Port proposes incentive to boost marine trades

Chris Tucker ctucker@ptleader.com
Posted 4/18/17

Boat storage rates at the Port of Port Townsend could go up, and also down at the same time.

The storage rates for the port’s boatyard are currently 63 cents per linear foot, and the port is …

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Port proposes incentive to boost marine trades

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Boat storage rates at the Port of Port Townsend could go up, and also down at the same time.

The storage rates for the port’s boatyard are currently 63 cents per linear foot, and the port is proposing to increase it to 75 cents. But the rate would drop to 60 cents – a 20 percent decrease from the 75 cent rate – for customers who use the marine trades at the port.

“It’s 3 cents below what you’re currently paying, and if you look at the market, we are by far the least expensive, according to the quoted rates,” said Greg Englin, director of operations and business development for the port.

The Port Commission on April 12 considered the first reading of the rate changes, which are meant to both fill empty spots in the yard and also boost business for the marine trades.

Boat owners who do their own work and do not use the marine trades would not be eligible for the discount.

“The whole point is that we’re trying to promote the businesses here,” Englin said.

HONOR SYSTEM

The 20 percent discount would be based on the honor system.

“It wouldn’t take a whole lot to pass the hurdle. I’d be shocked if there was a fishing vessel that came in that didn’t give any business to the marine trades here.”

The rate change is driven by feedback from port customers who claim the rates are too high.

“Our yards are not fully occupied, so there is no question we should consider pricing as one possible cause,” states a commission document.

“One of the primary things that we heard about was that our storage rates were too high. We’re actually well below the market currently from what we’ve looked at, across the board … Port Angeles was at like 90 cents and it goes up from there: buck, buck and a half, two dollars,” Englin said.

“But we are sensitive to the fact that the yard is slow – you look at the occupancy right now. And we are sensitive to the fact that we want to actually partner with the marine trades and our tenants to promote business.

“We’re very competitive with these rates,” he said.

“It doesn’t mean that we’re the cheapest in the marketplace, but I don’t think that should be the decision maker. We’re hoping that really promotes the marine trade and fills up the yard with more business,” Englin said.

“The great value, truly, of being here is the marine trades. We’re hoping that’s what goes into the buying decision. If it’s only pure price … I can never go cheap enough. That’s how you end up out of business. You’re just chasing the lowest guy down to the basement. But we do think this is very competitive.”

CO-BRANDING

Executive Director Sam Gibboney said it was important for the port to do co-branding with the marine trades and with other Port Townsend businesses, “so that we can really make clear what is the value for somebody to come here as opposed to Ilwaco [Washington] or Toledo [Oregon]. And that includes everything from partnering with downtown business and other accommodations. … The pricing structure is a piece of the marketing strategy, but it is just a piece.”

Englin wasn’t sure how the market might respond to the rate changes, so the port would have to play it by ear.

Other rates also may go up: The overtime labor rate could go from $85 per hour to $90; The round-trip rates for the 75-ton Travelift hoist could go from a range of $7.95-$11.15 (depending on boat length) per linear foot to $9-$14 per linear foot; The 330-ton hoist from $14-$18.20 to $17.86-$23.76.

$200 CHARGE FOR TRUCKS

Commercial box trucks using ramps at the port currently do not pay any fees, but they could soon be charged $200 per day.

“We’re going to put a $200-per-truck fee that I think is more fair and it’s comparable to what they see at other places around Puget Sound for unloading crab and shrimp,” Englin said.

“They might have 10 box trucks that they’re operating right out of here, and that way we get some sort of compensation for that, because it’s pretty heavy use and it conflicts with our other users.”

Gibboney said that last summer, the box trucks were parked “everywhere.”

Gibboney said the alternative to the $200 flat fee was to charge based on weight of the cargo. But charging by weight would be an “administrative headache,” she said, as it is difficult to track poundage.