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

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

3. 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

4. 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

5. (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)

6. Port-Related Benefits Flow Chart

7. Commodity Trade Overview

8. 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.

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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
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

19. 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 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

20. Questions?
Please contact
Todd Chase, AICP, LEED