Our ports create jobs and economic growth in many diverse ways. They own and operate shipping terminals, marinas and docks, airports, industrial sites, railroads, and parks and recreational facilities. Some ports operate in all of these sectors, others in only one or two, but almost every Washington port pursues an aggressive program of economic development.

These programs include industrial development, infrastructure development, import/export assistance, tourism, and entrepreneurial development. Ports are willing to invest for the long-term in their communities. Ports often make significant investments in infrastructure – building facilities that will eventually house profitable businesses that reinvest in a community. But before that growth can happen, the dollars have to be invested and the risk taken by an agency willing to spend today for returns that may not be seen for many years.

Specifically, ports have the authority to:

Develop marine terminals, airports and other facilities for handling cargo and accommodating passengers
Buy and improve pieces of property for lease – or sometimes to sell – to private industry for industrial and commercial uses
Provide air and water pollution control facilities
Operate trade centers and export trading companies
Establish and operate foreign trade zones
Provide environmental enhancement, protection, and public access
Build and operate or lease out marinas and related facilities and provide public boat ramps for public use
Promote tourism as an economic stimulus within the port district

Doing Business With Washington’s Ports

Doing business with Washington’s ports is easy because although they’re public, they function much like private businesses. In fact, the Washington State Legislature has empowered port districts to build and develop facilities that create jobs. Because Washington’s ports are guided by locally elected port commissioners, they’re able to meet the specific economic development needs of their communities. And because they’re financially independent of state government and other local governments, they’re in a great position to respond rapidly to the needs of existing and prospective customers.

Industrial Development

The Washington State Legislature has also been generous in granting authority to pursue industrial development – the fastest growing segment among ports. Port districts can construct buildings and structures to accommodate virtually any type of industrial or economic activity. These facilities are generally the sort that the private sector can’t -or won’t – build or improve.

Ports also can develop the infrastructure – water and sewage systems, and roads – necessary to attract job-creating businesses. Once a facility is built, it is often leased to businesses that generate jobs in the community.

Ports also have the authority to create Industrial Development Districts (IDD) and levy a property tax of up to $0.45 per $1,000 of assessed value for up to 6 years. IDDs are a valuable source of funds for economic development within the district, which can include water, light, power and fire protection facilities and services, streets, roads, bridges, highways, waterways, tracks, rail and water transfer and terminal facilities, and other harbor and industrial improvements. Each time industrial development projects are completed at port facilities – diversifying the economies of cities and counties – employment opportunities increase, tax revenues to cities, counties and the state are increased, and communities are made stronger.

Port commissioners and staff must balance the region’s strong environmental protection goals with the reality of global competition.

Ports often operate at the interface of land and water, and are located in areas crucial to plant and animal life. In addition, many ports develop property in heavy industrial areas contaminated for generations. Ports have become adept at blending the federal, state, and local environmental mandates while recognizing the need for economic development. Some ports have invested heavily in environmental cleanups, preparing areas for future development.

Dam Breaching

Many of Washington’s native salmon runs have been listed as either threatened or endangered under the federal Endangered Species Act. Indeed, some of the first salmon listed under the act were runs native to the Snake River. Residents of the region have been debating for years how to best protect and revitalize the salmon runs while allowing the livelihoods dependent on them to continue. A solution frequently offered is the breaching of some dams along the Snake River.
Breaching the dams would certainly destroy the livelihoods of the communities and people who depend on the water, navigation and power they provide. It would virtually end the ports serving the Snake River. But it might not help the salmon at all – experts are divided as to how much, if any, relief it would provide.
Most of the agricultural goods grown in the inland Northwest are barged down the Snake River to markets across the nation and globe. If barge navigation were stopped – as it would be by dam breaching – it would take an additional 120,000 rail cars to move that cargo to market. Washington’s rail system is currently at capacity; it simply couldn’t absorb that type of increase. And some areas are not adequately served by rail. Truck movement isn’t viable either: it would take 700,000 more semi-trucks to move that amount of cargo, placing unacceptable burdens on the state’s highways.
Salmon recovery is important to Washington – no doubt about it. But so is getting goods to market, and barge travel is a crucial component of Washington trade. It’s imperative that a solution be found that protects both environment and economy.

Dredging

Almost all ports with deep-draft navigation need to dredge sediments in order to maintain navigation. Many of our nation’s navigation channels are considered to be so critical to national interests that they are dredged with help from the US Army Corps of Engineers. Other areas, including berthing areas such as piers and marinas, are dredged solely by the port authority in question.
The dredging and disposal of sediment materials is one of the most closely regulated activities in environmental protection. Each dredging project is reviewed by federal, state and local authorities, and those reviews examine the need and justification for the project. Ports must thoroughly test any sediment that will be dredged, determining if any contamination in the sediment poses a threat to human health and the environment.
If sediment is clean, it can be disposed of at an approved open-water site or used for beach nourishment or habitat creation. If it’s not clean, then it must be placed in a confined disposal facility where it can be isolated from the environment.

Ballast Water

As global trade increases and ships from all over the world call at Washington’s ports, invasive species can sometimes be accidentally introduced into a harbor through a ship’s ballast water. These species sometimes thrive in the new environment, crowding out the native plants and animals.
Our state is blessed with a bounty of sensitive native aquatic species that live in the Columbia River, along the coast, and in Puget Sound. When an ocean-going vessel arrives at a port, it may discharge ballast water picked up in a faraway port of call, pumped in to counterbalance the weight of cargo and prevent the vessel from rolling or breaking in half. If invasive species are in that water, they can rapidly gain a foothold in the new environment and spread.
To prevent these invasions, vessels calling at Washington ports are advised to perform “open ocean” ballast water exchange. A vessel pumps out ballast water in the open ocean, replacing it with water found at sea. Sometimes, severe weather prevents a ship from performing this kind of exchange – high seas pose too much danger for ships to complete the maneuver. In addition, some ships still operate with outdated technology that prevents it from exchanging water in the open sea.
Port staff members and agency personnel continue to research ways to prevent the introduction of invasive species into our waters.

Habitat Protection

Development, particularly in sensitive shoreline areas, can have significant impact on marine or freshwater aquatic habitats. Any project that calls for development of shoreline property goes through a rigorous environmental review from the US Army Corps of Engineers, the Environmental Protection Agency, the National Marine Fisheries Service, the Washington Department of Ecology, and the Washington Department of Fish and Wildlife. These agencies (and sometimes others) require that any habitat lost because of shoreline development be replaced completely.
Because most ports are in urban areas, the shoreline habitats affected by port development are often already degraded. When that is the case, ports have the opportunity to improve an estuary or riverine area by restoring or creating new natural areas where they are most needed. Careful planning in conjunction with tribes and agencies can often improve habitats in urban areas while also improving port facilities and creating new jobs.

Harbor Cleanups

Many ports operate at the bottom of river basins, in the estuaries and along the shorelines of major rivers. Consequently, as sources of pollution move downstream they often collect in the sediments of our harbors. Sediments have also been contaminated by the industrial land uses that historically exist around cities.
Washington’s ports have become leaders in cleaning up these contaminated sediments. When ports dredge up sediment for shoreline development or to improve harbor navigation, they follow strict cleanup requirements. Contaminated sediments are disposed of in special containment areas either along the shoreline or in landfills – resulting in a cleaner harbor.
Ports have completed many successful cleanups, including:

Elliott Bay

In 1985, the Port of Seattle created a confined disposal facility at the north end of Elliott Bay, behind the twin piers. Sediments contaminated with PAHs, PCBs and metals (such as lead) were placed behind a protective berm and capped with asphalt. Monitoring wells were placed around this site, and have proven that no contaminants moved out of the site since then.

In addition, the Port of Seattle built the Bell Harbor Marina on Seattle’s central waterfront in 1994. Some of this area was capped with a layer of clean sediment, and strips of cobble rock were added to enhance the habitat of the area. Monitoring to date shows that contaminants are not moving, and the area is being recolonized by marine life.

Port Gardner Bay

In 1996, the Port of Everett dredged contaminated sediments from the Everett berthing areas, and placed them behind a protective berm on the Everett waterfront. These sediments were contaminated with PAHs and hydrocarbons, mostly from storm water sources. Monitoring and modeling of the site shows no migration of contamination. Because of this successful cleanup, the Port of Everett has now embarked on an ambitious redevelopment project of the historic waterfront, bringing new jobs and development to a once struggling area.

Commencement Bay

In 1994, the Port of Tacoma dredged contaminated sediments from the Sitcum and Blair Waterways in Tacoma, placing them behind a protective berm in the Milwaukee Waterway. The sediments were then capped and fish habitat at the mouth of the waterway was restored.

Since then, the Port of Tacoma has continued dredging efforts in both waterways, capping contaminated sediments in approved sites and maintaining the health of the waterways.

Bellingham Bay

In 2005, the Port of Bellingham embarked on an ambitious project to clean and redevelop the former Georgia Pacific property. When completed, sediments contaminated by decades of industrial use will be disposed of and the waterfront will feature new business, industrial, and residential development.

Permit Information

The Washington State Office of Regulatory Assistance offers an online permit assistance program (OPAS) designed to help agencies and individuals navigate the many permits required when developing or improving property or facilities in Washington State. To access the site, please visit: http://www.ora.wa.gov/default.asp.

Coal Shipments

The Issue:

Proposals to site coal export terminals in the Pacific Northwest have resulted in vocal opposition by local communities and environmental groups. The concerns include the construction and development of the terminals themselves, perceived impacts to rail capacity, environmental effects, traffic delays, and overall quality of life. Subsequently, these groups have submitted comments to various agencies requesting a programmatic or area-wide environmental impact study (EIS) of all proposed sites in the Pacific Northwest. With proper investment, WPPA is confident of our region’s ability to accommodate anticipated increased rail shipments of all cargoes. Our trade forecasts are bullish, and requiring a programmatic EIS on this issue is an unwarranted precedent in the most trade-dependent state in the nation.

Broader effects of a programmatic or area-wide EIS:

Currently interest groups are requesting a programmatic EIS only for bulk coal shipments, but it is legally difficult to distinguish coal from other kinds of cargo. Many bulk products are shipped using similar methods, over similar distances, impacting similar communities. Requiring a programmatic EIS for coal shipments opens up the possibility of requiring such an EIS for all cargoes. This would result in less efficient movement of cargo in general, which means less business investment, fewer jobs, and increased negative economic impacts including a loss of tax revenues for state and local governments. The movement of goods, no matter the commodity being moved, creates the economic basis that stimulates investments in roads, rail, and other basic infrastructure. An overly burdensome environmental analysis creates inefficiencies that jeopardize these investments.

Washington Public Ports Position:
Analysis of potential cumulative impacts is a component of the SEPA and NEPA review of all freight infrastructure projects. However, this has never been interpreted to require an analysis that stretches to include the production of the product; it’s transportation to markets, and its ultimate use. Requiring such an analysis, as part of either a programmatic or project-specific EIS, would be unprecedented and highly detrimental to the development of freight infrastructure and to Washington’s trade-based economy. WPPA supports limiting analyses to the potential impacts of the project itself, not the broad overall movement of cargo across a region.

Rail capacity:

Opponents of the coal export terminals assert that the resulting increase in freight rail traffic will cause a shortage of capacity for other types of cargo. Our studies indicate that overall freight movement will increase on our rail system, and that near-term our state’s rail capacity is adequate, even with the addition of coal trains.

However, there are a number of critical rail improvement projects around the state that are important to support desired growth in our overall trade-dependent economy, whether or not significant increases in the rail transport of coal across Washington occur. These projects need increased investment from railroads, the state, ports and others in order to grow capacity, and meet our forecasts for increased trade in a variety of cargoes.

Washington Public Ports Position:
WPPA agrees that rail infrastructure should be improved, where needed, to keep cargo moving efficiently. WPPA supports continued investment by ports, railroads, and agencies such as the Freight Mobility Strategic Investment Board and WSDOT in grade crossing and rail system improvements.

Quality of life in our local communities:

Concerns about the disruption of train crossings to local communities are warranted and should be addressed. The length and number of trains will certainly result in longer wait times at at-grade crossings. Significant increased investment in overpasses and other grade-separations, as well as operational changes, will be needed in some communities.

Some groups have raised concerns about coal dust blowing off passing trains. The railroads and shippers must demonstrate to our regulatory agencies how coal dust impacts will be minimized, and kept at levels that are safe for our citizens.

Washington Public Ports Position:
WPPA believes that, where feasible and appropriate, railroads should make operational changes and improvements to overpasses and reduce at-grade crossings in order to avoid disruptions in local communities.

Concerns about issues such as coal dust should be studied by environmental regulators. Should impacts be found, they should be addressed and mitigated by the coal shippers and railroads.

Goods travel via one of four modes of transportation: road, rail, water, and air. One of the more enduring images of cargo is the container ship – the large vessels that bring goods to and from our European and Asian trading partners. But once the container arrives, what then? How do we move the 70% of imports that are destined for points south and east of the state?.

Water – Washington’s Ocean Highway

Washington has 11 deep-draft ports, a tremendous asset for the state’s economy. Seven of these ports are on Puget Sound – the largest of them, the Ports of Seattle and Tacoma, together comprise the second largest load center in the nation, behind the complex at Los Angeles/Long Beach. One deep-draft port, the Port of Grays Harbor, is located on the coast; and three are located on the Columbia River. Together, these ports create a seamless network that send our goods to a global market, and import goods from other countries, bound for Washington stores.

The Columbia/Snake River system stretches 365 miles inland from the Pacific Ocean. The three deep-draft ports along this system, Longview, Kalama, and Vancouver, are major shipping centers for the state. Upstream, the Ports of Klickitat, Pasco, Kennewick, and Benton are served by barge along the Columbia. The Ports of Whitman County, Walla Walla, and Clarkston are served by barge along the Snake River.

Road – Crucial for Cargo and Customers Alike

Washington handles 7% of US exports and 6% of US imports – all of that cargo sometimes puts a strain on roads already crowded with commuter traffic. The rapid growth in trade has coincided with the rapid growth of cars on the roadway – leading to frustration for drivers and shippers alike.

Government agencies are working at all levels – federal, state, and local – to determine the best solutions for each region of the state. The demands on roads in the Puget Sound region differ from those in the agricultural regions of Eastern Washington; and those differ from the particular problems in Southwest Washington. But one theme is constant: as trade and population grows, our road infrastructure must be improved to meet the increasing demands.

Truck traffic from Puget Sound ports is expected to grow considerably in the next 15 years, reaching 1.7 million loaded trucks on I-5 in 2020. Preparing for such significant growth requires insightful, thorough strategic planning.

Several cooperative efforts are underway to address the problem. The Freight Mobility Strategic Investment Board, or FMSIB, was established to prioritize and oversee state and local projects. And several coalitions have been formed in the Puget Sound region to address worsening traffic in that area. The Freight Action Strategy for the Everett-Seattle-Tacoma Corridor, or FAST Corridor, exists to improve freight mobility problems along that section of I-5, focusing on the points where goods are transferred between rail yards and ports, or where roads and railroad tracks intersect – where bottlenecks frequently form.

Rail – the Fast Track for Cargo

Rail has sometimes been called “the forgotten mode” – as passenger rail travel has declined, its importance in the nation’s economy is sometimes overshadowed by road and air. But rail is a critical component in our state’s freight mobility system.

In the past few years, federal, state and local agencies have begun studying how Washington can best improve the state’s rail infrastructure. The Washington State Department of Transportation (WSDOT) is currently completing an analysis of the existing rail stock and forecasting what changes must be made to accommodate the increase in rail traffic expected by 2020. By that time, rail traffic is expected to exceed truck traffic throughout the state, particularly in the Puget Sound region. Puget Sound ports rail traffic is forecasted to exceed truck traffic by nearly four percent within 15 years.

Air – Washington Goods, Taking Flight

Washington’s ports own or operate 31 airports, the majority of those used for commercial service in the state. Besides moving people, airports are an integral link in the freight mobility system.

The state’s largest airport, Seattle-Tacoma International Airport, has seen tremendous growth in air cargo, averaging seven percent growth each year. International freight has grown even more rapidly. And while tonnage traffic is not typically reported by national trends will indicate that air cargo traffic will increase up to eight percent in years to come.

We’ve all heard that land is a good investment because they’re not making more of it. It’s the finite nature of the resource that makes land use planning to difficult. Waterfront property is in particularly high demand in Washington. Shorelines are precious for many reasons: we want them for recreation; we like them for residences; and we need them for industry.

Washington has seven deep-draft ports -- and container port can only exist in a deep harbor. That’s why it’s crucial to protect industrial lands near shorelines, and ensure that we protect those economic engines for future generations.

Land use is also complicated by the need to protect our environment. Washington State has several different statutes that govern how land can be zoned or used, and how communities must govern growth. In addition, federal agencies and local jurisdictions also have authority to govern land use.

Recently, seaports marked fifty years of containerization. Before the advent of the box, all cargo was considered breakbulk cargo – the goods themselves, unfettered, were loaded on and off of ships by longshoremen, the men who stood “along the shore” while ships pulled into the harbor.

Now, marine cargo comes in three forms: containerized, breakbulk (items like cars or heavy equipment) and bulk, such as grain. Most cargo comes in boxes these days. Seaports measure the amount of cargo coming across their terminals in TEUs – twenty-foot equivalent units. Most of the containers you see now are actually forty-foot containers, so each FEU is measured as two TEUs.

But breakbulk and bulk cargoes are still going strong as well. Several ports have imported large wind turbines in recent years, an excellent example of how breakbulk cargo is still important to local ports. And of course, ports along the Columbia River and the coast are important in the movement of grains to and from terminals.

For further insight, view the Marine Cargo Forecast for Washington State.

Transportation in any state is a complicated issue – populations in urban areas are increasing, more people are commuting 30 miles or more to work, many of the goods we eat and buy are shipped via truck or rail from other parts of the world, and many communities are driving on roads designed for far fewer people.

Without an efficient transportation system, a port is unable to grow: goods must be able to reach their destination quickly and efficiently. Most retailers now utilize a “just in time” inventory system – rather than keeping a large backlog of items, they schedule them to arrive exactly when needed. And if those goods are stuck in traffic – or stuck on a rail line somewhere – the retailer can’t sell them. Imagine businesses all across the state unable to get the goods they need, and you begin to see that the transportation network is the skeleton of a state’s economy.

The Washington State Department of Transportation (WSDOT) is the primary agency for coordinating transportation improvements in the state. Because of recent legislation providing more funding for transportation improvements, WSDOT is busy with road improvements all across the state. They’re currently studying the state’s airports, determining where and when more capacity will be needed. And they’re also studying our rail stock – determining where the chief bottlenecks are in the state’s system.

Many other regional agencies contribute to the state’s transportation planning. For more information on how WSDOT and others determine transportation needs, visit www.wsdot.wa.gov.