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1 oregon s logistics advantages CONNECTING PEOPLE, PLACES & PRODUCTS

2 welcome to oregon we re open for business The partnership with Lowe s has enabled the city of Lebanon to make substantial progress toward making our industrial sites truly shovel-ready. We believe that the Lowe s distribution center project sets a pattern for others to follow and demonstrates the effectiveness of interdepartmental and intergovernmental cooperation. - John Hitt, City of Lebanon, Oregon Oregon understands the need to expedite your products to market. You want to drive both time and cost from your supply chain and increase reliability. Whether your business is conducted by land, sea, air, rivers, railways or roads, Oregon s economic development professionals will help you find solutions to your logistics needs. Logistics leaders such as Wal-Mart, Nike, Kroger/Fred Meyer, Target, Columbia Sportswear, Toyota and Lowe s rely on Oregon distribution centers to streamline their operations and boost their bottom lines. These companies suceed in Oregon because of the state s location relative to the world marketplace, excellent transportation infrastructure and investments in business development that give them a competitive edge. Oregon offers several ports two of which are international deep-draft ports as well as Portland International Airport. Portland, Oregon s largest city, is also one of the Pacific Northwest s premier freight transportation and warehousing hubs. Portland offers a number of logistics advantages: Existing warehouse capacity An abundance of project-ready property Positioning at the intersection of I-5 (north-south) and I-84 (east-west) interstate corridors An uncongested, deep-draft container port Two of the Pacific Northwest s highest-capacity transcontinental railroad main lines: Union Pacific Railroad and BNSF Railway A highly educated and skilled work force

3 oregon: We re closer than you think Oregon s transportation infrastructure and Portland s geographic location offer unmatched connectivity and time savings to international and domestic markets. ROAD: The I-5 and I-84 interstate corridors provide Oregon distribution centers easy access to truck routes less than 12 hours from the following population hubs: San Francisco, California Seattle, Washington Vancouver, Canada Boise, Idaho Major North American Railroads and Interstates Seattle Tacoma Spokane P a c i f i c O c e a n Quebec 82 Portland Eugene This enables you to reach: 13 million Northern California residents 6.2 million Washington residents 3.6 million Oregon residents 1.4 million Idaho residents Oakland Sacramento San Francisco 5 Los Angeles San Diego Mexicali B N S F U P 84 Boise Salt Lake City Phoenix Bismarck Montpelier St. Paul 75 Toronto U. S. A. Albany Boston Minneapolis 90 Providence 90 Buffalo Milwaukee Ann Arbor Chicago Detroit New York Cleveland Cheyenne Omaha Trenton Des Moines 80 Philadelphia Pittsburgh Lincoln Indianapolis 70 Denver Washington D. C. Topeka Springfield Cincinnati St. Louis Frankfort Richmond Kansas City Louisville Norfolk 25 Raleigh Santa Fe Nashville Charlotte Little Rock Oklahoma City Memphis Columbia Atlanta Dallas 95 Birmingham A t l a n t i c O c e a n 20 Jackson Jacksonville 10 Austin Houston New Orleans 75 Orlando San Antonio Tampa I n t e r s t a t e H i g h w a y s G u l f o f M e x i c o West Palm Beach Miami RAIL: With the Pacific Northwest s only river-grade access to the U.S. interior via BNSF Railway and Union Pacific Railroad, Portland boasts more daily intermodal departures to domestic locations than any other point in the Pacific Northwest. Oregon s rail advantages include: Fewer engines required on river-grade rail routes, translating to lower operating costs Union Pacific s eastbound intermodal service is faster from Portland than from Seattle or Tacoma. The Hinkle switching yard, Union Pacific s largest, is located in Hermiston, just three hours east of Portland, and serves the East/West markets. Delivery times for containers from Portland to select inland destinations are: hours to Chicago hours to Detroit hours to Minneapolis hours to New York AIR: Portland International Airport (PDX) provides nonstop passenger and cargo service to Asia, Canada, Europe and Mexico. PDX s 200-acre AirTrans Center is specially designed for air cargo and aircraft maintenance. 5 concourses, 60 gates More than 13,000,000 passengers in ,623 short tons of cargo in 2004

4 connectivity and available land 5 82 Clarkston Lewiston Longview Kelso Pasco 82 Pacif ic Ocean Portland Salem Vancouver Oregon City See Inset Woodburn The Dalles Umatilla Hermiston Boardman Pendleton (Morrow) Wal-Mart 84 La Grande Albany Target Lebanon Lowe's 5 Ridgefield Dollar Tree Eugene Bi-Mart Prineville Les Schwab Springfield Bend Tire Vancouver LG Electronics Columbia Sportswear Panasonic Nordstrom HP 84 Roseburg Oregon Hillsboro Intel Portland 84 Albertsons 205 Grants Pass Medford Klamath Falls Ashland Regional Distribution Centers 5 Nike Wilsonville GI Joe s Joes Xerox Rite Aid Clackamas Fred Meyer Oregon City Oregon s available property offers a level of connectivity to domestic and international transportation infrastructure that is simply not available at any price in other states. Oregon s Industrial Site Certification Program confirms industrial sites as project ready, a designation that means properties are ready for construction within six months or less. All certified sites have access to primary transportation networks and range in size from 30 acres to more than 700 acres. Details regarding certified sites are available at The Port of Portland s Rivergate Industrial District offers shovel-ready properties that are literally within sight of the Port s Terminal 6 ocean container terminal and intermodal yard. Ready to serve as a hub to the inland Northwest, the Columbia and Snake Rivers form the secondlargest river system in the U.S. and host a thriving container-on-barge industry used primarily for the export of upriver agricultural products. The ports of Morrow, Pasco and Umatilla have set aside thousands of acres of reasonably priced industrial property for enterprising businesses interested in taking advantage of the low-cost container-on-barge return trips for an upriver import distribution center. The Inland Northwest, comprised of the furthest inland port districts on the U.S. West Coast (Clarkston, Lewiston and Whitman County on the Idaho-Washington border), serves as a potential hub. Port facilities and services are designed to augment storage and intermodal transfers between barge, truck and rail transportation. Each port offers industrial and business park sites to accommodate your business start-up or expansion projects.

5 reliability and speed to market Kroger/Fred Meyer wanted to get away from the delays and rising costs of more congested ports. In 2004, we began transloading seasonal merchandise destined for the Midwest through Portland. Since that time, we ve avoided peak season delays, dramatically improved service reliability and reduced our costs. Based on those savings, we re continually increasing the volumes we move through the Port of Portland. Dennis Gallacher, Kroger/Fred Meyer Assistant Vice President of International Logistics Oregon s economic development practices combine shovel-ready property with efficient, high-capacity transportation infrastructure to create today s logistics advantages. Businesses that rely on these logistics advantages get their products to market quickly and affordably, while avoiding peak-season pitfalls. The Port of Portland s Terminal 6 truck gate offers considerable capacity, enabling quick turn times and flexible space.

6 port of opportunity: terminal 6 The Port of Portland s Terminal 6 is reliable, uncongested and highly productive. It may be the best-kept secret in international shipping. Jeff McEwen, Hanjin Shipping Regional Manager It seems you can t pick up an international shipping publication without seeing an article about congested West Coast ports, increased throughput charges and capacity constraints. Terminal 6 Container Facility Expansion Plan The West Coast s best-kept secret, the Port of Portland s Terminal 6, offers a competitively priced, deep-draft container port that s uncongested and strategically located near the region s transportation infrastructure. improvements; a new truck gate; and additional yard space for container storage. Service at Terminal 6 means: An on-dock intermodal rail yard served by BNSF Railway and Union Pacific Railroad Available industrial property in close proximity to its ocean container facility and intermodal rail yard for reduced drayage times Higher than average productivity levels Foreign Trade Zone status On-site U.S. Customs and Border Protection staff Average gate turn times of less than 30 minutes The Terminal 6 Improvement Project is a 10-year vision for investment in the Terminal 6 container facility. The project includes the construction of additional berth space, with additional cranes to simultaneously handle two post-panamax cargo vessels, as well as a smaller container ship or barge; intermodal rail Port of Portland/Ackroyd Photography

7 oregon invests in oregon Oregon is committed to investing in the freight transportation infrastructure necessary to ensure your business benefits from fast and efficient logistics services. ConnectOregon: In 2005, the Oregon Legislature demonstrated unwavering committment to strengthening transportation infrastructure by passing the ConnectOregon bill. ConnectOregon is a $100-million funding initiative targeting multimodal, non-highway transportation in Oregon. With the projected doubling of freight volumes in the next 10 to 20 years threatening to overload much of the West Coast s current transportation infrastructure, ConnectOregon ensures Oregon s rail, marine and air transportation infrastructures will continue to offer fast and efficient freight transportation in the future. ConnectOregon promotes and affirms continued partnerships with customers to maximize the benefits of this investment in Oregon. The Columbia River Navigation Channel Improvement Project: Each year, more than 30 million tons of cargo valued at $15 billion is shipped via the Columbia River. The project, started in 2005, will deepen the river s navigation channel from 40 to 43 feet and allow larger container and bulk ships to access Columbia River ports. The Oregon Transportation Investment Act (OTIA) is a $1.3 billion funding package for bridges on the state s highway system, many of which are on Interstate 5 and Interstate 84. During the next decade, OTIA funds will repair or replace hundreds of bridges; pave and maintain city and county road systems; improve and expand interchanges thereby adding new capacity to Oregon s highway system; and remove freight congestion statewide. The OTIA represents the state s largest highway investment since the interstate freeway system was built in the 1950s and 1960s.

8 For more information about Oregon s logistics advantages, contact: Oregon Economic and Community Development Department 775 Summer St. NE, Suite 200 Salem, OR , USA OREGON ( ) Or Port of Portland 121 NW Everett Street Portland, OR 97209, USA

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