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Economics

Preserving the Region's Access to World Markets
Maintaining marine commerce by deepening the Columbia River navigation channel is critical to sustaining the region's trade-based economy.

Maritime trade has long defined our region's identity, culture and economy.

  • The Columbia River first loaded wheat on an ocean-going vessel in 1869, aboard the Helen Angier, bound for Liverpool, England. Since then, the importance of international trade has grown along with the Pacific Northwest's economy.
  • In 2004, more than 34.5 million tons of international cargo valued at more than $16.2 billion was imported and exported through Columbia River ports.
  • Columbia River shipping tonnage has tripled since the last channel improvement was authorized in 1962.
  • Cargo forecasts show trade increasing over the next 20 years.

The Pacific Northwest's international trade depends on direct access to world markets. In large part, that access is provided by the deep-draft Columbia River navigation channel. The channel keeps transportation costs down and allows more than 1,000 regional growers, producers, and manufacturers to remain competitive in global markets. The three feet of additional depth allows vessels to be more fully utilized, bringing down per unit marine transportation costs for cargo. These reduced costs will help shippers maintain and expand their participation in overseas markets by encouraging increased vessel service to the Columbia River and by lowering per unit ocean freight rates.

  • The Columbia River system is ranked third largest in the world in grain exports, which are an integral part of the region's economy.
  • Container shippers save $68 million a year by shipping their cargoes through Portland as opposed to more distant ports.

Today, the 40-foot navigation channel depth is inadequate for new, larger and more efficient ships.

  • Many of the container and bulk vessels in the world fleet calling on the Columbia River have drafts deeper than 40 feet when fully loaded.
  • Because vessels cannot load efficiently, shippers pay higher costs to transport their goods, either due to higher ocean rates or increased overland transportation costs.

The maritime industry generates family wage jobs in local communities.

  • More than 40,000 jobs are dependent on Columbia River seaport activity. These jobs pay $46,000 per year on average.

The Army Corps of Engineers' final update of the Supplemental Integrated Feasibility Report and Environmental Impact Statement (SEIS), issued in January 2003, reconfirmed that channel improvement is a good investment for the nation. 

  • The updated analysis showed that for every $1 spent, the nation gets $1.66 in return.

Economic Studies:

Container Transportation Cost-Benefit Analysis
Marine Economic Impact Study prepared by HDR Engineering and Martin Associates, December 2001.

Lower Columbia River Cargo Forecast
Low-High Forecast Final Report prepared by DRI-WEFA and BST Associates, July 2002.

The Local and Regional Impacts of the Portland Harbor
Prepared by Martin Associates, January 2001.

U.S. Army Corps of Engineers
Link to U.S. Army Corps' Web site for Economic Analyses and other publications.

For more information regarding this important project, visit the Columbia River Channel Coalition (CRCC) Web site or contact the CRCC at 503.285.6343.


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Copyright © 2008 Port of Portland. Last modified: 9/30/2005