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Economists
to review benefits of deepening Columbia channel
The
Associated Press
PORTLAND, Ore. (AP) -- The numbers used to
justify deepening the Columbia River shipping
channel by three feet are getting another look
this week by a team of economic analysts.
The U.S. Army Corps of Engineers hired two
review teams to scrutinize cost and benefit
conclusions made by the corps in supporting the
channel-deepening project.
The project entails deepening the Columbia
River shipping channel from 40 feet to 43 feet
from the Pacific Ocean to Vancouver to
accommodate larger container ships.
The cost is projected to be around $156
million. The corps estimates the project will
yield $1.50 in benefit for every $1 spent.
Some in Astoria fear the project will damage
fishing while the profits go upriver.
The seven analysts are meeting in Portland to
assess the "reasonableness" of the
economic assumptions, methodology and conclusions
made by the corps in determining the project's
worth.
The analysts include consultants from private
firms and two universities.
Monday's public meeting featured a stream of
presentations by officials from the corps and the
Port of Portland.
Corps economist Brian Shank said a deeper
channel will yield a $1.50 savings per ton
shipped on bulk cargo or about $171,534 per trip.
He said 74 percent of all container ships
calling on the Port of Portland draft between 35
feet and 38 feet deep. If the channel were
deepened, he said, 86 percent would draft between
38 feet and 41 feet by 2008. The deeper a ship's
draft, the more cargo it can carry.
Jim Dally, a senior research associate at the
Port of Portland, said the Port of Portland
currently handles 61 percent of the products that
originate within Oregon, much of southern
Washington and parts of Idaho.
The rest goes through Seattle or Tacoma.
Portland's share of that market would shrink
to 40 percent if the channel is not deepened, he
said.
The analysts challenged some of corps'
conclusions but will withhold judgments until
they see more data.
The Tuesday-through-Thursday meetings are
closed to the public.
The analysts will release a written report of
their conclusions.
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