Ports 2010, a New Strategic Business Plan for Oregon's Statewide Port System Presentation for Public Meetings October November, 2009 1
Welcome to Tonight s Meeting Why this meeting is important: Presentation of the recommended Strategic Plan concepts Receiving your questions, concerns, and comments Incorporating changes, ideas, and new concepts as we begin drafting the Plan Our goal is to have a draft Plan for review by Thanksgiving (after this round of public meetings have concluded)
The Mission of the Port Strategic Plan is to: Define the State of Oregon s future role, interest and investment in the statewide port system. This will be based on a realistic assessment of port markets, and economic and business development opportunities. The Plan will identify infrastructure, regulatory and governance needs of the ports, and also ways that Oregon s port system can best serve the interest of the State of Oregon, its residents and businesses
Plan Development Process
How Was the Plan Developed? Interviewed all 23 ports, OPPA, Tourism Commission, and key legislators Looked at port/state relationships in other states: WA, CA, FL, LA, IN, SC Developed short and long term economic outlook Used cargo forecasts from ODOT Freight Study Reviewed port financial reports and individual plans
What We Found and Heard 1 in 6 Oregon jobs tied to Oregon s port activities or cargo. Mixed financial condition among ports, 17 of 23 operating with negative cash flow. Funding sources are lacking and not centralized: combined maintenance & infrastructure needs > $500M Ports have diversified to respond to new or declining markets. 6
Five Primary Portfolios: Business Lines MARINE TRANSPORTATION Deep Draft Cargo Shallow Draft Cargo TOURISM AND RECREATION Marinas and Boat Launches Park Facilities Sport Fishing Cruise Ships and Vessels Tour Boats and Pleasure Craft RV Parks Eco-Tourism OTHER MARINE FACILITIES AND SERVICES Commercial Fishing Institutional: Marine Science, Dredge Home Port, other NON-MARINE TRANSPORTATION Aviation Toll Bridge Ownership/Ops. Railroad Ownership/Operation LAND DEVELOPMENT AND USE Economic Development Facilitation Marine Oriented Industrial Dry Land Industrial and Utilities Rail-served uses Water Oriented Commercial Seafood Processing Boat/Ship Building and Repair Special Purpose Utility Docks 7
What We Found and Heard Ports feel they lack advocacy and presence within the state government: agencies and legislature Use of state planning and marketing grants has been disparate and accountability has been sporadic. Rental/user fees are not recapturing full O&M and replacement costs State investment not always toward Oregon s key industries Lack of state level coordination on special opportunities, emergencies Key legislators want training for port commissioners and managers Legislators also wanting certain returns on investment and financial responsibility 8
Strengths Columbia River and Pacific Ocean as transportation corridors Coastal scenic, fishery & environmental attributes Large deep water sites at Hayden Island, St. Helens & Coos Bay but lack readiness Brownfield site opportunities at Portland (T 4) and Tongue Point (and possibly others) Stable markets: Commercial fishing (over past 5 years), property development, agriculture and food processing, bulk/auto, regional container, auto cargo, recreation, sport fishing, tour boats Opportunities: Marine sciences, eco tourism, live fish, energy (wind, wave, solar, biomass), LNG terminals 9
Challenges Small market sizes Poor coastal transportation access Limited staff resources at many small ports and in OBDD Weak institutional support from State & OPPA Ability to respond to special emergencies or opportunities (NOAA, APM terminal, rail closures) Coordinated needs list for dredging, jetty repair, navigation Deferred maintenance and ports financial status Declining or threatened markets (wood chips, commercial fish processing, international container market) Environmental: marine reserves, Snake River dam removal 10
Strategic Plan Goals Develop strategies for Ports to grow their existing business lines, including marine transportation, property development, tourism and recreation, air and surface transportation, and marine dependent facilities. Identify strategies for Oregon s ports to tap into emerging markets and respond quickly to new opportunities Organize the state s agencies and programs consistent with the goals and objectives of the Strategic Business Plan Provide educational, outreach, training, advocacy and support for Ports. Provide financing programs and investment strategies to improve the ability of Oregon s ports to pursue existing business lines and new markets 11
Strategic Plan = Business Plan Oregon s Statewide Port Strategic Plan will be a business plan between the state of Oregon and each of Oregon s Ports to: Better organize the institutional relationship between each port and the state. Ports opt in to the new program via agreements with OBDD or through funding grants Create a state port investment fund, with components based on port size and market differences, which will fund the state s highest port priorities based on need, job creation, ability to advance Oregon s key industries, and financial ability to operate and maintain the investment Establish a port oriented training program for port commissioner and managers 12
How Business Plan Would Work What the Ports Get Program elevated at OBDD to level commensurate with new relationship Coordinated Funding Programs State Advocacy and Support on Business Development, Permitting, Regulatory, Legislative Matters State-supported training and certification programs What the State Gets Formal Business Relationship With Each Port Funding Tied to Priorities, Business Relationship; ROI and ability to maintain and operate capital facilities Port commitment to compliance with state, federal directives Port accountability on use of state funds 13
Strategic Plan = Business Plan Organize a strategic response group via OBDD to organize agencies & respond to special port business opportunities or to emergency situations. Develop means test for state funding: need, market viability, ability and available funds to operate and maintain Ports issue periodic accounting reports for use of state grant funds Ports continue to be eligible for ConnectOregon funding Create a Marine Transportation mode program through ODOT and the Oregon Public Ports Association 14
What Will Go into the Business Agreement? Unique for each port Defines roles/responsibilities between the port and OBDD as a department (business development, infrastructure and ports) Expectations and framework for use of state funds and loans: uses, planning requirements/ homework, reporting & accountability Points of contact How OBDD will coordinate with other state agencies: ODOT, Marine Board, Tourism, etc. Training responsibilities and opportunities OBDD assistance on regulatory, permitting matters
New Marine Transportation Program One new staff within multimodal ODOT Freight Mobility group as marine transportation mode lead OBDD supplies a strong liaison Responsible for Marine mode of OTP Would oversee Federally identified marine highway system similar to rail highway systems Establish new Cargo Port Advisory Group (similar to OFAC) to vet cargo issues, possibly as OPPA subcommittee Discusses priorities for navigation, dredging, jetty repairs Group would meet quarterly or semi annually 16
Recommended State Led Program New Program: Larger Ports Development Fund Administered by IFA Separate biennial budget for grants Tailored to larger, marine transportation related projects, $1-$10M Requires match up to 50% on sliding scale Criteria tailored to return on investment: job creation/retention, key industries/markets ID d by OBDD, economic value Ports must cover ongoing O&M costs New Program: Small/Mid-size Ports Development Fund Administered by IFA Separate biennial budget for grants Tailored to small, midsize projects, recreation or marine transportation, $250K - $2M Criteria tailored to nontransportation benefits such as regional economic impact (jobs, commercial fishing, etc.), recreation/marinas New Strategic Contingency Fund Mechanism Coordinated by IFA and Governor Special funding for large blue sky opportunities (e.g. >$10M) or emergencies Existing ConnectOregon, Port Revolving Fund & Planning/Mktg. Grant Programs Remain Ports continue to be eligible for ConnectOregon 17
DISCUSSION