In response to tremendous increases in this method of shipping, the Port continues to invest in its container terminals. The result is that Portland-area residents and companies have this mechanism to compete in international markets without incurring distribution interruptions or major penalties in high freight costs.”
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