Portland, Oregon The Distribution

1
Portland, OregonThe Distribution Logistics
Story
Portland Metro Area, April 2003Presented by the
Regional Economic Development Partners
2
Portland, Oregon
The Distribution Logistics Story
3
Portland Major Distribution Center

• International
• National
• Regional

4
Portlands a Major Center for International
Distribution
5
Major West Coast Port

• One of 6 major international maritime gateways
• 3rd largest tonnage port on the West Coast more
  than 30 million tons of cargo moving through the
  Portland harbor every year
• 3rd largest auto import port in the US
• Largest auto port on West Coast
• 2nd largest wheat export port in the US
• 2nd largest grain export area in the world

6
PortlandContainer Port

• Weekly transpacific container service by 6
  carriers
• On-dock intermodal yard
• Port-operated facility, customized services
• Expedited discharge/ delivery
• Americas only on-dock full container FTZ
• Located just five minutes from Interstate 5

Port of Portland Terminal 6
7
Portland InternationalAirport (PDX)

• Portland International Airport (PDX) is the 34th
  largest passenger airport (12M) inthe United
  States, yet ranks 26th in the nation in cargo
  volume (2001)
• Daily service from all major national integrated
  carriers and 12 passenger carriers

8
Portland Air Cargo

• Domestic all cargo carriers (including UPS,
  FedEx, DSL)
• International freighter, lower-deck service
• Korean Airlines (freighter,3 times per week to
  Seoul)
• Cargolux (freighter, 2 times per week to
  Luxembourg)
• Air China (freighter, 2 times per to Beijing,
  Shanghai)
• Lufthansa (lower deck, daily to Frankfurt)

9
Portland National Distribution Gateway
10
Portland Domestic Distribution Advantages

• The ONLY place in Pacific NW where the following
  converge
• TRUCK Crossroads of Interstate 5 and Interstate
  84
• RAIL 2 transcontinental rail lines (UPRR and
  BNSF)
• MARINE Ocean shipping
• AIR International air freighter service
• INLAND BARGING 2nd largest river system in US
  (Columbia/Snake) (465 miles)
• Regional motor freight distribution hub
• Interstate 84 corridor is the only low-level,
  year-round highway and rail route through the
  Cascade mountains, providing excellent access to
  Midwestern and Eastern markets

11
Pacific Northwest
12
PortlandTruck/Rail Access

• Hub linking major freight lanes
  (truck/intermodal/rail)
• Shorter mileage to most domestic markets than
  Puget Sound
• Columbia River Rail Advantage
• Dual track lines for both BNSF UPRR
• Only river grade rail corridor in PNW
• All UPRR cargo moving to/from Puget Sound moves
  through Portland
• More daily intermodal departures than Seattle and
  Tacoma

13
Truckload Delivery Reach
14
Major Employment Sector

• Exceeds Seattle, LA,SF and NYC in percent of
  Workforce Employed in Transportation/Distribution

Based on 2000 data. Sources State Employment
Departments
15
Metropolitan Freight CentersMajor Population
Areas

• 1st on the West Coast in value of wholesale trade
  per capita

Source Reebie TRANSEARCH and FHWA Freight
Analysis Framework Project
16
Freight Tonnage Growth Projection 2000-2020
(Tons, All Modes, All Commodities)
Located in MajorFreight Growth Area
Source FHWA Freight Analysis Framework
ProjectReebie Associates 1998 data (1st
Approximation)WEFA economic data and forecasts
17
Freight-Truck Volume
Source Reebie TRANSEARCH and FHWA Freight
Analysis Framework Project
18
Freight-Rail Volume
Source Reebie TRANSEARCH and FHWA Freight
Analysis Framework Project
19
Business Cost Advantages

• Less congestion
• Lower taxes
• Lower workers compensation rates
• Other benefits
• Attractive backhaul rates
• Incentives

20
Less Congestion Compared to Other West Coast Port
Cities
21
State Business Climate

• No Sales Tax
• No Inventory Tax
• No BO Tax (Gross Receipt Tax)
• Property Tax Limitations
• Revised Corporate Excise Tax Formula

22
Tax Structure Best on West Coast for Distribution
Operations
23
Oregon BusinessesLow Tax Burden
State of Utah Tax Commission, 2001
Additional information from the State of Utah tax
study http//tax.utah.gov/esu/BURDENS/westburd00
.html
24
Tax ComparisonDistribution Facilities
Source ECONorthwest calculated using state and
local tax rules, FY 00-01.
25
Oregon Workers Compensation

• 12 Consecutive Years of Rate Reductions (62 for
  distribution)
• Only state in the nation to do so
• 7.5 Billion Premium Savings
• Washington State 54 Increase during same period
• Rates are 50 less than in California
• National ranking in premium costs is 34th lowest
• No change in Oregons premium rate for 2003
• Washington has proposed a 40.5 general increase
• National Model Return to Work Programs
• Program Options vs. Monopolistic Plan

26
Numerous Firms Have Already Made the Decision to
Locate in or Serve Portland
27
Success Stories
28
Portland, Oregon

• Available Sites
• Available Warehouse Space

29
RivergateIndustrial District

• 2,800 acreindustrial park9.6 million sq. ft.
• of space
• 20-100 acre ready-to-develop sites available
• (rail-served and non-rail served)
• Existing warehouse space available for lease
• Quick access to interstate highway system
  domestic rail ramps

30
RivergateIndustrial District
(continued)

• Immediate accessto Port of Portlandsmarine
  containerTerminal 6 offersreduced drayage
  expense to deconsolidation/warehouse facilities
• Proximity to Portland International Airports air
  cargo facilities
• Foreign Trade Zone and Enterprise Zone benefits
• Industrial park setting, nationally recognized
  corporate tenants (Nordstrom, Columbia
  Sportswear, Trammell Crow, RREEF, Weyerhaeuser,
  Boise Cascade, Georgia Pacific)

31
PortlandInternational Center
32
PortlandInternational Center

• 450 acre business park
• Located at Portland International Airport
• Immediate access to I-205
• 20-40 acres sites available
• Distribution/light industrial space available
• Excellent location for freight forwarders,
  distributors
• Corporate tenants/services (US Customs District
  Office,US Postal Services, Yoshida Corporation,
  Exel Global Logistics, Kintetsu World Express,
  Nippon Express USA,OIA Global Logistics)

33
Service Providers

• Ocean
• Air Cargo
• Trucking
• Rail

34
Ocean CarriersCalling Portland

• Transpacific/Global
• Hyundai Merchant Marine Co., Ltd.
• American President Lines
• Mitsui OSK Lines
• K Line
• Yang Ming Marine Line
• Hanjin Shipping
• Australia/New Zealand
• Fesco
• ANZDL
• Columbus Line
• PO Nedlloyd

• Mediterranean/Latin America/Africa
• Med Pacific Express/Italia Line
• Contship
• Zim
• Italia di Nav.
• Lykes Lines
• TMM Lines
• Maersk
• Philippines/Micronesia/Far East/Samoa
• PMO Line
• Royal Micronesian Service

Updated Dec 2002
35
Air Cargo Carriers

• Daily service fromall major national integrated
  carriers and 12 passenger carriers
• Daily lower deck cargo service to Germany by
  Lufthansa

36
Major Intermodal/Truckload Carriers Serving
Portland

• Schneider National
• J.B. Hunt Transport
• Swift Transportation
• Werner Enterprises
• Inway/Landstar
• Market Transport

• U.S. Xpress
• Interstate Distributor
• Gordon Trucking
• Contract Freighters
• Crete Carrier
• Covenant

• All major IMCs and other service providers also
  have presence in Portland

Updated Dec 2002
37
Major LTL CarriersServing Portland

• Yellow Transportation
• ABF Freight System
• Roadway Express
• Con-Way Western Express
• Crescent Truck Lines
• SAIA Motor Freight

• G.I. Trucking
• Overnite Transportation
• Motor Cargo
• Watkins Motor Lines
• USF Reddaway
• FedEx Freight

Updated Dec 2002
38
Rail Providers

• Burlington Northern Santa Fe
• Union Pacific Railroad

39
Economic Development Department 1900 SW 4th Ave.,
Suite 7000, Portland, OR 97201 503-823-3342 or
email boussil_at_pdc.us www.pdc.us
You are invited to visit the Portland Region to
explore the opportunities.