Legislature(1995 - 1996)
03/01/1995 01:28 PM House TRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE TRANSPORTATION STANDING COMMITTEE
March 1, 1995
1:28 p.m.
MEMBERS PRESENT
Representative Gary Davis, Chairman
Representative Beverly Masek, Vice Chair
Representative Bill Williams
Representative Eileen MacLean
Representative Jerry Sanders
Representative Tom Brice
Representative Jeannette James
MEMBERS ABSENT
None
COMMITTEE CALENDAR
Presentation by the Port of Bellingham Port Authority
WITNESS REGISTER
JIM DARLING, Executive Director
Port of Bellingham
625 Cornwall Ave.
Bellingham, Washington 98225
Telephone: (206) 676-2500
BOB HILPERT, Director
Main Line Terminals
625 Cornwall Ave.
Bellingham, Washington 98225
Telephone: (206) 6767-2500
LANI CALKINS, Manager
Fairhaven, Port of Bellingham
625 Cornwall Ave.
Bellingham, Washington 98225
Telephone: (360) 676-8445
MIKE BRENNAN
Bellingham Chamber of Commerce
1801 Roede Ave.
Suite 140
Bellingham, Washington 98225
Telephone: (360) 734-1330
DAVE BELL, Executive Director
Fourth Corner Economic Development Group
1203 Cornwall Ave.
Bellingham, Washington 98225
Telephone: (206) 676-4255
GARY HAYDEN, Director
Alaska Marine Highway System
3132 Channel Dr.
Juneau, Alaska 99801-7898
Telephone: 465-8827
REED STOOPS, Lobbyist
Port of Bellingham
240 Main St.
Juneau, Alaska 99801
Telephone: 463-3223
ACTION NARRATIVE
TAPE 95-6, SIDE A
Number 000
The House Transportation Committee was called to order by Chairman
Gary Davis at 1:28 p.m. Members present at the call to order were
Representatives Davis, Masek, Williams, Brice, Sanders, MacLean and
James.
CHAIRMAN GARY DAVIS asked the House Transportation committee
members to introduce themselves to the local audience and members
of the Port of Bellingham.
CHAIRMAN DAVIS introduced Jim Darling, the Executive Director of
the Port of Bellingham.
JIM DARLING, Executive Director, Port of Bellingham, explained that
representation from the Port of Bellingham to Alaska has been
ongoing since the late 1980s. In the 1980s, there were discussions
on moving the Alaska Marine Highway System Ferry terminal services
from Seattle to Bellingham. He expressed interest in the
importance of maintaining ties with Alaska and regarded Alaska as
a partnership. Mr. Darling explained his intentions of this
meeting were to present some background information and explanation
of the operations carried out at the Port of Bellingham, including
the new passenger/rail service and air transportation. Mr. Darling
explained the Port of Bellingham is a special authority port and
there are 70 ports within the state of Washington with only 300 in
the entire nation. Mr. Darling indicated the Port has three
elected commissioners, all from Whatcom County. They are in charge
of appointing executive directors which "retain the balance of the
staff." Mr. Darling said the net revenues of the Port amount to
more than $9 million a year. An additional $3.7 million is taxed
throughout the county. He explained the bulk of those funds are
set aside in a "war chest" for environmental problems due to 75
years of intensive work on the waterfront requiring some "cleanup
activity" over the next decade. Mr. Darling emphasized, the Port's
primary mission is transportation, the secondary mission is
economic development. He mentioned that the Port of Bellingham
"works hand and hand with the private sector as well as other
public agencies and economic development activities."
MR. DARLING continued to explain that the Port of Bellingham is
organized into four main areas of businesses: First, the operation
of Bellingham International Airport, the third largest airport in
Washington; second, a marine terminal division consisting of marine
cargo and passenger service of which the Alaska Marine Highway
System (AMHS) is part of that operation; third, the operation of
one of the largest small boat harbors in Washington State, and
possibly the Northwest, with approximately 2,400 slips for both
commercial fishing vessels and pleasure boats within two marinas,
one located in Blaine and the other in Bellingham; and the fourth
and largest division Mr. Darling spoke of, is a real estate
division. The Port is one of the largest landholders for
commercial property in Whatcom County, with approximately 11
restaurants as well as industrial users on the waterfront. Mr.
Darling introduced Mr. Bob Hilpert, Executive Director of marine
terminals, overseeing the handling of both cargo and passenger
marine facilities. Mr. Darling next introduced Mr. Dave Bell,
Executive Director of the Fourth Corner Economic Development Group
which is an Economic Development Council (EDC) for Whatcom County.
The EDC consists of a private and public partnership for the
promotion of economic development mainly in the industrial and
manufacturing areas. Mr. Darling then introduced Mr. Dan Robbins,
President of the Childrens Company consisting of a large retail
operation in Whatcom County. Mr. Robbins also represents the
Whatcom County Chamber of Commerce and has announced his candidacy
for Mayor of Bellingham. Mr. Darling introduced Ms. Lani Calkins,
Manager of the Fairhaven Terminal for the Port of Bellingham. Mr.
Darling said her responsibilities include the operation of the
ferry terminal, the new train station facilities and other multi-
modal connections involved. Mr. Mike Brennan was introduced next.
Mr. Brennan is President of the Whatcom County Chamber of Commerce.
Mr. Darling explained that Mr. Brennan was instrumental in the
transition of the AMHS move from Seattle to Bellingham. Mr.
Darling mentioned that the Chamber of Commerce has been a strong
supporter of the Port's activities in the area of transportation
and economic development. Mr. Darling asked Mr. Hilpert to speak
on behalf of the Port of Bellingham's Authority Board.
Number 143
BOB HILPERT, Director, Main Line Terminals, Port of Bellingham,
presented an artists' rendition of the multi-modal facility, which
is due to be completed in July of this year. He stated the Port's
mission is transportation efficiency and was initiated by the re-
establishment of the Amtrak service, available in late May of this
year. He stated this train system created an opportunity to
develop a "true multi-modal link" and developed a true interface
with rail, water and road systems. Mr. Hilpert commented that the
Bellingham cruise terminal was opened in 1989, welcoming the first
Alaska Marine Highway System ferry. He stated the "multi-modal
transportation facility will be added this year and is a
culmination of several years of work." He further explained
Washington State Department of Transportation and Public Facilities
helped finance with the sum of $2.2 million and the Federal Highway
Intermodal Transportation Efficiency Act (ISTEA) added funds of
$500,000 and the Port of Bellingham with $1.15 million totaling
$3.85 million. He reiterated service from Amtrak will start at the
multi-modal facility on May 26 of this year. Greyhound and
Trailways are currently using the terminal. The airporter, which
provides connections with SEATAC is currently using the Port's
terminal. Mr. Hilpert indicated these transportation systems would
enhance transit with local taxis, shuttles and special trains
aiding in connections with downtown facilities and the university
with a "rubber tire trolley"; i.e., vehicle. He said the services
mentioned will commence in July of this year with the completion of
the multi-modal facility. He mentioned the AMHS will interface, as
will the daily services of the Victoria, B.C. and San Juan, located
near Friday Harbor passenger ferries, with operations from May
through September. Also available will be charter excursion
vessels. He mentioned there will be conveniences such as visitor
information centers, food, telephones, gift shops, parking and
baggage facilities. He noted some of these facilities are already
in existence. Mr. Hilpert mentioned there would be vehicle
connections to the Bellingham International Airport taking
approximately 12 to 15 minutes, depending on traffic. He announced
the completion of the runway extension which now provides
approximately 7000 feet of runway. He stated the Federal Aviation
Administration is in the process of building a "bonafide" tower.
Mr. Hilpert asked Mr. Darling for figures on the investment amounts
for the construction of the tower.
MR. DARLING estimated a cost of $3.5 million. Mr. Darling
explained their current tower is a Winnebago trailer and "is the
only aviation control tower in the country that's elevation is
below the center line of the runway."
Number 205
MR. HILPERT announced the completion of the "mariport" study for
the cruise terminal. He said they were positioned in the market
for expansion of both cargo and passenger services. He stated, "we
have set the wheels in motion and are not sure if we're going for
the big guys. I think we're more prone toward what we consider a
nitch market for cruise vessels." He explained the Port has
extended involvement in cooperative marketing with the AMHS and the
Washington State and local travel guides. Mr. Hilpert mentioned
they are recipients of the Giorgio award for the Port's publication
on the Passport booklet. He indicated Ms. Lani Calkins will
further explain the passport booklet. Mr. Hilpert commented the
passport booklet was a small investment on their part with an
expenditure of approximately $500 of "seed" money. Various groups
in the community helped by selling $13,000 to $15,000 worth of
advertising. He mentioned the Port has coordinated transportation
schedules and travel plans with the visitor and convention bureau,
and the Washington State Transportation Marketing team and are
currently packaging travel plans with the convention bureau. Mr.
Hilpert asked if there were any questions on the multi-modal
facility. He reiterated the completion of the terminal is
scheduled for the end of July.
LANI CALKINS, Manager, Fairhaven Terminal, Port of Bellingham,
presented a brief summary and background on the history of the
Bellingham cruise terminal. She explained that in 1988 the Port of
Bellingham heard they were to have ferry services commencing in
October 1988, with the opening of the cruise terminal on October 3,
1989. She indicated the main focus of the Port is to provide
complete quality service such as baggage service, telephones,
staffed visitor information centers and easy connections for the
traveling public. She emphasized the importance of the multi-modal
facility. She reiterated what Mr. Hilpert mentioned about the
expansion of ferry services out of the Port. Aside from the AMHS,
she mentioned there are daily ferry services in the summer, roughly
May through September from Victoria, B.C. and a ferry service from
the San Juan Islands. She stated they are working to develop more
ferry service to that facility that would connect with the AMHS.
She explained the Port is conducting a variety of cooperative
marketing strategies and she emphasized the importance of working
with other groups. She referred to the contents of the information
packets presented to the House Transportation Committee members and
called attention to the AMHS schedule. She explained the Port has
a contract with the visitor and convention bureau, and one of the
requirements of this contract is to conduct cooperative marketing
and to work within the Alaska market. She made reference to a
recently completed Port brochure presenting pertinent information
to the traveling public, which lists the services available in
Bellingham. She described the cover predominantly depicted the
AMHS, along with the airport and cargo services of the Port of
Bellingham. Ms. Calkins pointed out the local Whatcom County
Visitors Guide, calling attention to the centerfold of the brochure
containing a complete listing of all the transportation services
available at the Port of Bellingham. She referred to the
Washington State Travel Guide and regarded it as one of their most
successful brochures. She explained the brochure has been ongoing
for a number of years with approximately 200,000 printed annually.
She indicated they have done cooperative marketing and joint
advertising on this brochure. She noted that the House
Transportation Committee has an ad for the state travel guide and
not the actual guide. She pointed out the 1995 ad contains
pictures of the AMHS and the local marina. Ms. Calkins announced
the services of Amtrak will be made available this year and are
adjacent to the cruise terminal. She emphasized they attempt to
conduct cooperative advertising within the community and the
entities that will be the most productive. Ms. Calkins indicated
that Mr. Mike Brennan will speak to the Committee with regards to
the passport booklet included in the packet.
Number 279
MIKE BRENNAN, President of the Chamber of Commerce for Bellingham,
reiterated Ms. Calkins' remarks on the involvement of cooperative
activities regarding the Port and other merchant districts that are
under the service contract with the Port of Bellingham. He
mentioned that the Chamber of Commerce had presented the concept of
the passport booklet to the Fairhaven Merchant Association. He
explained this was the second attempt of this booklet, the first
being administered to the "harbor" the previous year. He explained
that the Port of Bellingham contributed $500 of "seed" money. Mr.
Brennan stated the Port of Bellingham "brought to the table the
graphic artists that we work with for our major festival activities
and presented this Fairhaven passport which just last weekend won
the Washington State Tourism Association award, called the Giorgio,
for the best new product." He explained the passport booklet is
utilized throughout Fairhaven and presents an excellent overview
and complete listing of all the businesses in Fairhaven whether the
businesses contributed to advertising or not. He mentioned the
listings were designed for the convenience of the public as well as
background information on the community itself. He referred to a
poster that will appear in windows of various businesses for the
public as a guide, indicating what is available and where. Mr.
Brennan emphasized the importance of the mentioned projects as it
provides an excellent opportunity for further business developments
and enhancement of the economy in Bellingham. He indicated
recently there has been a decline in Canadian visitors to Whatcom
County. He mentioned the dollar difference between the United
States and Canada has had a dramatic effect on the economy of
Whatcom County. He said the "big" years, such as 1991, when there
was approximately 31 million Canadians traveling to Whatcom County
to shop. He estimated that currently, there are approximately 26
million Canadian visitors traveling through Bellingham. He stated
that "while the impact is still incredible, the difference between
26 million and 31 million is sometimes the profitability of many of
the retail operations." He indicated there has been a renewed
interest in Bellingham coming from the South traveling on the I-5
corridor. He mentioned the Chamber of Commerce office has
addressed questions of interest to Bellingham from as far south as
Everett. Mr. Brennan explained this was due to travelers wanting
to avoid the Seattle area, thus coming north to Whatcom County.
Mr. Brennan explained there was a tremendous change in Whatcom
County's market place in providing an impetus to further market and
publicize the amenities within the community.
Number 326
DAVE BELL, Executive Director of the Fourth Corner Economic
Development Council in Bellingham, presented further information on
Whatcom County. He indicated that Whatcom County is a relatively
small county in terms of population, growing at a rate of 3 percent
annually with a current population of approximately 147,000. He
stressed the importance of being a "gateway" for both the north to
British Columbia and south to Seattle. He indicated that within
two hours on the freeway in either direction, Bellingham represents
a market of approximately 5 million people. He recollected that in
the late 1940s, Seattle and Everett were connected by Highway 99
with nothing in between. Mr. Bell stated, "there is a similar
analogy for our area, too. We're right in the center. That's good
from an economic point of view, but from a growth point of view, it
also raises some issues too." Mr. Bell explained one of the
functions of the Economic Development Council is to help local
businesses and to stimulate the production of new businesses. He
stated, "if there are business relationships as supplier relations,
goods and services relationships that you might be seeking where we
can help you, then I hope I can be a resource for you." He
concluded by presenting a directory published by the Economic
Development Council which includes economic information such as a
list of all the manufacturers and major employers in Whatcom
County.
Number 354
MR. DARLING made reference to the artist's rendition of the multi-
modal facility and reiterated the importance and commitment to the
community and traveling public with the multi-modal facility. He
believes that upon completion of the multi-modal facility and the
services of Amtrak, this will be the only rail/marine link in the
United States. He emphasized the opportunities that will be made
available to both Alaskans traveling south and people traveling
north bound as well. He stated the Port's investment is fairly
substantial. The ferry terminal itself was about a $12 million
investment in 1989. He mentioned that the train facility
represents an investment of $1.2 million with an additional $2.7
million in federal and state money invested in the multi-modal
facility. He said the Port's investment in the facilities depicts
a strong indication of the community support and interest in the
connections the facility provides. He said in addition to that,
the Port has been working with both the chamber and the visitor and
convention bureau, to try to educate the people of Whatcom County
about the transportation opportunities available when traveling to
Alaska and the development of more connections such as air
facilities. He recalled that in the 1980s, air service did exist
from Bellingham to Alaska. He explained because of ridership
reasons, those routes were discontinued and there was
reorganization within the airline industry. Mr. Darling indicated
Whatcom County is currently serving approximately 125,000
passengers a year out of the Bellingham airport. He mentioned the
Port had conducted some market analysis showing approximately 2.5
million people currently traveling by air. He mentioned the
importance of the Port attempting to "pick up" some of this market.
He said "this provides a threshold of service," allowing airlines
to return to Bellingham, as well as providing alternative access
from Bellingham to another hub airport for East Coast connections
as well as international travel, other than SEATAC. He added that
SEATAC is congested as is, and service from Bellingham would help
to alleviate some of the congestion. He stated another goal of the
Port is the development of more direct connections between
Bellingham and Northwest Washington and Alaska, particularly
Southeast Alaska. He said one the difficulties the Port has with
that is if it were Bellingham to Anchorage, for example, there's a
larger ridership load there than into Southeast because there are
so many communities that people want to visit. He mentioned this
coming spring, the Port of Bellingham members will be visiting with
the major and medium size airlines to discuss connections to
another hub with more direct flights to Southeast Alaska. Mr.
Darling added the opportunities for passenger and air cargo
services will be discussed as well. He stressed the importance of
these services to Alaska, with the use of the multi-modal
transportation facilities which will create opportunities such as
air transportation. Mr Darling asked if there were any questions
of the Committee.
Number 405
REPRESENTATIVE EILEEN MACLEAN asked if the "industry" participated
in the funding for the advertisements that appear in the Industrial
Directory.
MR. BELL responded no, but the possibility was discussed. Mr. Bell
explained the publication was designed to help promote the area and
provide an introduction to the resources available in Whatcom
County. He added for the public, it acts as a "for sale"
publication. He mentioned it was not their major "promotional
piece," but it has potential in helping the public look for
business connections from manufacturers or major employers.
REPRESENTATIVE MACLEAN asked for verification in the selling of the
Industrial Directory.
MR. BELL acknowledged the development council did sell the
publication to the general public.
MR. HILPERT added one of the items they liked to encourage within
the multi-modal facility, is an Alaska State Trade Office in order
to help generate some of the cross trade.
Number 422
CHAIRMAN DAVIS encouraged Mr. Hilpert to make contact with the new
commissioner of the Department of Commerce and Economic
Development. He also indicated this would be an important step
with the onset of the Amtrak facility, as well as the currently
operating buses such as Trailways, Greyhound and the local busses
that are utilizing the multi-modal facility with connections to the
airport as well.
REPRESENTATIVE JEANNETTE JAMES asked "where can you go from there
on Amtrak."
MR. DARLING suggested options such as traveling north of Vancouver,
B.C. or travel eastbound on Canadian rail or south to Southern
California. He indicated the route to Southern California is a
direct line. He explained that a "travel corridor" is being re-
established between Seattle and Vancouver. He also mentioned a
"corridor" between Seattle, Washington and Eugene, Oregon exists
and is being upgraded. He emphasized by going through Everett,
there are links to the East Coast with connections to Chicago or
Denver accessing all Amtrak facilities.
Number 436
REPRESENTATIVE BEVERLY MASEK inquired as to the amount of trade
being processed through the Port of Bellingham to Alaska. She made
reference to information provided by the Port of Bellingham on
trade services, specifically the Export Trading Company. She also
commented on the map provided by the Port which depicted Bellingham
and Pacific Rim markets showing routes to Korea, Japan and Alaska.
Representative Masek reiterated her question on the amount of trade
traveling from these areas to Alaska.
MR. HILPERT answered the question in parts. First he explained the
shipping terminal ordinarily handles the "basic on trade" into the
major Far East markets, primarily Japan, Korea, Taiwan, China and
very little to Southeast Asia, but that's building now and that's
mainly the basic products in and around Bellingham and Whatcom
County. He then explained there has not been a great deal done to
encourage the production of "traffic" utilizing the AMHS. He
indicated there used to be the existence of a viable air connection
with the fresh fish industry traveling into the San Francisco Bay
area and in some cases, Denver. He explained they had services
with both Alaska Air Group and PSA flying out of Bellingham. He
added all of the fish came from the Alaskan market. He stated this
connection no longer exists, but work is being done to re-establish
ties with these locations and relevant airlines. Mr. Hilpert
indicated at this time he was not prepared to give facts and
figures on the re-establishment of these connections.
MR. DARLING commented on an ongoing effort by a number of the
Chambers of Commerce in the Puget Sound area that are engaged in
ascertaining the economic connection between Alaska and Washington
with particular interest to the Puget Sound area.
MS. CALKINS stated that the funding for the connection is currently
underway. She explained the study was originally done in 1988.
However, due to extensive changes, updates are being drafted for
current issues on Alaska and Puget Sound, jointly.
MR. DARLING indicated upon completion of the revised plans they
would send copies to the members of the House Transportation
Committee.
Number 472
REPRESENTATIVE MASEK made reference to an International Shipping
terminal brochure, which presented a breakdown in commodities such
as lumber. She asked what percentage of lumber came from Alaska.
MR. HILPERT indicated they had there first Alaska cargo via barge
approximately three months ago. He explained that another one is
not scheduled at this time. He referred to Whatcom International
Shipping Terminal as one of their basic outlets to overseas sites.
He indicated that the cruise terminal was not seen as an outlet for
shipping and trading. Mr. Hilpert expressed a desire for greater
Alaskan trade. He reiterated the need for an Alaska State Trade
Office.
REPRESENTATIVE MASEK made reference to the trade services depicted
on the Port directory and the five established foreign trade zones.
She asked if the directory was through the federal government.
MR. HILPERT indicated that it was established in 1934 during the
great depression with no changes to the "modus operandi" of the
foreign trade zones. He stated it was "for employment of
Americans." He further explained there was an "active zone" on the
northeast border in Sumas and an active zone in Blaine, which is
basically their western border, as well as one at the Bellingham
airport and one close to Bellingham's Bellis Fair Mall for a total
of four active zones. He continued to address Representative
Masek's question on the Export Trading Company. He indicated this
was a new entity established approximately two years ago and the
Port has succeeded in making small sales into Taiwan and South
Korea. He explained the purpose was to "stimulate trade from the
mom and pops operators within Whatcom County to overseas."
REPRESENTATIVE MASEK asked for clarification on the Foreign Trade
Zone.
MR. DARLING stated "because we now have an accord between Mexico
and Canada, and we had indeed...we had one with Canada earlier on,
before NAFTA was established, we had a good case for Canadian
product being blended with U.S. product coming into the re-export
market, back to Canada or into the U.S. market. Now that Canada is
part of the NAFTA agreement, and we need only to comply with the 50
percent rule, as far as value and content - ad valorem content is
concerned -- because of that, it lessens the influence in the
Canadian market. However, it also creates another opportunity to
allow let's say, someone from Taiwan into the foreign trade zone to
blend product with both U.S. and Canada product and still comply
with the 50 percent rule. For example, something like computer
keyboards, something simple like that, but used quite frequently.
We're doing some of that right now."
CHAIRMEN DAVIS recognized Mr. Gary Hayden, Director of the Alaska
Marine Highway System. Chairman Davis asked Mr. Hayden if he would
care to comment on discussions the Administration has had as far as
any relationships with Bellingham and the AMHS or the operations
itself.
Number 514
GARY HAYDEN, Director, Alaska Marine Highway System, Department of
Transportation and Public Facilities, said he was not aware of any
new discussions. Mr. Hayden emphasized his commitment in the
continuing working relationships established between the Port of
Bellingham and the AMHS. He said the feedback he receives from his
staff is encouraging and things seem to be running smoothly. Mr.
Hayden indicated he did not foresee any changes occurring.
CHAIRMAN DAVIS expressed concern for how policies have gone the
last couple of years with regards to the economic effects of
building and making investments in new buildings, assuring a stable
or growing economy. He made reference to the cruise ships and the
nitch market that the Port is interested in maintaining. Chairman
Davis asked if the cruise ships were sailing into Seattle.
Number 532
MR. DARLING said that currently, because of the Passenger Services
Act, they have to call on a foreign port, so they sail from
Vancouver, B.C. and they've made a major investment in cruise
terminal facilities there. He explained that if federal
legislation were to change, Bellingham would have a great deal of
competition from Seattle because to Bellingham is "sandwiched" in
between Vancouver, B.C. and Seattle.
CHAIRMAN DAVIS asked if Bellingham has been affected by logging
restraints.
MR. DARLING acknowledged Bellingham has indeed been affected by
restraints from logging. He mentioned currently there are 800
people employed at the Georgia Pacific Pulp Mill located on the
waterfront in Bellingham. He said, in fact they represent about 50
percent of the Port's cargo commodities in the terms of pulp. He
indicated that a shortage exists and has been devastating in terms
of obtaining raw materials and are currently looking into importing
materials.
REPRESENTATIVE JAMES inquired as to the contents of the barge
mentioned earlier by Mr. Hilpert with regards to lumber or logs.
MR. HILPERT acknowledged that it was lumber and that it was being
shipped directly into the U.S. market. He indicated it was Sitka
spruce.
REPRESENTATIVE JAMES asked if there was a particular type of wood
timber used at the pulp mill.
MR. HILPERT stated it was hemlock. He explained that some foreign
pine chips were tried on an experimental basis.
CHAIRMAN DAVIS announced that there were probably more questions
and as long as there were no time constraints, the presentation may
continue.
Number 553
REPRESENTATIVE JERRY SANDERS asked what was the foreign source of
timber.
MR. DARLING said that Georgia Pacific just received an experimental
load of ground pine wood chips from Chile.
REPRESENTATIVE SANDERS said he misunderstood Mr. Darling's comment
on where the wood chips were coming from and then inquired as to
what constraints were placed on local timber sales.
MR. DARLING said that Georgia Pulp Mill was importing wood chips
and looking at that process for their pulp manufacturing process.
He indicated that Mr. Hilpert made reference to the lumber that
came from Wrangell, Alaska.
REPRESENTATIVE SANDERS asked where the wood chips came from.
MR. DARLING stated the wood chips came from Chile.
MR. BELL explained ten years ago, 90 percent of the wood chips used
by the pulp mill were of local origin. He explained the change for
this was due to diminishing supply locally and more recently, the
chips have been coming from B.C.
MR. HILPERT explained that B.C. has increased regulations on the
exporting of their wood chips.
REPRESENTATIVE SANDERS asked what type of wood were the Canadian
chips.
MR. DARLING indicated it was "Radiana" pine that was originally
grown in Northern California.
CHAIRMAN DAVIS asked who owns the local ferry systems that operate
out of Bellingham, other than the AMHS.
MR. HILPERT indicated that the San Juan and local ferries were
privately owned.
CHAIRMAN DAVIS commented on an effort being made in Southeast
Alaska to privatize some of the ferry operations. He said he was
looking forward to favorable results on that issue.
MR. HILPERT stated that Mr. Darling was spearheading a potential
service from Point Roberts to Bellingham and the San Juan Islands.
Number 583
CHAIRMAN DAVIS asked about the effect of the recreational fishing
and commercial fishing vessels to the marina in Bellingham. He
asked if the fishing has diminished to the point of concern.
MR. HILPERT indicated there has been a decline of fish resources to
the area. Mr. Hilpert stated there was an initiative being
proposed for statewide restrictions on certain uses of bycatch
equipment with additional restrictions on salmon fishing in select
areas of Puget Sound. He mentioned at the Port, there are about
800 commercial fishing boats within the two marinas and those
numbers are decreasing by 30 to 50 vessels per year. He explained
the bulk of strong fishing production takes place with boats
leaving Bellingham and traveling to Alaska.
Number 590
REED STOOPS, Lobbyist, Port of Bellingham, commented on the issue
of the substantial amount of freight that travels on the AMHS, on
private carriers that use the ferries to supplement the barge
service, both to Southeast Alaska and the Interior. He explained
that Lynden Transport operated several vans per ferry trip,
traveling to all the Southeast communities to supplement the barge
service. He mentioned a number of them go on to Haines and bring
cargo into Anchorage and Fairbanks. He explained it was a matter
of scheduling the larger SeaLand, Totem Ocean Trailer Express
(TOTE) and Alaska Marine Line (AML) barges that bring the bulk of
the cargo into Alaska, but are fixed on a sparse schedule of once
a week or once every two weeks. He indicated that businesses often
need more frequent delivery than what the barges provide. He
explained that the AMHS supplements the infrequency of the barge
runs, by providing an alternative to getting freight moved. He
indicated there is a substantial amount of freight transported on
the AMHS.
CHAIRMAN DAVIS added that Amtrak has some limited freight service
as well. He acknowledged there was a consensus for concerns on
future restraints placed on trade and the development of both the
logging and fishing industries. Chairman Davis indicated these
areas are of major concern to Alaskans as far as jobs and economic
development.
MR. DARLING indicated that they had a quality working relationship
with the Department of Transportation and Public Facility, and
thanked the House Transportation Committee for allowing them to
make their presentation.
ADJOURNMENT
There being no further business to come before the House
Transportation Committee, Chairman Davis adjourned the meeting at
2:12 p.m.
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