Finance: Vancouver USA, Virginia

For the third year in a row, the board of commissioners of Port of Vancouver USA has chosen not to take the one percent tax increase ports are allowed annually under Washington state law.

The board’s November 18 decision keeps the amount of public investment in the port at just under $10 million annually, continuing a trend that started in 2009. Due to increasing Clark County property values, the 2015 port tax levy equates to $90.25 in annual property tax on a $250,000 home, a reduction of $9.50 from 2014.

"Nine dollars may not seem like much," said Commissioner Brian Wolfe, "but when you consider the port’s steady growth and steadily increasing return on investment to the community, like our investments in rail infrastructure and light industrial property, it’s pretty impressive."

At $98.6 million, the 2015 budget is the largest in the port’s 102-year history. Revenues are expected to increase $19 million from 2014, with most of the additional dollars coming from the port’s Dedicated Rail Service, a program moving goods between Vancouver and the Midcontinent.

The Dedicated Rail Service is expected to generate $18.5 million in revenue and is offset by $16.6 million in expenses. The projected $1.9 million net profit is part of the port’s expected growth for 2015. The port also expects to see increases in marine cargo, including agricultural products, automobiles, ceramic sand, fertilizer and steel.

Other budget highlights include:

$9.8 million in revenue from industrial leases, down slightly from the 2014 projection of $11 million.

$45 million investment in capital projects, including $17 million borrowed from the port’s line of credit. This investment helps improve port facilities and complete the port’s decade-long, $275 million West Vancouver Freight Access Project. The project removes a significant chokepoint from the regional rail system, reducing freight and passenger rail congestion by as much as 40 percent.

$6 million in revenue from the sale of property in the port’s Centennial Industrial Park.

Click here to learn more about the port’s 2015 budget, budgeting process, and how the port invests tax dollars.

Virginia Port Earns Profit for Fourth Straight Month 

The Port of Virginia completed October with an operating income of $314,000, continuing the port’s consecutive string of profitable months.

The port’s operating profit in the four months since the beginning of fiscal 2015 is $4.6 million, compared with an operating loss of $4.8 million in the same period of fiscal 2014. This October’s result was a $1.8 million improvement from that of October 2013. Moreover, the port has generated an operating profit and in seven of the last eight months in calendar 2014.

"When comparing the fiscal-year-to-date performances, we are looking at a swing of $9 million, so we are continuing to find solid financial ground," said John F. Reinhart, CEO and executive director of the Virginia Port Authority.

"And while we have an improving financial picture, we are still not where we want to be in terms of delivery of service at VIG and NIT," he said. "The challenge of congestion at our gates continues and impedes the ability for motor carriers to do their job with efficiency. At the gates, execution, consistency and adaptability is a primary focus. We are stabilizing the port and have a long, hard road ahead of us to revitalize the port and invest in critical infrastructure to deliver superior service and sustainability."

The port’s heartening financial performance came during a month when the port’s container throughput hit a monthly high of 221,105 TEUs, putting it on track for another record year.

American Association of Port Authorities
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