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Weekly UpdatesAlaska's position on the map serves it well in times of economic fluctuation. For good and bad, the state is often isolated from trends and factors influencing the Lower 48 economy. Similarly, some might say that physical distance from central hubs of politics, population and industry has created a stand-on-its-own climate of ingenuity and innovation in the Great Land. But when it comes to ensuring the consistent availability of tangible goods, Alaska is reliant on its transportation partners--primarily in Washington State. That reliance particularly comes into play with waterborne transport. Key ports in Tacoma, Seattle and Bellingham all feed Alaska's desire for a predictable, logistical supply chain.
KISSIN' COUSINS
The waterway communities of Puget Sound and Bellingham have long enjoyed their status as a gateway to the North, serving Alaska-bound goods and passenger traffic through the last two centuries.
To analyze the modern-day economic influence of such connections, a study was commissioned in 2004: "Ties That Bind: The Enduring Economic Impact of Alaska on the Puget Sound Region." In its findings, the report suggested that Alaska funnels $4 billion per year into the Puget Sound area alone, creating more than 103,000 related jobs across several industry sectors: manufacturing, fishing, construction, transportation and various professional services. Not surprisingly, the strategic geographic sound and its wide expanse of developed ports serve as the primary hub for southbound goods from Alaska, namely fish, timber and manufactured products. In turn, Alaska serves as the Puget Sound's fifth-largest trade partner for goods produced and grown in Washington State. With cargo consistently flowing in both directions, the north-south partnership continues to thrive into its third century.
PORT OF TACOMA: ENGINE OF ECONOMY
Alaska's transportation relationship with the Port of Tacoma is long-standing. A pivotal cog in moving goods north, the port ended 2006 reporting high figures, solid growth, and a new record to tout. "In 2006, the Port of Tacoma set a new container record with 2,067,186 TEUs (Twenty-foot Equivalent Units)--a modest increase of about 4,000 TEUs over 2005's record volume," a port announcement states. Similarly, the port's non-containerized cargo ended 2006 flush, with a growth rate of 22 percent in auto imports and 11 percent growth in breakbulk cargo.
"There have been huge growth years like 2005, and there have been short periods when we took a small step back. But the underlying long-term trend has always been growth," reports Jack Fabulich. Over his three decades as a Port of Tacoma Commissioner, Fabulich has witnessed containerized cargo grow from 85,000 to nearly 2.1 million TEUs, according to the port.
This year opened on a high note already, with the Port of Tacoma announcing the completion of its 22-acre expansion of Washington United Terminals (WUT) in February. Now 102 acres, WUT includes four post-Panamax cranes and a 2,000-foot wharf, according to port material. "The facility also includes a 23-acre on-dock intermodal yard with total trackage of 16,864 feet and ramp capacity 52 doublestack rail cars. WUT is located on the 51-foot-deep Blair Waterway. Initially completed in 1999 as a 60-acre terminal, WUT was the first container terminal built on the upper Blair Waterway following the removal of a narrow drawbridge that had prevented the transit of large containerships. The port completed an $8.6 million expansion in 2001, bringing the facility to 80 acres," the agency announced.
Port officials say that, as 2006 was a time for the port to focus on increasing system-wide capacity, 2007 will also be a year of strategic planning for the future. As world trade is expected to triple by 2030, now is the time for the Port of Tacoma to plan and build to accommodate that growth. "We are a relatively small organization in a modestly sized city, yet we are consistently among the top 10 container ports in North America," says Port of Tacoma Executive Director Timothy J. Farrell.
"Over the past year, our Port Commission authorized the investment of $132 million in capital projects to lay the foundation for the future of the Port of Tacoma," said Farrell. "Our five-year capital plan calls for an investment of $336 million with the long-term objective of reaching 10 million TEUs by 2025."
Recent port projects to enhance cargo capacity include the following:
* Completion of $10.5 million in major, near-terminal rail expansion projects;
* Groundbreaking in 2006 (and subsequent completion) of a 22-acre expansion at Washington United Terminals;
* Completion of the Husky Terminal ("K" Line) redevelopment and expansion;
* Widening the Blair Waterway;
* Demolition and cleanup the 96-acre former Kaiser Smelter--future site for new marine terminal development.
ALASKANS LIKE THEIR EMERALD
A continued rising star in the transportation arena and jewel of the Emerald City, the Port of Seattle is growing its market share as the world adjusts to the innovations in transportation technology, and as labor and vessel-management in other ports overflow to those willing and available to handle the traffic.
During the years of 2004 and 2005, the Port of Seattle was reportedly the fastest-growing of the nation's container ports. The port ended 2006 enjoying an overall upward trend, according to the agency, despite some ebb and flow mid-year. "It's not exactly a rollercoaster, but you definitely have ups and downs. It's the nature of the industry," Cargo Services Manager Kent Christopher reported at the year's close. "You ride it out and keep doing what works." What works well is a continued partnership between Alaska and its cousin to the south.
The Port of Seattle includes a cross-section of facilities that map directly to Alaska's needs, enough so that the Port of Seattle's Web site emphasizes its link to the 49th State. "Marine terminals in the Seattle harbor and on the Duwamish River load goods on vessels headed to numerous cities and villages throughout Alaska's Southeast, Central, Aleutian, Western and Arctic regions. Fishermen's Terminal and Terminal 91 are home to the North Pacific fishing fleet and enable Alaska's bountiful seafood stocks to be brought to markets in a commercially viable manner. Tourism is an emerging link with Alaska, most notably illustrated by the many cruise ships departing from the Port's Bell Street Pier and Terminal 30 Cruise Facilities," the site reads, displaying a photo of an Alaska license plate. It's those latter relationships in tourism that hold some of the greatest promise, officials say.
It's not just in transportation arenas where the Port of Seattle is making headlines. In February, The Northwest Minority Business Council awarded the Port of Seattle its Government Agency of the Year Award for 2007. "Four years ago, we set a goal of awarding 10 percent of all Port contracts to local small businesses owned by disadvantaged business enterprises," said Port of Seattle Commissioner Bob Edwards. "Today, we're very close to achieving that goal and we have 551 small businesses on our roster."
BELLA BELLINGHAM
North of Seattle, Bellingham has long been known as the southern hub and passenger staging area for Alaska Marine Highway System trips north. That alone has cemented a concrete relationship with Alaskans and their visitors through the years. To many residents of the 49th state, the streets and shops of Bellingham are well familiar as the first stop en route to the Lower 48. For Southeasters, Bellingham is close enough to serve as a welcome respite from the dark, damp days or a quick vacation away. In the industrial realm, Alaska's fishermen, cargo transporters, and timber shippers have long enjoyed a relationship en route north and south with bella Bellingham and its welcome wide harbor.
Perhaps some of that port's most high-profile news of the last decade has been the development of Bellwether on the Bay, which already includes two mixed-use office buildings, a hotel and several restaurants. A total of 40 businesses have grown up in the development since its opening in 1999. Earlier this year, the port announced that the second phase of the project may move forward with two mixed-use buildings proposed by private developers.
RUSH IS ON
So it is with increasingly efficient transportation technology, faster turnaround times, and increased demand on both ends that Alaska and its port partners to the south continue the rush that started two centuries ago-a rush that continues today in the flow of goods to and from Alaska by water.
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