Channel Deepening: Coos Bay, Freeport

 

The Oregon International Port of Coos Bay (OIPCB) has completed dredging operations at the Port of Garibaldi this month, removing 32,000 cubic yards of dredge material from the boat launch and marina utilizing the state of Oregon owned dredge "THE LAURA." THE LAURA was purchased by the state of Oregon in 2015, with the cooperation of the Oregon Legislature and the Governor’s office.  Initially, THE LAURA was slated to only be used at ports along the southern coast to dredge launch ramps and marinas but will now be utilized for dredging projects throughout the state of Oregon.  

 

Dredging at the Port of Garibaldi this year was essential. Prior to completion of the dredging project, vessels were sitting on bottom at low tide, preventing them from getting underway when the tide was out. This project will save time and expense at the Port of Garibaldi, and lead to greater utilization of their facilities. The Port of Garibaldi supports a mix of commercial fishing boats, charter vessels and recreational fishing vessels. 

 

To complete dredging operations, six Port of Coos Bay staff were stationed at the Port of Garibaldi, working in partnership with three to four Port of Garibaldi staff.  Dredging operations could only be done during ebb tides when the tide was going out.  As a result, throughout the course of the project staff worked at various times of day and night due to shifting tide patterns.

 

"THE LAURA," an Ellicot-360SL swing ladder suction dredge, was purchased by the state following extensive conversations with the South Coast Ports Coalition, including the Ports of Alsea, Bandon, Brookings, Gold Beach, Port Orford, Siuslaw, Umpqua, and Coos Bay. Annual maintenance dredging of navigational channels is conducted by the U.S. Army Corps of Engineers (Corps), to keep shipping channels safe and navigable.  However, this annual maintenance dredging by the Corps does not include launch ramps and marinas.  Ports across the southern coast were struggling to keep marinas and launch ramps navigable due to the cost prohibitive nature of contracted dredging services.  Costs associated with marina dredging by private contractors are significantly amplified due to the costs incurred with mobilizing and demobilizing dredge equipment.  Smaller ports were not able to afford the cost to dredge their marinas, which has led to significant amounts of shoaling within marinas along the entire Oregon Coast. The result of this shoaling jeopardizes the ability of commercial and recreational fishing fleets to moor, yielding catastrophic economic impacts.  

 

The State’s purchase of "THE LAURA" and her tender, the Ms. SoCo, a 30’ twin outboard vessel equipped with a 1-ton crane, has helped to significantly reduce the cost of dredging in marinas, allowing smaller ports to remain safe and viable. This equipment is an extremely valuable asset for ports and marinas facilities throughout Oregon.

 

Port Freeport Commissioners passed a resolution calling an election on May 5, 2018, for residents in the Navigation District to vote on a ballot measure authorizing the port to issue up to $130 million in bonds for the Freeport Harbor Channel Improvement Project. The proposed bond package, coupled with approximately $165 million in federal funds, would pay for the deepening and partial widening of the Freeport Harbor Channel and is intended to be accomplished without an increase in the Port’s total tax rate.  

 

"The $130 million bond package will allow us to complete the Freeport Harbor Channel Improvement Project and make Port Freeport the deepest port in Texas," said Phyllis Saathoff, Executive Director and CEO of Port Freeport. "The entire federal cost-shared project, authorized by Congress in 2014, is estimated to cost approximately $295 million to construct, and more than half of this amount would be paid for with federal funds."

 

The project will deepen the Freeport Harbor Channel from its current depth of 45 feet to authorized depths of 51 to 55 feet. Additionally, the project includes enhancements to the upper turning basin, as well as widening of the channel and lower bend, making it easier and safer for larger modern ships to navigate the channel.  The project construction is expected to begin in 2020 and take approximately five years to complete.

 

"Channel improvements at Port Freeport will make it more accessible to larger ships now transiting the expanded Panama Canal," said Paul Kresta, Chairman of the Port Freeport Commission. "By accommodating different types of global vessels, we can expand our capacity and our customer base."

 

In 2019, Port Freeport will fully repay a previous bond issue, creating additional debt capacity within the existing tax rate. Additionally, the bonds will be issued in multiple series as work on the channel progresses and as new value from expiring industry tax abatements is added to the tax roll.  Given these factors and projected revenues from operations, the Port expects to service the bonds without an increase to its current total tax rate of $0.0401.  Multiple port-approved tax exemptions are available to resident homeowners including a homestead exemption, and for those over 65 or a veteran, an exemption of $100,0000.