Port sees profit despite a drop in activity

The Port of Vancouver is making money so far this year, despite a drop in shipping activity and the loss of a port tenant, columbian.com reported.

The port, among the largest in Washington, this week reported a midyear net operating income of $2.2 million after depreciation, up 111 percent from $1 million over the same period last year.

The increase was due, in part, to a $1.2 million federal grant received in June. The balance sheet this quarter also didn't include a $75,000 loss due to unpaid bills from former tenant Manufacturers Supply Inc., which went out of business in December.
Net assets rose $8.1 million in the second quarter this year, up 19 percent from $166 million in the first quarter to $174 million for the period ending June 30. Port assets are up 2 percent from $170 million in the same quarter last year.

"This is a pretty good picture," said Larry Paulson, the port's executive director.
Revenues from port leases and marine terminal operations were lower than expected this quarter, but were still up 20 percent to $15.4 million from $12.8 million the same period last year.

Ship counts were down 25 percent year over year, with lower demand for steel, aluminum and lumber resulting in fewer shipments. The port expects movement of those items to come back in the first quarter of 2010, depending on the long-term outlook for consumer spending.
But the port predicts revenues will exceed expectations in the next two quarters due to an unexpected increase in wind turbine shipments for Vestas, which plans to bring in an additional 90 towers starting in August. The port will handle more than 700 wind turbine towers this year for turbine manufacturers Vestas and Siemens Energy.

"Wind energy helps a lot," Paulson said.

The port will start to rack up expenses toward the end of the year, however, as construction begins on two large projects.

Permitting is nearly complete on phase one of the $5.5 million rail loop project at Terminal 5, and the port expects to start the contractor bidding process on Sept. 8.
Port managers also expect to hire a contractor this year to rebuild the $8 million Kinder Morgan bulk handling facility, which is still in the design phase. The port is relocating the facility to make way for the new rail line.

"The floodgates are about to open" for contractors, said Todd Coleman, deputy executive director at the Port of Vancouver.

The Port's total assets came to $295 million year-to-date, up more than 17 percent from $250 million for the same period last year. Liabilities were up 30 percent year over year to $120 million from $92 million. Total net assets at mid-year are $174 million, up 10 percent from $158 million for the same period last year.

(Source: Transport Weekly)