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
MARINE TRANSPORTATION
TRANSPORTATION NON-MARINE
NON-MARINE
TRANSPORTATION
TRANSPORTATION
Deep
Deep Draft
Draft Cargo
Cargo
Aviation
Aviation
Shallow
Shallow Draft
Draft Cargo
Cargo
Toll
Toll Bridge
Bridge Ownership/Ops.
Ownership/Ops.
TOURISM
TOURISM AND
AND RECREATION
RECREATION Railroad
Railroad
Marinas Ownership/Operation
Ownership/Operation
Marinas and
and Boat
Boat Launches
Launches
Park
Park Facilities
Facilities
Sport
Sport Fishing
Fishing LAND
LAND DEVELOPMENT
DEVELOPMENT AND
AND USE
USE
Cruise
Cruise Ships
Ships and
and Vessels
Vessels Economic
Economic Development
Development Facilitation
Facilitation
Tour
Tour Boats
Boats and
and Pleasure
Pleasure Craft
Craft Marine
Marine Oriented
Oriented Industrial
Industrial
RV
RV Parks
Parks Dry
Dry Land
Land Industrial
Industrial and
and Utilities
Utilities
Eco-Tourism
Eco-Tourism Rail-served
Rail-served uses
uses
Water
Water Oriented
Oriented Commercial
Commercial
OTHER
OTHER MARINE
MARINE FACILITIES
FACILITIES Seafood
Seafood Processing
Processing
AND
AND SERVICES
SERVICES
Boat/Ship
Boat/Ship Building
Building and
and Repair
Repair
Commercial
Commercial Fishing
Fishing
Special
Special Purpose
Purpose Utility
Utility Docks
Docks
Institutional:
Institutional: Marine
Marine Science,
Science,
Dredge
Dredge Home
Home Port,
Port, other
other 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 What the State Gets
Program elevated at
OBDD to level Formal Business
commensurate with Relationship
new relationship With Each Port

Funding Tied to
Coordinated Priorities, Business
Funding Programs Relationship; ROI and
ability to maintain
and operate capital
State Advocacy and facilities
Support on Business
Development,
Permitting, Regulatory, Port commitment to
Legislative Matters compliance with
state, federal
directives

State-supported
training and Port accountability on
certification programs 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:  New Strategic 
New Program:  Small/Mid-size
Contingency Fund 
Larger Ports  Ports Development
Fund Mechanism 
Development Fund 
Administered by IFA Coordinated by IFA
Administered by IFA
and Governor

9Separate biennial budget

for grants
9Tailored to larger, marine
transportation related
projects, $1-$10M
9Requires match up to 50%
on sliding scale
9Criteria tailored to return on
investment: job
creation/retention, key
industries/markets ID’d by
OBDD, economic value
9Ports must cover ongoing
O&M costs
9Separate biennial budget
for grants
9Tailored to small, midsize
projects, recreation or marine
transportation, $250K - $2M
9Criteria tailored to non-
transportation benefits such
as regional economic impact
(jobs, commercial fishing,
etc.), recreation/marinas
9Special funding for large
“blue sky” opportunities
(e.g. >$10M) or emergencies
Existing
ConnectOregon, 
Port Revolving Fund 
& Planning/Mktg. 
Grant Programs 
Remain
9Ports continue to be eligible
for ConnectOregon 17
DISCUSSION