Prime Location Makes Portland a Global Powerhouse
Published Mar 24, 2008
Mount St. Helens is a backdrop for traffic on the I-405 Fremont Bridge and for nonstop flights headed for destinations in Asia, Europe and Latin America.
Overseeing 26 facilities globally, including two in Portland, ESCO Corp. Chairman and Chief Executive Officer Steve Pratt knows what makes a good location for exporters, and he says Portland possesses all the right stuff. “We have highway, air, rail and ship,” he says.
Founded in Portland in 1913, ESCO – a manufacturer of engineered metal wear parts and components for industrial applications, such as mining and construction – stepped up exports after World War II, when Europe required rebuilding and the mining and construction industries experienced a boom.
“Now with what’s going on in China, India and Brazil, there is even more exporting,” Pratt says. From Portland, the company often ships products to China, Indonesia and Australia.
Eye on Exports
ESCO is part of a growing cadre of exporters here. “We have a lot of companies looking to this region as a distribution hub for their goods, whether they are importing to their U.S. manufacturing facilities or manufacturing here for distribution,” says Doug Badger, executive director of the Pacific Northwest International Trade Association.
The region and state have always had an eye on exports, says Sam Ruda, director of marine and industrial development for the Port of Portland, which operates Columbia River and Willamette River terminals and Portland International Airport (as well as general aviation airports in Hillsboro, Troutdale and Mulino). “Whether from processed foods or basic agricultural products like seed grains, hay and seasonal fruits, we see this trend continuing and volumes growing,” Ruda says.
Portland is the third-largest auto-import gateway in the United States, and the Columbia River is the third-largest grain exporting center in the world. Other commodities traded internationally here include fertilizers, minerals, metals, machinery, and paper and paperboard.
“These products are in heavy demand,” says Josh Thomas, media relations manager of marine and industrial development for the port.
The top air cargo export by value is high technology.
Pacific Rim, Other Markets
From its strategic position in the Pacific Northwest, Portland provides excellent access to the Pacific Rim and Latin America. Between 2000 and 2006, sales to China from businesses in Oregon’s 1st Congressional District – which includes Washington County’s so-called Silicon Forest – soared 575 percent, according to a study by the U.S.-China Business Council. Overall, Oregon exports to China jumped 73 percent in 2006 to $1.39 billion, making China the state’s second-best international customer, after Canada.
In descending order of dollar value, ocean-going exports to the Far East are sent to Japan, South Korea, China, Taiwan, the Philippines and Thailand. (Egypt also ranks among the top seven.)
Vessels calling Portland will benefit from the completion of the Columbia River Channel Deepening Project in 2010, which will increase the depth of the shipping channel to 43 feet compared with 40 feet currently. More than $18 billion in goods flow along the Columbia/Snake River system each year, Thomas says.
Portland International Airport offers nonstop commercial and cargo air service to Asian, European and Latin American destinations. In fact, Air China Cargo provides flights to Beijing and Shanghai twice weekly using Boeing 747-400 aircraft, says Kama Simonds, who handles aviation media relations for the Port of Portland.
Besides China, chief recipients of Oregon products shipped by air are Malaysia, Korea, the Philippines and Taiwan.
Getting products to and from the port and the airport is easy, thanks to two transcontinental railroads; Interstate 5, a major trade corridor from Canada on the north and Mexico on the south; and I-84, which extends eastward from Portland.
The city offers plenty of support for exporters. The Pacific Northwest International Trade Association, a part of the Portland Business Alliance, holds educational seminars and invites U.S. government and foreign officials to speak. Port of Portland staff meets regularly with the upriver ports and their customers to discuss issues of mutual importance and emerging trends.
All of the advantages are having a positive effect. “There are more people exporting than ever before,” says Badger of the Pacific Northwest International Trade Association.
Story by Pam George
Photo by Jeff Adkins
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