Economic Benefits of Oregon Public Ports PNWA Annual Convention October 16, 2014 by: Todd Chase, AICP, LEED

Presentation Contents Purpose Methodology Commodity Trade Overview Impact Summary Oregon’s 23 Public Ports

Methodology Document Individual and Collective Port-Related Economic Benefits Port-related benefits: port operations, facilities and activities (including channel and basin dredging) Port tenants and related non-local visitation Identify Direct, Indirect & Induced Impacts (jobs, income, value added, output) Describe Economic Performance Benchmarks Utilize Proven & Generally Accepted methods

Key Definitions IMPLAN = IMPact for PLANining (economic input/output model) IMPLAN Sectors: up to 440 detailed industry or commodity types (i.e., sector #17 = commercial fishing) Employment: IMPLAN includes full and part-time job estimates; tends to be higher than Oregon Emp. Dept. estimates that report only “covered employment” subject to unemployment insurance taxes. Direct Impacts: jobs, output, GDP, taxes attributed to port operations, port tenants, prior port land sales, port facilities (Marina, boat launch) and port activities (dredge permitting). Indirect Impacts: business-to-business economic activity (i.e., suppliers, service inputs, such as accounting and legal firms, daycare, catering, etc.) Induced Impacts: attributed to household spending their earnings Labor Income: IMPLAN includes total payroll costs, labor income, and benefits (i.e., health benefits payments, 401-k payments) Output: annual sales/revenues less depreciation and year-end inventory Value Added or GDP: gross domestic product. Includes labor compensation, proprietor income, business profits and federal/state/local tax payments

(household consumption spending) How the IMPLAN Model Works… Direct Impacts Indirect Impacts Induced Impacts (backward linkages) (supply-chain inputs, such as utilities, supplies, parts, materials, transport. and vender services) (forward linkages) (household consumption spending) Direct spending (port operations, direct employment at port-related businesses and related visitation to port facilities)

Port-Related Benefits Flow Chart

Commodity Trade Overview

Commodity Trade Overview Oregon Ports provide the link between producers (i.e., agriculture, forest and seafood products) and manufacturing products (i.e., electronics, food and energy products) with global and domestic markets 1 in 6 jobs in Oregon are port-related Oregon Ports Strategic Plan Jobs related to exports pay 20-40% more than avg. Brookings Institute, 2010 Value of Jobs study Portland Region ranks 4th in U.S. in export value as share of Metro output in 2012). Brookings Institute, 2013.

Oregon’s Ports & Key Industries Columbia River Ports: agriculture, food/beverage processing, energy, advanced technology Port of Portland: global & domestic trading hub Agricultural Products & Outdoor Recreation Business & Trade Inputs Coastal Ports: seafood, wood products, tourism Forest Products & Outdoor Recreation

Oregon’s Port-Related Industries Port of Portland: global/domestic trade hub, advanced industrial products, agriculture, autos Columbia River Ports: agriculture, food/beverage processing, energy, advanced manufacturing, avionics Coastal Ports: commercial & recreational fishing, seafood processing, forest products, tourism Rural commodities and products throughout Oregon now rely upon Port facilities and activities (dredge permitting) to get products to markets

Port of Portland, Portland Harbor & Port of Vancouver Economic Benefits Regional analysis, not state-wide 75,800 total jobs (direct, indirect/induced) Output of $7.3 billion Labor income of $3.8 billion Annual local/state tax payments of $346 million Annual federal tax payments of $246 million $1 in port tax generates $6 in added local tax payments

Columbia River Ports [Ports of St. Helens, Cascade Locks, Hood River, The Dalles, Arlington, Morrow, Umatilla & private terminals] 20,805 total jobs in Oregon (direct, indirect/induced) Output of $3.9 billion (over half outside port GDP of $1.6 billion Labor Income of $856 million Annual local/state tax payments of $162 million Annual federal tax payments of $198 million $1 in port tax generates $32 in added local tax payments and $74 in annual state tax revenues Top job sectors: dairy cattle/milk production, farming/ranching, agriculture support activities, wholesale trade, frozen food mfg., food services

Port of Morrow: ConAgra Investment Case Study ConAgra Foods expanding frozen potato processing plant in Boardman, OR (“largest facility in the world”) Facility will add 100 permanent, family-wage jobs to Boardman economy State, Port, County and City all collaborated to facilitate this expansion Facility will receive EPA Energy Star certification Rail, barge and highway shipping availability were key factors in this investment decision

Port of St. Helens: Oregon Aero Investment Case Study Oregon Areo, based in Scappoose, produces equipment for aircraft manufacturers such as helmets, seats and headsets Areo contributes $6 M in wages in addition to subcontracts to other aviation firms in the region Port-led Improvements to Scappoose Airpark lead to a 22,000 SF expansion of Areo’s footprint. Additional space allows Areo to service larger aircraft and engage new clients

North Coast Ports [Ports of Astoria, Nehalem, Garibaldi, Tillamook Bay, Newport, Toledo, Alsea, Siuslaw & seafood producers and public harbors: Warrenton, Depoe Bay] 9,585 total jobs in Oregon (direct, indirect/induced) Output of $1.3 billion (almost half outside port counties) GDP of nearly $605 million Labor Income of $384 million Annual local/state tax payments of $58 million Annual federal tax payments of $83 million $1 in port tax generates $9 in added local tax payments and $20 in state tax payments Top job sectors: commercial fishing, food services, seafood processing, state and federal government, recreation, wholesale & retail trade

Port of Newport: NOAA Case Study National Oceanic and Atmospheric Administration moved Pacific Marine Operations Center to Newport in 2011 State, Port, County and Local funds used to fund transportation and dock infrastructure Facility accounts for nearly 200 direct full time jobs today Proximity to the OSU’s Hatfield Marine Science Center enables NOAA to collaborate with students and facility on research Spin-off ship repair businesses at Port of Toledo

South Coast Ports [Ports of Umpqua/Salmon Harbor, Coos Bay, Bandon, Port Orford, Gold Beach, Coquille River and Brookings Harbor] 5,673 total jobs in Oregon (direct, indirect/induced) Output of $666 million (almost 20% outside port counties) GDP of nearly $299 million Labor Income of $195 million Annual local/state tax payments of $30 million Annual federal tax payments of $41 million $1 in port tax generates $3 in added local tax payments and $8 in state tax payments Top job sectors: commercial fishing, food services, seafood processing, animal production, charter boats, recreation, wholesale & retail trade

Port of Coos Bay: Coos Bay Rail Link Case Study Coos Bay Rail Link connects Port of Coos Bay with Eugene and other Willamette Valley markets Line closed from 2007-2011 Port of Coos Bay lead effort to restore the rail link with funding from local, state and federal sources In 2012, Coos Bay Rail Link accounted for 30 jobs, expected to double that figure in 2013 Line expected to reduce shipping costs by 33% below current levels Line now enables manufacturers to ship from Port of Coos Bay

Port of Umpqua: Dredging Investment Case Study Wide range of businesses benefit from dredging: boat mfg., machine & fabrication; seafood processing; U.S. Coast Guard; bait & tackle; commercial & sport fishing; plus other tourist-related businesses (hotels, RVs, food, fuel, etc.) 1,297 jobs (977 direct + 320 indirect/induced ) $142 M in annual sales output $83 M in annual GDP for state $44,188 income/job in a distressed area Dredging = real measurable benefits

Questions? Please contact Todd Chase, AICP, LEED 503-841-6543