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For Immediate Release

PORT COMMISSION APPROVES FINAL 2008 BUDGET

Click here to download a Budget Summary

November 27, 2007 -- VANCOUVER, Wash.-The Vancouver Port Commission today unanimously voted to approve the Final Statutory Budget for 2008. The budget totals $127.3 million, $48.9 million of which is set aside for property acquisition and $20.4 million for the West Vancouver Freight Access rail project.

It is the largest budget in the port’s history due to a commitment to capital improvements that will help the port see out its needs for phased completion of the rail project and the possible acquisition of the Alcoa-Evergreen properties located just west of the port’s existing facilities.

The port’s 2007 budget was $83.2 million, and included more than $26.6 million for capital improvements.

The commission heard 30 minutes of public input and answered questions from attendees during the public hearing about the budget.

In 2008, the port’s reprioritized development plans will begin taking shape as the “Pay As We Grow Plan,” which allows for expansion of services to existing customers and a continued effort to attract new customers to the port – from both the maritime and industrial aspects.

Development of rail infrastructure at the port is critical for existing customers of the port who have expansion needs that rely on an expanded port rail system. Potential new customers, too, have made it clear that the port’s plans for rail expansion make Vancouver a very attractive location for them to do business.

Nearly 70 percent of the cargo that moves into or out of the port currently goes by rail. By 2025, the port expects to be 80 percent rail dependent, which will allow operations to be more efficient and more environmentally responsible while also reducing the number of trucks on neighborhood roads.

To build the rail infrastructure necessary to serve customers needs appropriately, the former aluminum smelter and extrusion properties are necessary. The port’s current rail network is not sufficient for bringing unit trains (trains with 100-110 cars) into the port, which means the assembly of unit trains spills out to the Vancouver rail yard, which contributes to congestion of the system. The West Vancouver Freight Access project will also create new rail access to the port that will help reduce congestion on the BNSF Railway Company’s mainlines through Vancouver by 40 percent upon completion.

The 2008 budget reflects the Alcoa and Evergreen property purchases and the West Vancouver Freight Access project and may include a mixture of port reserves, bonds and possibly loans to finance the acquisition.

What will not happen in the near future is the development of Columbia Gateway. While the port continues to work with Paul King regarding the mitigation plans for parcels four and five, northwest of the Vancouver Lake Flushing Channel, the development of the industrial acreage on parcel three will be delayed.

The savings of postponing development of Columbia Gateway are expected to amount to $150 million. Deferred by that decision – based on projections from John Martin & Associates – are 1,500-2,000 jobs; $80 million-$90 million in income; $550 million-$600 million in business revenue; and the generation of $20 million-$30 million state and local taxes.

The 2008 Preliminary Budget was approved at a regular Commission meeting on October 13, 2007. A public budget workshop followed, where Commissioners and staff discussed details of the preliminary operating and capital budgets.

Click here to view a copy of the Budget Summary in PDF format. Copies of the budget summary are also available for review at the Port administrative office, please call (360) 693-3611.