COMMENTARY: Ensuring the continued prosperity of ports

As the USS Nimitz maneuvers into the Puget Sound Naval Shipyard, employing thousands with its maintenance work that we are so proud of, and our Governor announces plans to address “slow the erosion of our shared prosperity,” I can’t help but think our ports and shipyards are where we should focus. I listened with dismay this past week in a joint work session of the Commerce and Labor and Trade and Economic Development committees as trade groups and shippers detailed the challenges facing our ports amidst the slow-down of volume as a result of a labor dispute.

By Sen. Jan Angel

As the USS Nimitz maneuvers into the Puget Sound Naval Shipyard, employing thousands with its maintenance work that we are so proud of, and our Governor announces plans to address “slow the erosion of our shared prosperity,” I can’t help but think our ports and shipyards are where we should focus. I listened with dismay this past week in a joint work session of the Commerce and Labor and Trade and Economic Development committees as trade groups and shippers detailed the challenges facing our ports amidst the slow-down of volume as a result of a labor dispute.

This is where our state needs leadership.

Cargo at 28 west-coast ports from Canada to Mexico has been moving at half-speed while officials of the International Longshore and Warehouse Union negotiate a new master contract with the Pacific Maritime Association, which represents ports and shipping companies. The union’s previous contract expired June 30. Both sides recently requested mediation and a federal arbitrator is expected to get involved.

The longer it continues, the bigger the disadvantage for Washington firms as they compete internationally for multi-year contracts. More than 40 percent of Washington jobs depend on international trade and without this engine driving us forward we may sputter and stall. Washington’s economy is just finally recovering to stronger levels of economic growth and people are getting back to work. This bottleneck at the ports may sink us.

Apple farmers are reporting $19 million per week in lost business. An outdoors gear outfitter has lost $1.2 million to date on its own as a result of the slowdown. Darigold Farms, a major dairy provider, has lost an estimated $30 million in sales so far. Number 9 Hay, a family-owned company, has suffered $7 million in lost revenue since the beginning of November because he can’t get hay from Tacoma and Seattle to China, Japan, South Korea and Tawian. Behind all these millions in lost sales are families that are struggling. Jobs are disappearing. If the slowdown continues, companies will not be able to land long-term contracts that are so important for the lasting economic security of our families and community. This is a frightening reality!

Each year, Washington ports supply direct wages in the amount of $2.5 billion. Importers/exporters report $16.3 billion in total income. That is before figuring in the remaining 40 percent of state jobs that rely on incoming or outgoing goods. Economic output from Washington ports results in an estimated $6.8 billion in tax revenue. Would we still be Washington without this economic foundation?

Growth in our economy has filled state coffers with significant growth in revenue (8.6 percent growth) amounting to almost an additional $3 billion for the state budget, giving us the funds we need to make much needed investments in our schools and roads. If that growth crumbles, our state budget will crumble with it.

Trade groups and shippers explained how fiercely competitive it has become for Washington ports and, although we are one of the most active port areas in the world, Vancouver, BC is rapidly gaining on us. Washington businesses are competing with Asian businesses to get their goods to customers.

Improvements to other ports are shifting port traffic elsewhere. This is not the time to throw another barrier to economic growth on Washington businesses.

I feel very positive about where our economy is going in Washington and I’m very proud of the foundational role our ports and their employees play in it. That’s why I am fearful and heartbroken for those families who will suffer and those jobs that will disappear if we suffocate our growth when it is most vulnerable. The whole state will suffer if ports fail. Any tax revenue hoped to be gained out of the deal will drown with it.

If you have seen the barges lined up off the beach in Manchester like I have, you can see how this is affecting our local businesses. The next step toward a resolution requires federal involvement, but you should know that we are following this issue at the state level with great concern and readiness to do what we can to ensure the continued prosperity of our ports.

Sen. Jan Angel (R-Port Orchard) is in her fourth term representing the 26th District, which includes portions of Pierce and Kitsap counties.

 

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