With the installation of a new ship loader, removal of an outmoded structure and dredging alongside the docks, Kinder Morgan’s soda ash export facility at the Port of Portland’s Terminal 4 will boost efficiency and set the stage for growth. The work is now underway, and slated to be complete in September.

Soda ash, also known as trona, is used in the manufacture of glass and detergents, and it is exported through Portland to countries around the world. It is mined in Green River, Wyoming – home of the largest known naturally occurring deposits in the world.

The high quality product arrives in Portland loaded on unit trains of over 100 cars in length, where it is then stored in a covered structure until it is loaded onto bulk cargo ships via a ship loader conveyor system. That ship loader portion of the conveyor system is being replaced by a state of the art, high capacity loader that will increase productivity and overall efficiency.

Kinder Morgan has managed soda ash export operations at Terminal 4 since 1998 – and under a different name when the mineral bulk facility was originally constructed in 1987. The product is exported by ANSAC, which stands for the American Natural Soda Ash Corporation. ANSAC is the largest soda ash exporter in the world, operating as the sales, marketing and logistics arm for three leading producers of natural soda ash in the United States.

When negotiating a 10 year lease extension with two five year options, effective January 1, 2013, Kinder Morgan committed to purchase and install the new ship loader at Terminal 4. This private investment is estimated to total $9.5 million.

In February, Port Commissioners also voted to award a $715,000 contract to Advanced American Construction, Inc., for the removal of an antiquated Dravo bulk unloader at Terminal 4 and a pair of outmoded cranes at Terminal 6. Previously used for unloading bulk products, the Dravo has not been used since the mid-1990s. On the morning of April 20, it collapsed as crews were dismantling the structure, but thankfully nobody was injured.  Removal of the massive equipment eliminates a liability and increases the usable footprint for the operation.

In September, maintenance dredging is scheduled at the ship berths to allow unimpeded access for ships leaving the terminal fully loaded. Since 2008, about 5,000 cubic yards of new sediments have accumulated to the degree that its 40-foot operating depth is close to being compromised. This work is being conducted under contract by the Port, per the Port’s lease agreement with Kinder Morgan.

These projects follow the recent completion of road and rail projects in Rivergate Industrial District, as well as hundreds of millions of dollars in private investment at port facilities up and down the Columbia/Willamette river system. The Port recently announced plans by tenants to expand facilities at the Auto Warehousing Company facility at Terminal 6 and the Columbia Grain facility at Terminal 5.

What do a dog, cheetah, camel and horse have in common? All were featured on the Port’s exhibit hall display at the Breakbulk China conference in March to represent the Port of Portland’s attributes of accessibility, agility, capacity and reliability. The display highlighted the Port’s unique selling propositions and stood out from hundreds of others predictably displaying pictures of ships and cranes.

Raising awareness and attracting interest to Portland were also the primary reasons behind sales calls that marine marketing staff conducted in Asia before and after the conference. Greg Borossay, senior manager trade and cargo development, and Steve Mickelson, marine business development manager, recently returned from a whirlwind itinerary that included Tokyo, Seoul, Tianjin, Beijing and Shanghai.

“Working closely with the Port’s overseas offices, our sales calls, meetings and marketing efforts are aimed at keeping Portland on the map and maximizing the use of our facilities,” said Mickelson. “We always look to make the most of our time as soon as our wheels touch down.”

In Tokyo and Seoul, they met with officials at “K” Line, NYK Line and the Port’s largest container carrier, Hanjin Shipping. They also visited with Hansol Paper Company and other shippers that export products to the U.S. whose cargo could be handled through Portland more competitively than other West Coast ports.

In China, Port of Tianjin officials introduced a U.S. exporter of dried distillers grain with solubles (DDGS) whose buyer is the owner of a duck farm that hatches half a million ducks per day. The DDGS is used as 15% of the feed, and it could be shipped through Portland. The Port of Tianjin also has an exchange program with the Port of Portland, and they expect to send a Port employee to Portland in the near future.

While in Beijing and Shanghai, they met with Schneider Truck Lines, which has a growing presence in China, as well as Gearbulk  and Siem Shipping. During their presentations and conversations, they focused on current opportunities at Terminal 2 as well as connections to upriver ports, which yielded interest and potential future visits to Portland.

At the Breakbulk China conference in Shanghai, the Port display helped attract over 400 attendees to talk with staff – some even had their pictures taken in front of the booth. Many at the show were cargo owners, with an emphasis on large project cargo. Since Portland is looking to attract large project cargo that could move via water to points in the U.S. and Canadian hinterland, and there were few ports in the exhibit hall, it proved to be a positive opportunity to reach the right audience.

When the Portland-based staff leaves Asia, they depend heavily upon their overseas offices in places like Tokyo, Seoul, Taipei, Hong Kong and Shanghai. Agents like Zoey Zong in Shanghai and Jackie Xu in Tianjin are increasingly working directly with customers and representing the Port year round. They maintain a consistent and meaningful presence for the Port by providing continuity between visits.

“Between our collective efforts, we’re seeing positive results,” said Mickelson.

Zoey Zong, Steve Mickelson and Jackie Xu staffing the Port booth at the Breakbulk China conference in Shanghai.

If you own a company that exports goods or services around the world and have boosted your business using federal government programs or assistance, the U.S. Small Business Administration (SBA) and Visa, Inc. want to hear from you.

Enter to win this year’s “SBA’s Visa Export Video Contest” and win up to $10,000 in prize money when you submit your company’s video. The goal of the contest is to highlight growth opportunities for small businesses and help them become successful exporters in our economy.

To participate, your company must be a small business as determined by the SBA’s size standards and must have successfully completed at least one export transaction and involving at least one federal program or service to support such transaction.

A panel of judges chosen by SBA will select five videos to be awarded cash prizes directly by Visa, Inc. – $10,000 for first place; $8,000 for second place; $6,000 for third place; $4,000 for fourth place and $2,000 for fifth place.

The videos must meet specific criteria that include duration no longer than three minutes and high-resolution format. Content should be educational, not promotional. The contest is open until April 5, 2013. Winners will be announced no later than May 31, 2013.

To register for free and enter, click here.

Portland already has a well-established reputation as ‘beervana’ for its microbreweries, foodie paradise for its restaurants and a coffee culture for its many roasters and coffeehouses. Now, Oregon is fast establishing a reputation as a world class wine producing region. This was reflected in a recent shipment through the Port of Portland.

Oregon’s largest ever export shipment of wine left through Terminal 6 in mid-February, according to the Wine Julia blog.  Bound for South Korea were 2,200 cases of Oregon Pinot Noir and Pinot Gris from four local wineries – Domaine Drouhin, Lange Estate Winery, Union Wine Company and Willakenzie Estate. This totaled about 27,000 bottles, filling two 40-foot containers.

The story doesn’t end there. Oregon is ranked fourth in the nation for agricultural production of wine grapes, with the most harvested in Yamhill, Polk, Umatilla, Jackson and Washington counties. According to the National Agricultural Statistics Service, Oregon wine grape production rose 33 percent in 2011, to a record high 41,500 tons on 17,500 harvested acres.

It would appear that the growth trend will continue, as the state’s wine industry has outpaced the economy over the past two decades. Nationally, wine exports have grown over the past three consecutive years to more than 112 million cases and $1.4 billion in revenue.

As a rapidly growing middle class in Asian markets develops a taste for Oregon wines, the state is poised to benefit greatly through exports. In 2010, Full Glass Research estimated that over $2.7 billion in economic activity and 13,518 jobs in Oregon are related directly or indirectly to wine. Like grapes on the vine, those numbers are poised to grow.

If you own your own business or know of a private sector company that has made significant contributions to improve Portland’s standing as a leader in international trade, we encourage you to apply for this year’s International Business Awards. Nominations are due Thursday, February 28, so there’s still time to apply.

Last year, ICTSI Oregon, Inc., a subsidiary of International Container Terminal Services, Inc. received the Foreign Direct Investment Business Award for its strategic efforts in international trade and containership operations. ICTSI Oregon, Inc. is responsible for container and breakbulk operations at the Port’s marine Terminal 6. Its parent company is considered one of the top five global independent terminal operators in the world.  

Other 2012 honorees included: Intel Corporation - Global Leader Award, Columbia Steel Casting Co., Inc. - Export Leader, Chris King Precision Components - Small Business Exporter and DECK monitoring - Small Business Exporter.

Please submit nominations using the online Awards Nomination Form. A designated steering committee has been selected to choose a winner for each of the four categories. Winners will be announced at an awards ceremony and scholarship dinner hosted by the Oregon Consular Corps and the City of Portland in May.

Annual International Business Awards and Scholarship Dinner

Tuesday, May 14

6 p.m. - Social hour/Registration
7 p.m. - Dinner
7:30-9 p.m. – Program

Portland Art Museum

1219 SW Park Avenue
Portland, OR 97205

For questions please contact Noah Siegel at 503.823.4125 or via email.

Visit www.portland4biz.com for event updates. 

It’s that time of year again; time to submit applications for export grants if your organization or trade association handles international export goods and development activities in the Northwest. Awards are intended to strengthen potential export sales opportunities for small businesses in Oregon.

Oregon’s State Trade and Export Promotion (STEP) program is now accepting applications for Industry Association Export Grants from industry professionals that aid in the establishment or expansion of export operations through small sector businesses.

The Oregon STEP program will award grants of up to $5,000 each to as many as six individual industry cluster organizations or trade associations to support the organization and international trade development, as well as trade show delegation to include Oregon’s eligible small businesses that have individually enrolled in the program.

Who may apply?

This grant opportunity is open to all Oregon-headquartered industry cluster organizations or trade associations that meet the following criteria:

• Organization is a legally formed non-profit organization or a legally formed association which is registered to conduct business in Oregon.
• At least 75 percent of the organization’s membership must be Oregon-headquartered, traded sector companies (companies that sell some portion of goods and services outside of the state of Oregon).
• Membership in the organization is open to companies located in any region of the state.

Project requirements:

Projects proposed by applicants must include the following elements:

• Proposed activity program must be centered on a specific trade show, mission or international business development that offers potential export opportunities for the organization’s member companies.
• The proposed delegation must include no fewer than three Oregon companies that have independently applied and been approved to receive individual STEP grants. See below for further information concerning individual STEP grants for companies.
• The specific role and activities to be conducted by the applicant organization on behalf of the participating companies must be clearly defined and described in the project proposal.

Timeline:

• The application period is open until June 28, 2013, and proposals will be considered on a rolling basis until all available funds are committed.
• Funds are available for pre-approved activities only and a grant agreement between OBDD and the recipient must be in place prior to the commencement of the activity.
• All approved activities must be completed by Friday, September 27, 2013.

How to apply:

Applicant organizations should submit completed applications via email to amanda.lowthian@state.or.us.

Related link:

Oregon’s State Trade and Export Promotion Program

Located on the north edge of the Port's Rivergate Industrial District, Terminal 5 and its 190 acres feature a rapid-handling grain elevator operated by Columbia Grain Inc.

In the dining hall aboard the New Century 1, a bronze Port of Portland maiden voyage plaque hangs on the wall, dated September 15, 2001. As one of the first vessels to call Portland in the days after the 9/11 attacks, the ship’s routing had been impacted and Port officials were not able to give a formal, customary welcoming presentation at the time.

Eleven years and approximately 750,000 miles later, Port staff was on hand to give a proper welcome when the pure car carrier returned for its 100^th voyage.  On January 25, Port terminal manager Jeff Krug joined Doug Beeber, senior vice president of Jones Stevedoring Company, Atsuo Utsumi of Fujitrans USA Inc., Koji Hirota, general manager of Toyofuji Shipping Co., and Evan Jones, vessel manager for General Steamship Corporation for a brief presentation and exchange of gifts with Captain Hiromi Shimomura.

Toyofuji Shipping Co., Ltd. was founded in 1964, and it operates as a subsidiary of Toyota Motor Corporation.  The New Century 1 is one of three Toyofuji vessels regularly calling in Portland at the Toyota Logistics Services vehicle distribution center at Terminal 4. Launched in late August 2001, alongside the New Century 2, they were the first new ships for Toyofuji in many years. They were also very innovative.

“I remember how impressed I was to see this ship firsthand when it was still being constructed in the Mitsubishi ship yard in Nagasaki, Japan,” said Beeber. “It was among the first green ships, setting a new standard with solar panels on deck, better fuel efficiency and cleaner emissions.”

Designated an “ECO” ship, the New Century 1 has since been retrofitted to comply with the new Emission Control Area standard, which requires ships to switch from bunker fuel to low sulfur fuel within 200 miles of the coastline. The vessel earned a 2011 Environmental Achievement award from the Port of Long Beach.

The New Century 1 was one of the first pure car carriers equipped to handle two-way traffic on the ramp, which speeds loading and unloading operations. Arriving from Tahara, Japan, the vessel arrived with 4,700 Toyota, Lexus and Scion vehicles on board, and 3,600 were discharged in Portland. The Port estimates a local economic benefit of $271 from each vehicle that rolls across the docks. The ship continued on to Vancouver, B.C., before turning back to Japan.

With a 12 to 16 day transpacific journey, what do the 22 crew members do to pass the time? It may be hard to believe considering constraints, but the activity of choice is basketball. Championship banners line the walls of the dining hall, and on the deck they play on a makeshift court complete with backboard, hoop and net. No response when asked what happens if the ball bounces overboard. 

There is a chance the New Century 1 could be back to celebrate its’ 200^th voyage, but considering the ship has an estimated 25 year lifespan it is unlikely to make it to 300. Toyofuji has no new ship orders on the books at this time, but new build vessels continue to increase capacity while improving efficiency and reducing fuel consumption and emissions.

“We were very glad to celebrate the 100^th voyage in Portland,” said Utsumi. “The captain and crew are always impressed by the scenery here, as well as the management, security and solid operations at the Port.”

Related Link:
New Century 1 photos slideshow

In response to ongoing financial challenges related to Terminal 6 container operations, Port Commissioners on February 13 voted 6 to 1 with one abstention, approving a $3.7 million partial rent rebate program for its terminal manager, ICTSI Oregon, to help preserve and grow Portland’s role as an international container shipping gateway. ICTSI Oregon manages the terminal under a 25-year lease – an operating model common among U.S. ports.

Sustained productivity declines resulting from labor disputes at Terminal 6 have caused operating costs to increase. Consequently, without any offset, terminal manager ICTSI Oregon must incorporate the economic impact from productivity declines into the already increasing rates charged to the container carriers calling Terminal 6.   The rebate program provides an offset to the increased operational costs caused by the productivity declines to assist ICTSI Oregon in successfully concluding contract negotiations with carriers on mutually acceptable economic terms.

No tax dollars are involved. The rent rebate, effective during the 2013 calendar year, will come directly from the $4.7 million in annual rent received from ICTSI Oregon, not to exceed $308,333 per month. The maximum rent rebate payment requires that existing container services are retained and that the carriers call at the same frequency as during 2012.  In the event that there are changes in service levels during the rebate period, the Port has the discretion to reduce payments in proportion to the service change. In addition, if labor productivity improves, then the Port will have the ability to decrease the rebate payment to ICTSI to reflect the improved productivity and decreased operating costs.

“Since 1974, the container terminal has been a mission critical part of our marine operations, and we are doing everything we can to ensure it remains that way,” said Sebastian Degens, general manager marine and terminal business development. “This is a delicate and complicated phase of a relatively new terminal lease arrangement. It is in our shared interest to ensure it is successful and that our customers have certainty of continued, reliable service through Terminal 6.”

This new program follows a carrier incentive program approved in January and related business retention efforts in 2012. While Port officials acknowledged that this response to the challenges faced at the terminal is a stopgap measure, they emphasized that it is necessary to keep the gate open and keep cargo flowing while the longer term issues are resolved.

“It is our hope that all parties involved can come together to reach resolution on the fundamental issues that have necessitated today’s action,” said Jim Carter, Commission president. “We view this as a temporary measure. Moving forward we must stay focused on long term solutions. The end game is keeping the container terminal operating and keeping the related jobs in our state and region.”

Over 1,000 businesses depend on Portland’s container terminal to get their goods to and from market. The majority are small and medium sized businesses, including a number of inland agricultural exporters. An estimated 2,149 jobs rely on the container terminal to be functional, efficient and competitive, totaling $178,549,000 in total income. 

At the Port Commission meeting, commissioners heard from: Brenda Barnes, Director of Customer Services for Allports; Kit LaBelle, Global Logistics and Sales Support Manager for Hampton Lumber; Melinda Merrill, Director of Public Affairs for Fred Meyer; and Dave Doeringsfeld, General Manager for the Port of Lewiston. They expressed support for the continued operation of Terminal 6, emphasizing the economic importance of the terminal for the logistics sector, shippers and upriver ports.

The Port of Portland is governed by a board of nine volunteer commissioners who are appointed by the governor and confirmed by the State Senate.  At the meeting, one Commissioner was absent.

In 2012, the Port of Portland's marine franchise recorded notable calendar year gains in steel and auto volumes despite disruptions related to a jurisdictional dispute and contract negotiations in the latter half of the year. While the 12.4 million tons handled last year was a decrease of about eight percent, it was also the sixth best tonnage year on record.

Auto volumes showed a gain of 21 percent with 284,138 vehicles handled last year. The double digit increase was thanks in part due to recovery from the impacts of 2011 disasters in Japan and Thailand. The increase was also attributable to the first American-made auto exports to roll across the docks in Portland since 1988, with the addition of Ford as a new customer.

Breakbulk tonnage increased by five percent from last year to nearly a million tons. This is primarily steel slab and steel rail imports, and the Port also handled barite ore used for industrial drilling and various large scale project cargo at Terminal 2.

At the container terminal, 2012 began with the addition of carrier Hamburg Süd in February and an expanded, weekly service in partnership with Hapag-Lloyd. ICTSI Oregon, Inc., the Port’s terminal operator at Terminal 6, was selected for the Mayor’s Foreign Direct Investment Business Award in May. The terminal saw a total of 183,203 containers last year, which constitutes an eight percent decrease from the previous year. 

Starting in late May, the container terminal experienced slowdowns related to a jurisdictional dispute between the International Longshore and Warehouse Union and the International Brotherhood of Electrical Workers over jobs involving the plugging, unplugging and monitoring of refrigerated containers. This is now being handled in federal court. A separate matter involving contract negotiations with Marine Security Officers was successfully resolved.

Contract negotiations between the Pacific Northwest Grain Handlers Association and the ILWU have yet to reach resolution, but the Port has no role in that process. Grain tonnage decreased by 15 percent to just over four million tons, but volumes should increase with expansion of the grain elevator at Columbia Grain’s Terminal 5 facility. This recent announcement accompanied a 25-year lease extension, and will involve an investment of approximately $40 million.

Mineral bulks – primarily potash used in fertilizer, and soda ash used in glass production – dropped by eight percent, to 4.8 million tons. The soda ash export facility at Terminal 4 will soon be home to a new, $8 million ship loader, supporting plans to boost efficiency and capacity.

Completion of South Rivergate Yard in August marked the last in a series of four major rail and road improvement projects in Rivergate Industrial District. The $11 million rail yard expansion was funded by the Port, ConnectOregon II funding, Union Pacific and BNSF Railway. Improving freight mobility and rail velocity makes the bulk facilities at marine Terminal 5 more competitive.

ConGlobal Industries moved its container depot to Rivergate in May to reduce drayage costs for customers and improve shipping operations. They were soon followed by construction of a rail-served sweetener plant for Archer Daniels Midland Company and a newly leased facility for Northwest Cascade, Inc. Other significant Rivergate leases included Exel Logistics in Bybee Lake Logistic Center, and OIA Global Logistics in Rivergate Logistics Center.

As regional studies underscore the need for more shovel-ready, large lot industrial land parcels, the Port is taking action. In October, the Troutdale Planning Commission approved a new Phase II subdivision in Troutdale Reynolds Industrial Park, adding to what will be a total of 12 lots on 314 acres. Nearby, Gresham Vista Business Park officially joined Oregon's Certified Industrial Site program to market 11 developable lots on 203 industrial acres and 17 commercial acres.

Related Links:

Marine Statistics

Properties Portfolio

Approximately $1 million may be available to specialty crop producers in Oregon as part of the U.S. Department of Agriculture’s Specialty Crop Block Grant Program for 2013. The Oregon Department of Agriculture (ODA) is accepting concept proposals for project ideas until Monday, February 19, at noon.

Oregon ranks fifth in the nation in production of specialty crops, such as fruits, vegetables, tree nuts and nursery crops. Agriculture industry associations, producer groups, processors, commodity commissions, non-profits, for profits and local government agencies in Oregon are invited to submit three-page concept proposals describing their proposed projects before the deadline.

Concept proposals may be submitted for a project within the suggested funding range of $25,000 to $100,000, and for a project timeline of up to two years. Applicants are highly encouraged to provide a dollar-for-dollar match. ODA has identified the following seven areas as the 2013 Specialty Crop Block Grant Program funding priorities:

• Market development and access

• Food safety compliance and traceability

• Efficiency of distribution systems

• Prevention and management of pests and diseases

• Training and equipping the next generation

• On-farm labor needs

• Productivity enhancements and innovation

Projects not addressing one of these identified priorities are still eligible for funding, as long as they meet all other program requirements. Funding for the program is also contingent upon federal funding for the Specialty Crop Block Grant Program.

After the top proposals are selected by an industry advisory board in March, applicants will be asked to submit full grant proposals for a second round of evaluation. Projects chosen to receive funding will be announced by November 2013.

Related Links:

ODA Specialty Crop Block Grant Program

USDA Specialty Crop Block Grant Program