Kotek says her support for container shipping ‘has not wavered’

Published 10:15 am Wednesday, December 4, 2024

A reach stacker moves containers at the Port of Portland’s Terminal 6 in this file photo. Oregon Gov. Tina Kotek says her support for container shipping at the facility “has not wavered,” with $35 million in investments included in her proposed budget for the next biennium.

Oregon Gov. Tina Kotek says her support for container shipping at the Port of Portland “has not wavered” even if lawmakers don’t soon vote on $5 million to sustain such operations.

“I am staying the course, I just wanted to be clear on that,” Kotek said during a roundtable interview with reporters on Tuesday.

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Earlier this year, Kotek vowed to ask lawmakers for $40 million to help shore up container shipping at the Terminal 6, including $5 million to support short-term operations.

The port had been planning to shut down container shipping at the facility due to deepening financial losses but reversed that decision after Kotek made her commitment.

However, the Joint Legislative Emergency Board decided against voting on the $5 million to sustain operations during its most recent meeting in September.

At the time, lawmakers said they needed to preserve funds for fighting wildfires and other expenses and delayed the vote until the board’s next meeting in December, with some raising doubts about the value of the investment.

Now, it appears uncertain that lawmakers will vote on the $5 million this month after all, though Kotek said the issue could be revived in 2025.

“It would clearly be better if there were a commitment from the legislative leaders to do the $5 million now, but I don’t think it completely undermines the progress,” she said. “Hopefully, they will reconsider, but if not, there will be an opportunity early in the legislative session to come back on the $5 million.”

Kotek said she’s been focused on discussions about paying for the 2024 wildfire season, which will be the subject of a Dec. 12 special legislative session, and hasn’t recently discussed whether the Emergency Board will vote on the $5 million with House and Senate leaders.

“I hope they do. I think it would be a good next step,” Kotek said.

Rep. Shelly Boshart-Davis, R-Albany, a strong supporter of keeping container shipping operational for agricultural exporters, said the Emergency Board does plan to meet this month but the $5 million isn’t currently on the agenda.

However, she said that’s because available funding was needed for firefighting costs and the relevant paperwork for the container shipping investment wasn’t submitted to the board.

“It’s not about confidence. It’s about availability of funds,” Boshart-Davis said. “Other than one or two legislators, I’ve found that there is only support in the terminal being successful.”

Officials from the Port of Portland have told lawmakers the $5 million is needed to show ocean carriers and others that Oregon’s government is serious about keeping container shipping afloat.

Though some lawmakers spoke out in favor of the investment, others cast doubts about the prospects of container shipping at Terminal 6, given its history of financial losses and interrupted service.

While the $5 million may currently be up in the air, Kotek said she’s still included $15 million for Columbia River dredging and $20 million for capital improvements in her proposed budget for the 2025-27 biennium. Those investments are meant to improve the competitiveness of container shipping at the facility.

“In my budget, you will see the remainder of the commitment I made last spring, which is $35 million total,” she said. “I still have the show of support in my budget.”

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