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.