Port of Everett: A transformation takes flight

Source: Supply Chain Digital

Date :9/4/2008 4:08:52 AM

This key port in the Pacific Northwest has undergone a metamorphosis and emerged as a major player in the aerospace industry

Written by Kevin Doyle and Produced by Michael Magno

Nestled into Port Gardner Bay at the mouth of the Snohomish River on Washington’s Puget Sound, the Port of Everett is in the midst of a long-running renaissance under the leadership of Executive Director John Mohr. Once a major mover of forest and agricultural products, the Port of Everett has evolved into a multi-faceted facility as it celebrates its 90th anniversary.

Port of Everett today is a breakbulk port that generates US$30 million annual revenue and is a key link in the aerospace industry supply chain, handling parts for Boeing’s wide body airplanes. As stated in its strategic plan, the company also manages the largest single-owner recreational marina on the West Coast, owns and manages a number of landside development projects, oversees environmental management programs and provides public access to waterfront trails, docks and beaches.

“We fit nicely into the economy in our area at a number of different points. We’re right in the heart of North Puget Sound for boaters and many of our residents have boats at the marina. And, we’ve been able to work our way into different industrial areas to provide good family-wage jobs for our community,” says Mohr, a 25-year veteran of the port industry in Oregon and Washington who has been at Port of Everett since 1997.

The weak US dollar has proven beneficial for port operations in the area of exports. “The economy has really been quite good for us. The marine terminals are handling a lot of heavy equipment exports to Asia,” Mohr says.

A relationship takes off

The lucrative association with Boeing began about 15 years ago and, in Mohr’s words, “is going great guns. There is quite a job growth in that area.” While Port of Everett handles some standard parts for Boeing, the preponderance are oversized units for the company’s 747, 767 and 777 aircraft. Mohr says, “since we handle 100 percent of Boeing’s oversized ocean market, that tends to be our primary focus with regard to the aerospace industry.”

Many of those parts are manufactured by Japanese companies Mitsubishi, Kawasaki and Fuji Heavy Industries, leading Port of Everett to establish a cooperation agreement with the port of Hiroshima, Japan in 2006. As the Port of Everett website explains: “The agreement, which is stronger than a sister port agreement, sets forth certain priorities for expanding liner service between the two ports, promoting the use of both the ports in the global trading community and starting a direct service of goods between Hiroshima and Everett. This cooperative agreement is the first of its kind in North America.”

Port of Everett has converted a former alumina ore handling facility into a general cement handling facility that has been leased to Lehigh Northwest Cement Company. Todd Shipyard, which works closely with the US Navy, recently bought a shipyard on Port of Everett property.

Crucial to operations is Port of Everett’s relationship with the BNSF Railways. “Their office is literally right across the street from my office. Like most railroads, they have capacity issues, so that’s a continuing conversation. However, they’re doing everything they can to move more cargo through and it’s a good relationship. Just like every deepwater port, the railroad is a critical link in the infrastructure,” says Mohr.

Enhanced security

Mohr – who sits on the Board of Directors for the American Association of Port Authorities (AAPA) – says the Port of Everett has upgraded security technology across the board. The recent installation of a closed circuit camera system has been a valuable asset in detecting trespassers and vandals.

Starting soon, all POE workers who have unescorted access to the shipping terminals, must have a Transportation Identification Worker Card (TWIC card). Improved communications systems will provide better coordination between security and operational staff and advances in key and lock systems, once installed, will allow the Port to track when individuals enter restricted areas and control access to all areas via electronic codes. Finally, with the assistance of new detection technologies, US Customs, in cooperation with the Port, will be able to monitor overseas cargo coming through the port for the presence of radioactive materials.

“We work really closely with the Coast Guard and we have received a number of grants from TSA to upgrade and harden our facility,” Mohr says. “We have limited access fences, cameras and radiational portal monitoring coming soon. Customs and Border Protection were very aggressive in working with the Port to develop these programs and measures.”

Looking ahead

Port of Everett has in place an ambitious Marine Terminals Master Plan that sets the blueprint for future growth at its shipping terminals. The plan was developed by Westmar of Vancouver, British Columbia. Port staff and its consultant team held numerous public meetings seeking feedback on the various proposals put forth.

Mohr says that the Port is moving forward with its marketing efforts to add another 1,000 linear feet of dock space on the southern side of the facility that will accommodate Panamax vessels. “This plan is ideally suited for the Port of Everett’s size. It allows us to grow with our customers and also market to additional shipping lines that may be interested in serving Everett,” says Carl Wollebek, the Port’s Chief of Operations.

Planning is also under way for the US$400 million redevelopment and conversion of a former industrial property into a new waterfront residential and mixed-use community.

Environmental stewards

“Port colors have gone from blue to green world-wide. We have a history and commitment to environmental excellence, especially with our environmental mitigation strategies. Our staff is able to accomplish a lot with limited resources and go the extra mile to be responsible stewards of the waterfront,” says Mohr.

The Port of Everett recently graduated from the Second Flight of the Environmental Management System (EMS), which is endorsed by the U.S. Environmental Protection Agency. An EMS is a management of processes and procedures that allow an organization to evaluate, control and reduce the environmental impacts of its activities, products and services and operate with greater efficiency and control.

Additionally, POE has embarked on a plan to purchase clean diesel and hybrid vehicles and electric cargo handling equipment. When POE needed a new crane for the Mount Baker Terminal, Mohr says “we decided to go invest in the clean energy, even though it is more expensive.”

POE has also taken habitat restoration to the next level and, as part of an EPA program, have established mitigation banks to sell credits to other industries and transportation facilities. The port has instituted air quality programs to measure emissions and, Mohr says, “our marina is also considered a clean marina in regards to water quality.”

Issues and concerns

As a member of the AAPA’s Board, Mohr is fully aware of the challenges facing the industry. For example, though the AAPA has been successful in generating TSA grants for its members, Mohr notes that those awards “cover infrastructure but not the costs of operations.”

Though POE is a natural deepwater facility, Mohr points out that “we have a river channel that we are responsible for maintaining.” The AAPA advocates proper funding for the US Army Corps of Engineers, which is responsible for channel widening and maintenance throughout the country.

“We don’t stand by ourselves. We have to have a strong port system in order for the US to remain competitive,” Mohr says.

People and training

Port of Everett relies on union labor at its terminals, working directly with either the ILWU or contract stevedores. The Port itself has approximately 120 full- and part-time employees, 20 percent of whom are administrative staff. Mohr says a large number work at the marina and that the organization’s average tenure is 20-plus years.

“We use local training programs and have access to the colleges and universities in the area. We have a tuition reimbursement program for technical training up through Masters level programs. We like to do organic development and grow our own management folks when we can. This is a great place to be and to work,” Mohr concludes.