DOUBTS are being raised as to whether the Port of Portland needs to expand given that the expansion of the Panama Canal due to be completed in 2014 poses a threat to the container business of US west coast ports.This comes as Portland Port officials continue to pursue their quest to expand on West Hayden Island despite opposition from environmentalists.
A report by The Oregonian said that according to Joe Cortright, who chaired former Governor Ted Kulongoski's Council of Economic Advisers, the port is not very crucial to the city's economy. He said the port probably does not need to expand.
"I might be overstating it a bit for effect," he was quoted as saying, "but to me, the port is a 19th-century development strategy, not a 21st-century development strategy.
"If you look at the industries that are growing rapidly, almost none of them depend on the port for growth - high tech, software, creative."
Sam Ruda director of Marine and Industrial Development for the port disagrees, highlighting that the Port of Portland leads the nation in wheat exports, with most of it bound for China.
"We are feeding China," said Mr Ruda. "We are seeing huge growth in agricultural exports to China."
The report cited economist John Mitchell as describing the Port of Portland as one of the region's "unique advantages."
"Everything comes together here, air, water, road, rail," he said. According to the report, he called the Port of Portland a major funnel for grain and other commodities, as well as auto imports. "They may not be the principal drivers of the future, but they are not going to go away," said Mr Mitchell.
According to Mr Ruda, a study in 2010 concluded that the port requires an additional 400 to 700 acres of land to meet anticipated export growth, without taking into account the emerging market for corn and soybeans.
The report said port authorities estimate that developing 350 acres of West Hayden Island would cost US$96.9 million and create 4,000 maritime jobs.
The Port of Portland handled 23.3 million tons of cargo in 2009, 14 times less than the amount handled by Singapore. The ports of Los Angeles and Long Beach handle 70 per cent of the container traffic on the US west coast. Portland has one container terminal, capable of holding three container ships compared to Los Angeles' eight terminals with a total capacity of 30 container ships, the report noted.
It said the "bigger challenge to Portland's container business, as well as other west coast ports, could be an expansion more than 3,500 miles away" when the Panama Canal completes its expansion in 2014.
"That might make it cheaper for Chinese shippers to travel by water through the canal and up to ports on the Gulf or the east coast, rather than to the west coast and then by truck or railroad to destinations in the Midwest," the report said.
"Economic forces are combining to favour the growth of Gulf and East Coast ports for Asian trade," it quoted Drewry Shipping Consultants Ltd as saying.
Portland continues to focus on the Bohai region of northeast China in an effort to expand the growing relationship between our two regions.
"Geographical proximity across the Pacific, coupled with logical trade patterns between our regions, lead to the natural conclusion that the state of Oregon in the US Pacific Northwest and the Bohai region in China should seek to establish stronger ties," said a port authority statement.
A report by The Oregonian said that according to Joe Cortright, who chaired former Governor Ted Kulongoski's Council of Economic Advisers, the port is not very crucial to the city's economy. He said the port probably does not need to expand.
"I might be overstating it a bit for effect," he was quoted as saying, "but to me, the port is a 19th-century development strategy, not a 21st-century development strategy.
"If you look at the industries that are growing rapidly, almost none of them depend on the port for growth - high tech, software, creative."
Sam Ruda director of Marine and Industrial Development for the port disagrees, highlighting that the Port of Portland leads the nation in wheat exports, with most of it bound for China.
"We are feeding China," said Mr Ruda. "We are seeing huge growth in agricultural exports to China."
The report cited economist John Mitchell as describing the Port of Portland as one of the region's "unique advantages."
"Everything comes together here, air, water, road, rail," he said. According to the report, he called the Port of Portland a major funnel for grain and other commodities, as well as auto imports. "They may not be the principal drivers of the future, but they are not going to go away," said Mr Mitchell.
According to Mr Ruda, a study in 2010 concluded that the port requires an additional 400 to 700 acres of land to meet anticipated export growth, without taking into account the emerging market for corn and soybeans.
The report said port authorities estimate that developing 350 acres of West Hayden Island would cost US$96.9 million and create 4,000 maritime jobs.
The Port of Portland handled 23.3 million tons of cargo in 2009, 14 times less than the amount handled by Singapore. The ports of Los Angeles and Long Beach handle 70 per cent of the container traffic on the US west coast. Portland has one container terminal, capable of holding three container ships compared to Los Angeles' eight terminals with a total capacity of 30 container ships, the report noted.
It said the "bigger challenge to Portland's container business, as well as other west coast ports, could be an expansion more than 3,500 miles away" when the Panama Canal completes its expansion in 2014.
"That might make it cheaper for Chinese shippers to travel by water through the canal and up to ports on the Gulf or the east coast, rather than to the west coast and then by truck or railroad to destinations in the Midwest," the report said.
"Economic forces are combining to favour the growth of Gulf and East Coast ports for Asian trade," it quoted Drewry Shipping Consultants Ltd as saying.
Portland continues to focus on the Bohai region of northeast China in an effort to expand the growing relationship between our two regions.
"Geographical proximity across the Pacific, coupled with logical trade patterns between our regions, lead to the natural conclusion that the state of Oregon in the US Pacific Northwest and the Bohai region in China should seek to establish stronger ties," said a port authority statement.
Source : HKSG, 09.02.11.
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