TIGER VII DISCRETIONARY GRANT APPLICATION Portland Marine Terminal Freight and Jobs Access Project

Transcription

1 TIGER VII DISCRETIONARY GRANT APPLICATION Portland Marine Terminal Freight and Jobs Access Project Multimodal Improvements to Grow Exports, Jobs, and Community Connections Project Location: Portland, Oregon Project Type: Capital Project Tiger Funding Request: $11,033,000

2 TABLE OF CONTENTS I. Project Description...1 Background... 2 Specific Challenges... 4 Addressing the Challenges... 5 II. Project Parties...9 III. Grant Funds and Sources/Use of Project Funds...10 IV. Selection Criteria...12 Primary Criteria Secondary Criteria Benefit Cost Analysis V. Project Readiness...27 VI. Planning Approvals...29 VII. Federal Wage Rate Certification...29 VIII. Letters of Support...30

3 PROJECT DESCRIPTION PROJECT NEED International trade plays a substantial role in the economic viability of Portland and the state of Oregon and in the financial success of hundreds of manufacturers and farmers throughout the Pacific Northwest and across the United States. Portland ranks twelfth among the largest 100 metro areas in the United States in terms of export value in At the state level, exports accounted for $20.9 billion in 2014, up 87 percent since Nearly half a million Oregon jobs are supported by trade. Access to one of the best multimodal transportation hubs on the West Coast, the Port of Portland Rivergate Industrial District has allowed Portland and Oregon businesses, not to mention shippers halfway across the continent, to reap benefits from efficient and cost-effective connections to domestic and international markets. Because the Port of Portland is one of the four identified top freight gateways on the West Coast, smooth and efficient freight movement at the Port affects both the local economy and the nation s export health. However, the infrastructure serving Portland s import/export hub has not kept pace with growing volumes and business needs, creating bottlenecks and safety issues for shippers, manufacturers, and workers. The result is a transportation problem that threatens to hamper Portland s ability to provide international market access for the Portland region and Oregon businesses, further constraining their ability to grow and add jobs. Given that the Port s exports include products from agricultural, electronic, and manufacturing enterprises from Oregon, Washington, Idaho, and multiple Midwestern states, the multimodal improvement project proposed here not only has many local benefits, but will also support national exports growth. The Port of Portland and City of Portland are requesting $11,033,000 in TIGER funds to construct a rail overcrossing serving a marine terminal, and provide a bike and pedestrian connection to an employment center from a low-income residential area. In addition, physical constraints at the Port s terminals create barriers to employment for one of Portland s largest low- and middle-income areas. Removal of these physical impediments will lead to increased business expansion opportunities at Port terminals, which translates into more employment opportunities and family wage jobs that promote Ladders of Opportunity. I. PROJECT DESCRIPTION The Portland Marine Terminal Freight and Jobs Access Project (Project) will directly address congestion created by an at-grade rail crossing at the entrance to the Port of Portland s Rivergate Industrial Park (Rivergate) and Terminal 5, while simultaneously providing a safe and accessible connection to jobs from Accessible by rail, highway, ocean vessel and river barge, the Port of Portland is an export gateway for North America 1 Portland Marine Terminal Freight and Jobs Access Project

4 PROJECT DESCRIPTION Project Area In the past six years, public and private investments to improve Rivergate Industrial District have totaled $409.3 million. a nearby low-income community. The largest industrial district in the City of Portland, Rivergate contains nearly half of the marine terminals, thousands of acres of industrial land, and more than three-fourths of the marine terminal acreage in the Portland Harbor. The City of Portland (City) is partnering with the Port on the Project to maximize the millions of dollars in public and private investments that have been made in the area, and to support vital exports and job growth. Without transportation infrastructure improvements to increase efficiency, safety, and mobility in Rivergate, the value of previous infrastructure investments cannot be fully realized. The two Project partners are requesting a TIGER VII discretionary grant of $11,033,000 to complete Project funding and proceed with a solution to the Rivergate Industrial District s growing transportation challenges. The Project s goal is twofold: (1) Construct a grade separation over a busy marine terminal rail lead (and associated road/intersection improvements), and (2) Complete a missing transportation link to a regional multi-use bike and pedestrian connection on North Columbia Boulevard to provide affordable access between an economically distressed neighborhood and a major industrial employment center. These project components with a total cost of $19,253,000 have been vetted with a comprehensive review of construction costs, schedules, permits, and related issues. The Project has $8,220,000 of funding in hand and is poised to begin once this final funding piece is secured. Ultimately, the Project will support future marine terminal expansion, safety for users of the existing businesses, and improved access for the diverse community nearby. BACKGROUND Because Portland is the economic engine of the State of Oregon and a trading hub for importers/exporters from the Pacific Northwest to the Midwest, any challenges to its multimodal transportation infrastructure have far-reaching impacts. Consequently, maximum functionality of the Rivergate Industrial District a major link in that infrastructure system and a primary export gateway is crucial both to Portland Marine Terminal Freight and Jobs Access Project 2

5 PROJECT DESCRIPTION businesses and workers locally and to exporters across the United States. Located in the Portland Harbor at the confluence of the Willamette and Columbia rivers, Rivergate is home to three marine terminals (Port of Portland Terminals 4, 5, and 6), that in 2014 exported 10 million short tons of grain and mineral bulks from Terminals 4 and 5, and 87,968 containers (TEUs) of goods, and 48,442 Ford vehicles through Terminal 6. Rivergate is also home to manufacturing and distribution businesses, and 100 import/export businesses, such as Nordstrom, Columbia Sportswear, Ford Motors, EVRAZ Steel, and Weyerhaeuser, making it a key employment center in the Portland region. Directly south of Rivergate is the St. Johns neighborhood, a culturally diverse and lower-income residential community. At issue are a road and at-grade rail crossing serving Port marine Terminal 5 that result in delays and access impediments to Rivergate businesses, while creating a lack of safe access for nearby workers to reach Rivergate businesses. The at-grade rail crossing for the South Rivergate Rail Lead handles more than 7 million tons of export cargo a year, including grain exports from as far away as the Midwest. The export facilities provide international market access to U.S. agricultural products from Minnesota, North Dakota, Montana, Idaho, Washington, and Oregon. Another export business at Terminal 5, Canpotex, exports nearly 3 5 Terminal 5 South Rivergate Rail Yard Terminal 6 Terminal 6 Leadbetter Overcrossing Ramsey Rail Yard Lombard Widening and Path Terminal 4 Black labels are recent investments in the project area RIVERGATE DISTRICT VICINITY MAP million tons of bulk potash to Asian markets, annually. The area offers the highest concentration of multimodal freight transportation facilities in the state, including: the Port s Terminals 4, 5, and 6; the Union Pacific Railroad (UPRR) Barnes Rail Yard and; BNSF Railway A and B yards all of which are critical links in the regional freight network. Vehicle traffic approaches 10,000 vehicles per day; almost 40 percent are trucks. Within Rivergate and the nearby Columbia Corridor Industrial Trains frequently block freight truck and employee access Trains blocking the access to Rivergate can cause traffic gridlock for up to four hours every day. District are some of the highest concentrations of industrialsector employment in the Portland region and the state of Oregon. There are approximately 2,600 total businesses in the Columbia Corridor area that employ over 65,000 workers and generate a total of nearly $2.9 billion in wages per year. 3 Portland Marine Terminal Freight and Jobs Access Project

6 PROJECT DESCRIPTION Substantial infrastructure improvements and private enterprise investments have occurred recently to help handle the area s growth and worker access, but the at-grade rail crossing and the still incomplete multimodal connection are greatly restricting the full potential of Rivergate as a marine industrial center and employment center for the nearby community. Significant vehicle traffic congestion and safety remain a major concern. SPECIFIC CHALLENGES The freight route needing improvement is part of the National Highway System that provides regional shippers with access to the St. Johns Bridge/Highway 30, Interstate 5, and Interstate 84. North Rivergate Boulevard is the only public access road into the south end of Rivergate. This route is often blocked by inbound and outbound unit trains serving Port marine Terminal 5 at an existing at-grade rail crossing, resulting in lengthy delays that shut down all movement to and from the entire Rivergate Industrial District and prevent emergency access (video). Traffic blockages often extend 2 miles on Lombard Street to the Columbia Slough to the north, and over 1.5 miles to North Columbia Boulevard to the south, creating traffic gridlock on both access routes for up to four hours per day and limiting access to approximately 100 businesses. The congestion at the at-grade crossing reduces the efficiency of Rivergate manufacturing businesses. The cost In addition to traffic backups due to the at-grade rail crossing, there are no facilities for cyclists and pedestrians, who are forced to share the road with truck traffic financial and safety ramifications. of congestion is high delays to freight movement to, from, and within Rivergate have serious In addition to the truck, train, and auto traffic in Rivergate, there are transportation challenges for employees using other modes. Despite infrequent bus service to this area, some industrial facilities report a transit share of 30 percent of their employees; the choice to use transit is based on economics rather than convenience. Often, because of conflicts between rail and street traffic, transit riders The rail crossing blockage backs traffic up to the north and south, effectively halting traffic into the Port Our business provides hauling services to Terminal 5. With competitive trucking rates, an hour s delay (due to congestion) makes the difference between making a profit or coming home with a loss. - Paul Langner Teevin Brothers Portland Marine Terminal Freight and Jobs Access Project 4

7 PROJECT DESCRIPTION Key Project Benefits The Portland Marine Terminal Freight and Jobs Access Project is ready to quickly proceed once funding is secured. The project supports all of the TIGER VII strategic goals: Provides access that will enhance the viability of business expansion at Terminal 5 Provides new and existing industries exceptional access to multimodal facilities (interstates, an international airport, marine terminals, and rail yards) that are uniquely positioned for international exports Removes a barrier by creating a multimodal connection from an economically distressed area to middlewage jobs at Rivergate Improves the fluidity and cost of freight rail due to reduced switching Reduces pollution from vehicle miles traveled and vehicle idling Upgrades decaying and unsafe infrastructure to the highest and best use Improves safety for all modes train, automotive, freight, pedestrians, and bicyclists Guarantees emergency access to the marine terminal and industrial area that currently does not exist must exit buses 1.5 miles away and travel by foot into Rivergate, through areas that lack sidewalks, exposing them to unsafe traffic conditions. Likewise, those who commute by bike often find the trip daunting. Most of Rivergate is bike friendly, following the recent completion of a 12-foot-wide multi-use path on Lombard; however a 1,700-foot-gap remains on Columbia Boulevard between Rivergate and the nearby St. Johns residential area. Workers from the St. Johns neighborhood who choose or need to bike or walk to jobs in Rivergate face a daily risk in their commute, with potentially dangerous interactions with auto and freight traffic. ADDRESSING THE CHALLENGES To meet Rivergate s challenges, the Project partners propose solutions to address congestion and improve access for all modes traveling to and from Rivergate. The Portland Marine Terminal Freight and Jobs Access Project will: (1) provide a grade separation at the North Rivergate Boulevard rail crossing and associated improvements to provide more efficient movement of vehicle traffic that will support terminal and business expansion, and (2) improve off-street access for non-motorized traffic to Rivergate to increase the connectivity of North Portland to this important jobs center. Grade separations are often difficult to fund within existing funding programs. In today s constrained funding environment, grade separations must compete with other critical transportation needs. Although grade separations can provide multiple benefits to at least four modes of travel (road, rail, bike, and pedestrian), because of their high cost and their need for agreement among multiple public and private parties, they frequently remain unfunded. The Project will: Overcrossing Reconstruct Roadway Intersection Improvements Roadway elements for the Project Provide a grade-separated crossing to address congestion and safety issues caused by the intersecting of trains and vehicles; 5 Portland Marine Terminal Freight and Jobs Access Project

8 PROJECT DESCRIPTION Reconfigure and widen a deficient roadway intersection to accommodate turning trucks, thereby reducing damage to sidewalks, curbs, and walkways and reducing risk to pedestrians; Reconstruct a roadway base to return it to a state of good repair; Provide for an increase in agricultural exports and bulk mineral exports through Terminal 5; Reduce the time it takes to switch unit trains into Terminal 5, thereby significantly lowering the costs of transporting export cargoes and enhancing the economic productivity of Rivergate; Increase mobility and access to jobs for an economically distressed population, by expanding access via low-cost commuting options from the area s large low-income residential neighborhoods; Ensure guaranteed emergency access to a significant industrial employment area; Increase business productivity and reduce business costs by reducing delays, and improve travel time reliability for freight movement and Rivergate personnel and other businesses serving the district; Proposed overcrossing to eliminate at-grade conflicts between rail traffic, and auto and truck traffic Lower harmful emissions and reduce fuel consumption resulting from idling and out-of-direction travel, because when trains block the road, trucks are forced to use Time Oil Road as an alternative route, requiring a detour of 1.3 miles in each direction. 1) PROVIDE A GRADE SEPARATION OF NORTH RIVERGATE BOULEVARD OVER THE SOUTH RIVERGATE RAIL LEAD During rail crossings, North Rivergate Boulevard and North Lombard Street become obstructed, thus preventing commerce, employee, and emergency access to adjoining industrial properties. Resulting traffic queues back up onto the primary route serving the Port, impacting all businesses. Business driveways on North Rivergate Boulevard are completely cut off. Trucks stuck at the rail gates use business driveways for turnarounds, causing disruptions, unsafe conditions and costly damage to property and landscaping. The at-grade crossing also increases the time and complexity of rail operations into and out of Terminal 5 and South Rivergate Rail Yard. Terminal 5 is the Port s largest volume terminal and is served by unit train operations. The operation of the two bulk terminals located there are poised for growth but currently constrained by limitations associated with the at-grade rail crossing. BNSF Railway has stated that removing the at-grade conflict could save 30 minutes per train. By integrating infrastructure improvements to relieve congestion and increase efficiency, the Project primes the area for industrial growth and expanding export capabilities. Portland Marine Terminal Freight and Jobs Access Project 6

9 PROJECT DESCRIPTION The new overcrossing will allow free-flow movement for North Rivergate Boulevard and North Lombard Street, which accommodate nearly 10,000 vehicles per day (40 percent are trucks). In addition, rail operations will be improved. A grade separation (overcrossing) will rectify these conditions and include the following elements: North Lombard Street North Rivergate Blvd. Turning radius for trucks is inadequate A vertical clearance of 25 feet over the train tracks, sufficient to accommodate all rail cars; A frontage road to provide access to businesses located on the north side of the overcrossing structure; Bike lanes, a sidewalk, and lighting to enhance alternative modes of transportation; and Mechanically Stabilized Earth (MSE) walls used to narrow the footprint and protect an environmental zone to the south of the right-of-way. Sidewalk damage from trucks turning into the entrance to the Port 1A) MODIFY THE INTERSECTION OF NORTH RIVERGATE BOULEVARD AND NORTH LOMBARD STREET Associated with the new overcrossing, a series of improvements to the intersection accessing Rivergate will address safety, congestion, and improved operations. Currently, semi-trucks have difficulty meeting the turning radius provided at the intersection. As a result, trucks frequently drive over the sidewalk and into the opposing lane on North Rivergate Boulevard, creating a hazard that puts vehicles and pedestrians at risk. The sidewalk and curb are also damaged by trucks. No sidewalk exists on North Lombard Street, and pedestrians must walk across landscaping to reach the sidewalk on North Rivergate Boulevard. Slow-moving trucks at the intersection hamper the fluidity of vehicle traffic on both North Lombard Street and North Rivergate Boulevard. Project elements of the intersection modification include: The high percentage of heavy trucks on Rivergate Blvd. have degraded the pavement Redesign to accommodate truck turning movements for all classes of trucks, eliminating unsafe maneuvers; Reconstruction and extension of pedestrian facilities, including a sidewalk north of the intersection to connect with a bus stop and an improved connection to North Columbia Boulevard; and Stormwater treatment, landscaping, and street lighting improvements. 7 Portland Marine Terminal Freight and Jobs Access Project

10 PROJECT DESCRIPTION 1B) RECONSTRUCT THE BRIDGE APPROACH AND ROADWAY TO ACHIEVE A STATE OF GOOD REPAIR The approach to the new overcrossing on North Rivergate Boulevard needs a full-depth reconstruction between North Lombard Street and Time Oil Road. North Rivergate Boulevard has one of the highest percentages of heavy truck use in Portland with 40 percent being trucks (37 percent of which are Federal Highway Administration (FHWA) Class 7 and above). The upgraded roadway will be suitable for the truck weights and volumes it must support. Proposed Multi-use Connection 2) PROVIDE A CONNECTION FOR BIKES AND PEDESTRIANS BETWEEN NORTH COLUMBIA BOULEVARD AND NORTH LOMBARD STREET Lack of facilities and cracked pavement make navigation to the Port hazardous for employees who bike or walk Employees face daily traffic jams when commuting to Port terminals due to the backups at the at-grade railroad crossing at the Port s entrance. Access by other modes is difficult due to substandard facilities or lack of connectivity. The Project will construct a 1,700-foot-long, 12-foot-long wide path for bikes and pedestrians, thus creating a connection between North Portland neighborhoods and the multi-use path that serves employers within Rivergate. For the high proportion of low-income residents and communities of color in the St. Johns neighborhood, which is less than a mile from Rivergate, this is a badly needed transportation alternative to access the jobs in Rivergate. This connection, as well as The new multi-use connection provides a safe connection for bikes and pedestrians the other components of the Project, will serve not just the Port, but the entire Columbia Corridor employment district. Communities of color rely disproportionately on industrial sector jobs located in the Columbia Corridor, including at the Port. Knowing that there are low-cost, reliable transportation options other than driving might increase the residents confidence in applying for jobs. Portland Marine Terminal Freight and Jobs Access Project 8

11 PROJECT PARTIES II. PROJECT PARTIES The Portland Marine Terminal Freight and Jobs Access Project is a collaborative effort between the Port of Portland and the City of Portland. PORT OF PORTLAND Originally created by the Oregon Legislature in 1891 to dredge a shipping channel from Portland to the Pacific Ocean, the Port of Portland today is a consolidated port, providing aviation, maritime, and industrial facilities serving interests within Multnomah, Clackamas, and Washington counties and businesses throughout Oregon and southwest Washington. The Port owns four marine terminals, Oregon s only international airport (Portland International Airport), and two general aviation airports (Hillsboro and Troutdale); has developed seven commercial/industrial parks with more than 10,000 acres of industrial property; and owns more than 750 acres of natural areas. Port general fund revenues are largely generated through business transactions, with less than 4 percent of Port revenues coming from public sources. CITY OF PORTLAND The City of Portland is the local governmental entity responsible for ensuring public safety and promoting economic vitality and opportunity. The Portland Bureau of Transportation (PBOT) is responsible for planning, building, operating, and maintaining an effective and safe transportation system that meets the access and mobility needs of Portland residents and businesses. Oregon s most vital highway, railroad, and marine routes converge in Portland, making it the fourth largest freight hub on the West Coast that has the third highest concentration of transportation sector employment in the nation. 9 Portland Marine Terminal Freight and Jobs Access Project

12 FUNDING/PROJECT COSTS III. GRANT FUNDS AND SOURCES/USE OF PROJECT FUNDS The total Project cost is $19,253,000, and the Project partners request $11,033,000 in TIGER VII Discretionary Grant funds for successful completion of the Project. The Port and the City are partnering to contribute $5,000,000. This local match represents a significant commitment of public financial resources, and contributes 26 percent of the total Project cost. Additionally, $3,220,000 in federal Metropolitan Transportation Improvement Project (MTIP) funds have been awarded in recognition of the importance of this Project. With 42.6 percent of the project funds in hand, less than 58 percent is required from the TIGER program. TIGER VII Project Cost, Local Match, and Grant Request Other Funding Source of Match Project Description Federal MTIP (not counted as match) Port of Portland City of Portland Total Local Match Tiger VII Request Total Cost Rivergate Overcrossing $3,220,000 $2,416,600 $2,416,600 $4,833,200 $10,365,800 $18,419,000 Rivergate Reconstruction Rivergate & Lombard Intersection Improvements Columbia Blvd. Multi-use Path $83,400 $83,400 $166,800 $667,200 $834,000 Project Totals $2,500,000 $2,500,000 $5,000,000 $11,033,000 $19,253,000 Percent of Project Cost 17% 13% 13% 26% 57% LEVERAGED INVESTMENTS The TIGER VII funds will help maximize public and private funds already expended totaling $224,300,000 in infrastructure improvements made within the last six years to the Rivergate Industrial District. Currently, $185,000,000 of investment is being expended by private entities to construct the necessary infrastructure to prepare for an increase in exports through Terminal 5 ($45 million by Columbia Export Terminals and $140 million by Canpotex). The Port and the City are working diligently to build the infrastructure necessary to increase exports from the Port s marine terminals and improve multimodal access to Rivergate. The Columbia River navigation channel between Portland and the Pacific Ocean has been deepened from a depth of 40 feet to 43 feet to allow for the transit of larger ocean vessels. The deepening was completed in November 2010 at a cost of $180,000,000. The Port also deepened five bulk and container berths at a cost of $5,730,000 to take full advantage of the Columbia River navigation channel. Three anchorages to serve bulk berths have been added in the Columbia River since that investment was made. The Oregon Transportation Commission has identified the Portland Marine Terminal Freight and Jobs Access Project as a State priority for Tiger VII funding. Portland Marine Terminal Freight and Jobs Access Project 10

13 FUNDING/PROJECT COSTS Over the past six years, the Port of Portland and the City of Portland have partnered with UPPR, BNSF Railway, and the State of Oregon to: 1. Increase yard capacity at two rail yards in Rivergate (South Rivergate Yard and Ramsey Rail Yard); 2. Build a rail overcrossing (Leadbetter Overcrossing); 3. Strengthen two bridges (Columbia Slough Bridge and Burgard Bridge); 4. Widen a roadway (North Lombard St.); and 5. Add multi-use path segments to provide alternative transportation options to access the area from the nearby community. These improvements represent another $44,300,000 in investments. To take advantage of the improved transportation infrastructure investments, Columbia Export Terminal is dedicating $45,000,000 in expansion investment to double grain exports. Portland Bulk Terminal (Canpotex) has $25,000,000 in investments underway and an additional investment of as much as $115,000,000 planned, so that Portland Bulk Terminal can increase its volume from 3.5 million tons per year to 7 million tons per year. Leveraged Investments Investment Investor Millions ($) Ramsey Rail Yard expansion State of Oregon, Port of Portland, UPRR, BNSF. SAFETEA-LU 13.9 South Rivergate Yard expansion Port of Portland, State of Oregon, UPRR, BNSF 11.0 Leadbetter Overcrossing State of Oregon, Port of Portland, SAFETEA-LU 10.0 Lombard widening and multi-use path State of Oregon, Port of Portland 3.6 Grain storage, cleaning, transporting equipment (private) Columbia Export Terminals (private) 45.0 Chimney-Pier Park trail connection State of Oregon, City of Portland 0.3 North Lombard St. Columbia Slough Bridge City of Portland 1.5 North Lombard/Burgard Bridge Structure City of Portland 4.0 Columbia River deepening USACE and Columbia River Ports Canpotex (private) Ship Loader, conveyor, storage improvements (private) Total Leveraged Investment $ Portland Marine Terminal Freight and Jobs Access Project

14 IV. SELECTION CRITERIA A. PRIMARY CRITERIA I. STATE OF GOOD REPAIR The Project s new grade separation on North Rivergate Boulevard will eliminate the conflict between rail and truck freight modes. The grade separation will span 115 feet over the railroad tracks with a vertical clearance of 25 feet. On the west side of the structure a frontage road will be constructed to allow access to the businesses on the north side of Rivergate Boulevard. Associated improvements include realignment of the Lombard/Rivergate intersection to improve the truck turning radius, and reconstruction of the roadway approach to the new bridge to better accommodate truck weights and volumes of freight traffic. An important intersection will be widened to stop the damage to curbs, sidewalks, and landscaping due to insufficient radius for truck turns. Currently, North Rivergate Boulevard is in disrepair and shows areas of significant distress. The roadway base is failing, and the pavement is alligatoring and raveling. The traffic volume on this roadway is 40 percent trucks, 37 percent of which are Federal Highway Administration Class 7 and above. Many of the trucks are bound for EVRAZ Oregon Steel Mills and carry heavy steel products. N. Rivergate Boulevard base and pavement are in need of significant repair to support truck traffic A new 1,700-foot-long, 12-foot-wide multi-use path on Columbia Boulevard will result in a better facility for pedestrians and bikes to provide transportation choices for job access. The route currently has a significant 700-foot gap in the sidewalk, and the existing sidewalk is narrow and has utility poles in its center. The multi-use path will fill in this gap to connect the adjacent neighborhood to a signalized crossing and create access to the Rivergate Industrial District multi-use paths. MAINTENANCE FUNDING IS IN PLACE The Project is appropriately capitalized up front, as noted in the Grant Funds and Sources/Uses of Project Funds section. The Project partners have sustainable financial sources in place, including both public and private funds, to maintain the Project over the long term. All new transportation infrastructure constructed on North Rivergate Boulevard, North Lombard Street, and North Columbia Boulevard is in the City s right-of-way and will be maintained by Portland Bureau of Transportation (PBOT). The Project will actually improve the financial ability of the City by reducing maintenance costs and increasing the tax base. The narrowness, gaps, and utility poles in the existing path create challenges for pedestrians Portland Marine Terminal Freight and Jobs Access Project 12

15 The Port s Common Area Maintenance Association will maintain the common areas as well as the areas along the street rights-of-way, ensuring the beauty and landscape functionality of the industrial park. II. ECONOMIC COMPETITIVENESS STRENGTHENING INTERNATIONAL EXPORTS AND IMPROVING OUR ECONOMY Improvements to our transportation infrastructure will help Portland and Oregon support the goals of the National Export Initiative and other trade initiatives to strengthen the U.S. economy, add jobs, and provide opportunities for growth in international trade for the Pacific Northwest and the nation. Portland is the primary international export gateway for 11 states in the Pacific Northwest and upper Midwest, is the second largest export gateway on the West Coast, is third in the world for grain exports, and is first in the nation for U.S. wheat exports. Shipments of Ford Mustangs from the Portland Gateway to Asia at Terminal 6 will grow in the coming years USDOT has identified Portland as one of four National Freight Gateways on the West Coast. Portland is the second largest importer of autos on the West Coast and in 2012 began exporting Ford autos from Dearborn, Michigan, to Asia through Terminal 6. In 2014, nearly 50,000 Ford vehicles were exported through the Port, representing a 400 percent increase from 2013, and more growth in exports is planned in the future. Due to strong and growing demand for Ford vehicles in Korea, China, and other international markets, Ford recently announced that the iconic Mustang would be shipped globally for the first time, with Portland as the export gateway for the first shipments. Auto imports/exports support more than 500 local jobs, paying above-average wages and generating more than $181 million of income per ton. The same rail line that serves Terminal 5 (the Ramsey Lead) also delivers Ford automobiles to Terminal 6 for export to Asia. With exports of Ford autos expected to grow over the coming years from nearly 50,000 to over 90,000 per year, ensuring efficient rail operations on the Ramsey Lead is essential. Portland is an export-intensive area exports of goods from highly specialized industries (semiconductors, computers, electronics) represent 67 percent of goods shipped. Even with this niche market, Portland s total exports have grown at an annual rate of nearly 13 percent since Rivergate, located in the Columbia Corridor Industrial District, is a regional cluster of freight and distribution businesses with a focus on international trade making it ideally situated for convenient access to national and international markets. Rivergate has immediate proximity to the Portland International Airport, Pacific Ocean-bound vessels at the Port s marine terminals, and connections to the nation s interior via two Class 1 railroads, the Columbia-Snake River barge shipping system, Interstate 84, and Interstate Portland Marine Terminal Freight and Jobs Access Project

16 According to the Department of Commerce International Trade Administration : Oregon s export shipments in 2014 totaled $20.9 billion. During the past 10 years, Oregon exports to the 20 countries with free trade agreements grew by 39 percent; over 30 percent of Oregon s exports went to these countries in Oregon s largest market was China, with $4.3 billion in exports, followed by Canada, Malaysia, Japan, and Korea, totaling $6.4 billion in exports. Nearly 6,000 companies export from Oregon locations; 90 percent are small to mediumsized enterprises that employ more than half of Oregon s private-sector workforce. More than 86,000 U.S. jobs are supported by goods exported from Oregon. As noted, the economic benefits of Portland s trading hub reach beyond Oregon. Serving as a $2 billion per year gateway for North American goods exported to other countries, Rivergate s Terminal 5 relies on velocity and efficiency of goods to market. A total of $1.29 billion of U.S.-grown agricultural products were exported through the Columbia Export Terminal facility alone in Exports from Canpotex and Columbia Export Terminal leaving Terminal 5 go to 12 countries across Asia, Central and South America, and Australia, and more new exports now are slated for India. Last year, Terminal 4 exported $458 million in goods, and Terminal 6 moved over $1 billion in goods. Rivergate s importance to national economic growth is significant: The Portland metropolitan region ranks as one of the nation s leading export economies. According to a March 2012 Brookings Institution study, Portland s export sales are 12 times greater than its economic size would predict. Exports account for 18 percent of the metropolitan area s gross product the highest level of concentration in the western United States, and the third highest nationally. Portland is one of four U.S. regions poised for export growth, and the Project directly correlates to the federal government s express goal to double U.S. exports. The region has created the Metropolitan Export Initiative a strategic plan geared toward doubling exports from the region in five years. A critical aspect of the Metropolitan Export Initiative is having the infrastructure in place to support market access and growth in export, and help Portland reach its goal of doubling exports. Portland s location at the confluence of rivers, roads, rails, and runways gives it further prominence as an important trading hub. The U.S. Department of Transportation (USDOT) has identified the Portland region as one of four national freight gateways on the West Coast. Rivergate is within minutes of Interstate 5 and Interstate 84, both of which are classified as National Highway System freight routes and federally designated truck routes. The Columbia River navigation channel was recently dredged at a cost of $180 million to allow access for larger ocean vessels Portland is the primary international export gateway for 11 states, and is first in the nation for U.S. wheat exports. Portland Marine Terminal Freight and Jobs Access Project 14

17 EVRAZ operates in a multi-modal environment (truck, rail, and ocean vessel). Current issues with the truck and rail congestion directly affect our ability to be competitive in the marketplace. Bruce Iredale, EVRAZ North America steel mill The Columbia and Willamette rivers have been designated by the U.S. Maritime Administration as Marine Highways for the Pacific Northwest. In addition to facilitating a doubling of export volumes through Terminal 5, the Project achieves a paramount objective of a TIGER VII grant by improving the economy through its job creation, as described in the section on Creating Quality Jobs. Lastly, the Project partners request for $11,033,000 in TIGER VII grant support would provide an exceptional estimated total benefit of $73,429,517 and a benefit-to-cost ratio of 3.81 to 1. This grant application is accompanied by strong regional, state, and local support and will leverage a contribution of $5,000,000 in local funds, which represent 26 percent of the project funds needed. IMPROVING LONG-TERM EFFICIENCY AND RELIABILITY FOR FREIGHT MOBILITY AND WORKER ACCESS The Project will give the existing and new businesses in Rivergate, and their customers and employees, more direct and efficient access. The Project will provide more efficient access for Terminal 5, South Rivergate Rail Yard, and the district s rail-served businesses. The existing at-grade crossing adds time and complexity to rail switching operations. Eliminating the at-grade crossing will simplify rail movements, thus helping Rivergate be more competitive by reducing rail switching costs. A study by HDR/Decision Economics estimates significant reductions in the hours of delay for passenger vehicles, trucks, and trains with the Project and related savings, as shown in the following table. Estimated Travel Time Savings (20 Years) Mode Hours Saved (20 Years) Truck 1,085,770 Automobile 655,368 Rail 61,370 Total hours saved 1,802,508 Source: HDR/Decision Economics, 2015 HELPING AN ECONOMICALLY DISTRESSED AREA The proposed Project will not only increase the number of jobs available to the residents of St. Johns, but will improve access to this neighborhood area which is designated by the Oregon Business Development Department as Economically Distressed. The Project is located in North Portland (U.S. Census Tract 15 Portland Marine Terminal Freight and Jobs Access Project

18 #14.01), which contains a workforce population with a significantly higher and growing percentage of African-American (12 percent) and Latino (24 percent) populations and lower-income households compared with the rest of Multnomah County, which has a 6 percent African-American population and a 10 percent Latino population. St. Johns neighborhood has an unemployment rate of 15.4 percent, triple Portland s overall unemployment rate of 5 percent. Based on U.S. Bureau of Labor Statistics data, the manufacturing, wholesale trade, transportation, and construction sectors provide primarily middle-income jobs and are a major source of middleincome and upward-mobility jobs for communities of color. In 2008, manufacturing and transportation sectors, made up 18 percent of jobs held by people of color in Multnomah County, compared to 10 percent of the jobs held by white employees. The Project will increase access to these important job sectors, creating ladders of opportunity to this economically distressed area. Rivergate Work Area Profile Total jobs5,839 Jobs that earn more than $3,333 per month 56% St. Johns Home Area Profile unemployed15.4% Percent Family households below the poverty level 19.2% Rivergate, with almost 6,000 jobs, is a tremendous source of middleincome jobs in these sectors with low barriers of entry for the nearby St. Johns community. According to U.S. Census Data, employment in the Rivergate area includes 45 percent in Manufacturing, 22 percent in Wholesale Trade, and 18 percent in Transportation and Warehousing. Of Rivergate s employees, more than half make over $3,333 per month. Many jobs within these industries do not require college degrees. In fact, 26.6 percent of Rivergate workers have high school degrees or equivalent, 10 percent did not graduate high school, and 29 percent have some college or an Associate degree. Education barriers to employment at Rivergate businesses are low but the physical barriers access to these middle-income jobs is what the Project will remove, creating more opportunities for jobs, especially as businesses are able to expand. Worker education Less than high school High school or equivalent, no college Some college or Associate degree Bachelor s degree or advanced degree Not available 10% 13% 21% 27% 29% Worker education Less than high school High school or equivalent, no college Some college or Associate degree Bachelor s degree or advanced degree Not available Not only does Rivergate have mostly middle-wage jobs, but many jobs do not require high levels of education. For the 54 percent of residents in St. Johns with less than a college degree, there are few educational barriers to employment at Rivergate 9% 20% 25% 24% 22% Portland Marine Terminal Freight and Jobs Access Project 16

19 Economic Impacts of Increase of 2 Million Tons in Bulk Exports JOBS DIRECT 62 INDUCED 74 INDIRECT 186 TOTAL 322 PERSONAL INCOME (1,000) DIRECT $4,156 INDUCED AND LOCAL CONSUMPTION $10,174 INDIRECT $9,525 TOTAL $23,854,52 BUSINESS REVENUE (1,000) $71,935 JOB TRAINING AND APPRENTICESHIPS Several of the companies at Rivergate have ongoing apprenticeship programs. For example, EVRAZ North America, a prominent steel manufacturer at the Port, has for many years maintained a strong partnership with Portland Community College (PCC). Students who take their training at PCC get their work experience at EVRAZ. EVRAZ has three employees serving on two of PCC s JATC (Joint Apprenticeship Training Committees). PCC also has 10 EVRAZ employees apprenticing as millwrights and five apprenticing as manufacturing plant electricians. In addition, PCC does customized workforce training for EVRAZ. EVRAZ, like many other businesses in Rivergate, is impacted by the problematic at-grade rail crossing. The improvement proposed in the Project will remove an important barrier to business growth and reduce EVRAZ transportation costs. EVRAZ s ability to grow its business will help foster growth in the apprentice program partnership with PCC. LOCAL PURCHASES (1,000) $20,937 STATE AND LOCAL TAXES (1,000) $2,290 Source: Martin Associates, 2011 Economic Value of Port of Portland Investment in Infrastructure 85 percent of jobs at Rivergate are industrial, paying middle-income wages or better, and a large proportion don t require a college degree. E-ZONE PROGRAM In the State of Oregon and Portland s Enterprise Zone (E-Zone) program, industrial firms that make a substantial new capital investment are allowed property tax exemptions for five years on the new investments, with no loss of current property tax levies to local taxing jurisdictions. Over 50 companies have participated in the program, investing anywhere from $500,000 to $86 million in facilities, equipment, and machinery as part of their E-Zone qualified investments. Since 1996, the City s E-Zone programs have leveraged over one billion dollars in private investments and have created and retained over five thousand full-time, quality jobs. In addition to the E-Zone program s private investment and job creation requirements, the public benefits derived from the E-Zone program include: Increased business opportunities for companies within the E-Zone through the program s local procurement requirement; Enhancing the tax base in the E-Zone to the benefit of all taxing jurisdictions; Payment of 15 percent of the value of the tax abatement into the Business Development and Workforce Training Fund to support local job training and financial assistance to small businesses in the area (Funds can also be used to support employee transit and child care); and 17 Portland Marine Terminal Freight and Jobs Access Project

20 Job training and recruitment of disadvantaged individuals from the surrounding neighborhood (First Source hiring agreement administered by Oregon Employment Department and local workforce board). Canpotex, at Port Terminal 5, is poised for expansion, investing $140,000,000 in infrastructure to double the tonnage moving though the terminal. In addition, Canpotex is participating in the City of Portland E-Zone program, investing $3,000,000 in local job training programs, small business development programs, and local procurement that specifically assists small business and provides potential job opportunities to adjacent residents. The benefits of this Project to distressed communities are many; by removing a major barrier and allowing businesses to reliably access their facilities and deliver their products, their attention can turn to business growth, job expansion, and training. As a result, ladders of opportunity will be enhanced in communities near Rivergate. CREATING QUALITY JOBS THAT PROFIT THE REGION AND NATION There are nearly 100 businesses in Rivergate, and a 2011 study by Martin Associates showed that the 5,839 direct jobs will result in an additional 2,336 induced jobs and 4,087 indirect jobs, for a total of 12,262 jobs. The site s proximity to international air and deep-sea freight invites export opportunities that promote quality jobs in the region. According to several studies, U.S. employees of export-oriented firms earn between 9 and 18 percent more than their counterparts at non-export-oriented U.S. firms. The TIGER VII-funded Project will generate an estimated 250 short-term jobs, and incent at least 1,461 longterm direct, induced, and indirect jobs associated with the marine terminals park. It is estimated that these 1,461 new long-term jobs, which would boost Rivergate employment by more than 12 percent. Short-Term Job Creation From Proposed Project Job Category # of Job Years Timing Design and Permitting Qtr. 4 to 2016 Qtr. 3 Construction Qtr. 4 to 2018 Qtr. 4 Total years, start to finish Job-Year methodology source: Estimates of Job Creation from the American Recovery and Reinvestment Act of 2009, Council of Economic Advisors, May 2009, updated September Participation in the Portland E-Zone program by these Rivergate businesses is helping to fund apprenticeship programs for industrial jobs: Canpotex EVRAZ SunEdison Subaru Rivergate Scrap Metal Archer Daniels Midland Ajinomoto SoloPower Apprentice program participants get work experience at Rivergate businesses Portland Marine Terminal Freight and Jobs Access Project 18

21 At Terminal 5 alone, both Columbia Export Terminal and Canpotex are positioned to realize an increase in exports from approximately 7 million tons annually to as much as 13 million tons annually through their recent and planned investments to expand their infrastructure. By providing unfettered rail access to Terminal 5 in support of that expansion, and leveraging $38,500,000 in rail and roadway infrastructure investments already made in Rivergate, the Project will enable the creation of family-wage jobs near an economically challenged community. A Martin Associates study indicates that a terminal expansion to increase bulk exports by just 2 million annual tons would create 62 new direct jobs, 74 induced jobs, and 186 indirect jobs annually (322 total jobs). Those job numbers could triple (reaching nearly 1,000) if the full potential of Terminal 5 is realized. Other study findings: Businesses associated with servicing the export increase of 2 million annual tons will benefit by approximately $71,900,000 annually, from which: Summary of Jobs (Direct, Induced, Indirect) Existing Rivergate Jobs Marine Terminal Growth 966 Jobs Development of Vacant 495 Land Jobs Short term Jobs 250 Total Jobs 13,973 $4,200,000 will be paid to direct jobholders as family-wage incomes. $9,500,000 in annual wages will go to indirect jobholders. $20,900,000 will be spent on local purchases to support the economy. The increase of 2 million tons of export bulk cargo will generate $2,300,000 in state and local taxes annually. In 2011, Rivergate already provided 5,839 direct jobs that produced income of $301,893,323. The Project will also increase the economic productivity of 128 acres of vacant land within Rivergate by providing the improved infrastructure needed for redevelopment. If Rivergate s 128 vacant acres were developed, another 495 direct jobs, induced, and indirect jobs could be realized. Potential Jobs Through Development of Vacant Land Developed Existing Undeveloped Estimated Jobs on Total Jobs at acres Jobs Jobs/acre acres Undeveloped Parcels Build Out Rivergate , ,687.0 Source: Martin Associates, 2011, The Economic Impacts of the Port of Portland Real Estate Tenant Portland Marine Terminal Freight and Jobs Access Project

22 III. QUALITY OF LIFE The anticipated business expansion and job creation fostered by the improvements of the proposed Project will add to the quality of life by creating more opportunities for middle-wage jobs for nearby St. Johns residents. The Enterprise Zone program sponsored by the City of Portland and its partners and utilized by many of the businesses in the Rivergate Industrial District adds additional benefits those businesses participating in the program are not only funding training programs, but also can assist with child care expenses and the cost of transit for an employee s commute. This is no small matter the ability to manage the time and cost of arranging transportation and childcare can help participants balance life and work. Project s Resulting Emissions Reduction Pollutant Tons (20 Years) CO 2 4, NOx 2.00 PM 0.11 VOC 0.39 Source: HDR/Decision Economics, 2015 The multimodal aspect of this Project will increase connectivity in the North Portland area, removing transportation barriers and creating better access to the major employment centers poised for expansion in Rivergate, and the family-wage jobs and training they provide. Those who choose to commute to Rivergate by car, given the current congestion problem, waste time sitting in traffic, worry about arriving to work late, spend more for gas by idling in traffic, and have greater exposure to pollution from idling truck emissions. This situation has a direct impact on the employee s life/work balance and quality. Simply constructing the overcrossing element of this project would reduce stress and these impacts on quality of life. Many Portland commuters rely on bikes to get to work An employee of a North Portland-based business uses the regional trail system to get to and from work According to a 2004 study on obesity (Frank, Andreson & Schmidt, Journal of Preventative Medicine, 2004), each additional hour per day spent in a car increased the odds of obesity by 6 percent, while each kilometer walked resulted in a 4.8 percent reduction in the odds. Active transportation is linked to reductions in heart disease, obesity, and diabetes attributes that can seriously affect quality of life. The Project will increase accessibility for bike and pedestrian commuters, giving workers healthful commute choices. One important component of quality of life is having access to good paying jobs with low barriers to entry. Rivergate provides these types of job opportunities. The bike and pedestrian connection portion of the Project marries two important Pacific Northwest values livability and economic viability by creating The new overcrossing will remove the at-grade conflict with trains and provide a safer route for vehicles, pedestrians, and cyclists Portland Marine Terminal Freight and Jobs Access Project 20

23 6.3 percent of all commute trips in the Portland area are by bike, the highest in the nation. transportation options that provide people a low-cost commute to work, create health benefits, and reduce environmental impacts. Non-auto commuters are not only healthier, but the money saved by not owning or maintaining a car can be used to increase purchasing power in other areas money that often goes back into the local community. Portland has world-class bike facilities and is one of the first major cities to actively develop a bike system (the 40-Mile Loop) that will, when completed, encircle the Portland region. More people are using bicycles not just for recreation, but as a primary mode of transportation. Providing an improvement in a gap in the bike and pedestrian connection between the neighborhood and the employment district provides an important cost-effective option to access job training and job opportunities. IV. ENVIRONMENTAL SUSTAINABILITY The frequent traffic backups caused by the confluence of two major arterials and freight lines at the entrance to Rivergate have air quality implications. The proposed grade separation at North Rivergate Boulevard will reduce congestion, greenhouse gas (GHG) emissions, and fuel consumption. As a multimodal freight hub, Rivergate provides shippers with access to two Class 1 railroads, and many businesses in Rivergate provide truck-to-rail and rail-to-ship access. Improving access to these freight terminals facilitates increased use of rail and barges, which require only a fraction of the fuel that is used by trucks moving freight, thus lowering petroleum use and carbon emissions. The fuel efficiency for barges is 576 ton-miles per gallon, and efficiency for rail is 413 ton-miles per gallon, whereas trucks have a fuel efficiency of only 155 ton-miles per gallon. (Texas Transportation Institute, A Modal Comparison of Freight Transportation Effects on the General Public, March 2009) New stormwater facilities and the reduction of pollutants from idling traffic will help protect the Smith and Bybee Lakes Natural Area adjacent to Rivergate Industrial District The Columbia and Willamette rivers surrounding Rivergate earned a special designation from former U.S. Transportation Secretary Ray LaHood as key Marine Highway corridors for the nation. The designation came as part of the federal initiative America s Marine Highway Program to move more cargo by water. At 576 ton-miles per gallon, barging grain is the most fuel-efficient and environmentally friendly way to move cargo. Columbia Export Terminal already receives a significant share of Many species of resident fauna and migratory birds rely on the health of the wetlands at Bybee and Smith lakes 21 Portland Marine Terminal Freight and Jobs Access Project

24 the grain that it exports by barge, and this Project supports Columbia Export Terminal s planned increase in throughput from barges. As a leader in promoting bicycle and pedestrian access, Portland has taken great strides in reducing its carbon footprint. Further investments in improved options for access for existing employees and job seekers will foster growth in commutes by cycling and walking, thus lessening impacts on the environment. By providing these strategic and focused investments, the Project will provide significant and sustained reductions in carbon emissions in North Portland neighborhoods adjacent to the congested Interstate 5 corridor, where asthma rates are 57 percent higher (12.4 percent) than the national average (7.9 percent). By significantly reducing hours of delay for trains, trucks, and passenger cars, the Project will result in increased energy efficiency, lower emissions, and reduced dependence on oil. Pervious pavement will help stormwater management The Project includes extensive stormwater management elements related to the roadway improvements and the new overcrossing, and this aspect of the Project is important due to Rivergate s proximity to the Columbia and Willamette rivers; Bybee, Ramsey, and Smith and Bybee Lakes Natural Area; and their associated wetlands. In addition to beaver, turtles, and other wildlife, more than 100 species of birds use these resources both as migration stops and as year-round habitat. Stormwater management provided by the Project will help maintain the health of these resources. V. SAFETY The Portland Marine Terminal Freight and Jobs Access Project directly addresses safety issues related to the current road design in Rivergate. By eliminating the conflict between rail and vehicle traffic with an overcrossing, the Project also eliminates the tendency of some freight traffic to attempt to turn around at points near the entrance to Rivergate, creating an unsafe situation. Improving the turning radius at the entrance to Rivergate will eliminate accidental sidewalk climbing by semi-trucks, and thus will reduce the safety hazard for cyclists and pedestrians. Improving the bike When a train blocks the at-grade crossing at Rivergate, trucks make illegal maneuvers and drive over a median to detour to another access point and pedestrian facilities along North Columbia Boulevard by completing a gap in the multi-use path will also increase safety for cyclists and pedestrians trying to access jobs in Close encounters between bikes and trucks are too frequent Portland Marine Terminal Freight and Jobs Access Project 22

25 Rivergate. Transit riders will no longer have to walk 1.5 miles on a road without pedestrian facilities to Rivergate employers during traffic backups caused by the at-grade crossing. B. SECONDARY CRITERIA I. INNOVATION The Portland Marine Terminal Freight and Jobs Access Project is inherently innovative in its approach to building key pieces of infrastructure and its efforts to forge an integrated community where residents can work and play close to home. The Port and the City have created cutting-edge, innovative project designs for Rivergate. These designs have won many awards, and several of the techniques have been adopted at other ports. Examples of these innovations include 37 acres of pervious pavement at Berth 601, a wildlife undercrossing in Rivergate s south end, and the geotextile bank protection at Terminal 5. Apprentices at Portland Community College get their work experience at Rivergate businesses The Project is looking at innovative construction methods such as using pervious pavement treatments to help with stormwater management. In addition, rather than piping stormwater into the City s system, the Project will treat the water in infiltration swales, thereby reducing long-term maintenance costs and improving watershed health and environmental sustainability. The Project will also build and enhance relationships between the Port businesses and local training opportunities. The ability of Port businesses to expand will lead to greater job opportunities, and increase the potential for more partnership between businesses and the PCC JATC programs. The Project s improvements will clear obstacles for Rivergate businesses to expand. The innovative Enterprise Zone program will also benefit from business expansion as dollars for employee training and apprenticeship programs are increased. II. PARTNERSHIPS The Project brings together several key partners and supporters: Port of Portland; City of Portland; Portland Development Commission; the City of Portland s freight, bicycle, and pedestrian committees; BNSF Railway; and Union Pacific Railroad. The Port and City have worked with Rivergate businesses including Evraz, Columbia Export Terminals, and Canpotex to find a solution to the grade crossing issue. Through 23 Portland Marine Terminal Freight and Jobs Access Project