Port of Kalama Comprehensive Plan

Port of Kalama Comprehensive Plan 

June 1, 2015 

 

Page 27 

In the Pacific Northwest, nearly all wheat and barley exports are handled through ports on 

the Columbia River.  Much of the wheat exported through the Pacific Northwest is grown in the 

Great Plains, but the ports also handle substantial volumes of wheat grown in Eastern 

Washington, Oregon, Idaho, Montana, and Utah.  Approximately 85% to 90% of Washington 

wheat and 90 percent of Oregon wheat is exported.

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The way that wheat moves to export elevators varies based on where it is grown.  

Essentially all of the wheat from the Midwest is shipped to Columbia River export elevators by 

rail, while Pacific Northwest wheat moves by both rail and barge. 

Coarse grains are primarily used as animal feed.  World competition in the coarse grain 

market is intense, and Washington exporters vie for sales against Brazil, Argentina, and others.  

Washington ports also face competition from other U.S. port regions, specifically ports on the 

Gulf of Mexico.  Ocean freight rate and rail freight rate differentials can cause major shifts of 

exports between Pacific Northwest and Gulf Coast ports. 

Soybeans are used for animal feed and for human consumption.  Soybean exports have also 

increased significantly in the last five years.  There continues to be strong demand for vegetable 

oils for food consumption and for protein meals used in livestock production and biodiesel.  

The export markets are large and growing, particularly in China.  As with other crops, there is 

strong international competition (mainly from Brazil and Argentina). 

Trends & Forecast 

Pacific Northwest grain export volumes grew rapidly from 2000 to 2008, reaching a peak of 

nearly 35 million metric tons.  Volumes declined to around 30 million metric tons in the period 

from 2009 to 2012.  In 2013, volumes dropped to around 25 million metric tons, mainly due to a 

bad harvest year.  In 2014, grain exports rebounded to 34 million metric tons. 

As shown in Figure 13, most of the growth has occurred on the Washington side of the 

Lower Columbia River, with market share increasing from around 39 percent between 2007 and 

2012 to 50 percent or more between 2012 and 2014.  In each year since 2002 Kalama’s share of 

the region’s grain exports has fluctuated from approximately 25 percent to 32 percent.  During 

that same period the volume exported through Kalama grew from less than six million metric 

tons to as much as 10.5 million metric tons. 

Market shares on the Oregon side of the Lower Columbia River decreased from 21 percent 

between 2007 and 2012 to 18 percent between 2012 and 2014.  Likewise, the market shares in 

Puget Sound decreased from 39 percent between 2007 and 2012 to 23 percent between 2012 and 

2014.  In Grays Harbor, however, grain exports grew from essentially nothing prior to 2012 to 

1.6 million metric tons in 2014, and with market share of four percent from 2012 to 2014. 

                                                 

1

   Source: Washington Wheat Commission for Washington and U.S. Wheat Associates for Oregon. 

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Port of Kalama Comprehensive Plan 

June 1, 2015 

 

Page 28 

Figure 13 – Pacific Northwest Grain Export Trends (1,000 Metric Tons) 

 

Note:  excludes domestic shipments and receipts 

Source:  WISERTrade 

Completion of the Columbia River navigation channel deepening project has encouraged 

significant recent investments in capacity expansions at grain terminals.  Both TEMCO and 

Kalama Export Company have recently completed projects that increase combined annual 

capacity from approximately 10 million metric tons to more than 14 million metric tons.  

Nearby, expansions were also completed in both Portland and Vancouver, and a new export 

terminal was constructed in Longview.  The total capacity of Columbia River export terminals 

has increased from approximately 21 million metric tons to more than 37 million metric tons.  

As noted above, the total volume of grain exported through these terminals in 2014 jumped to a 

new record of 25 million metric tons. 

Growth is projected to be modest for all sub-regions of the Pacific Northwest for several 

reasons.  Grain exports ramped up significantly between 1998 and 2008, increasing by 

approximately 15 million tons, and nearly doubling in volume.  This occurred due to a shift of 

exports from the U.S. Gulf ports to the Pacific Northwest, caused by favorable relative 

transportation costs.  From 2009 to the present, grain exports have ranged from 25 million tons 

to 34 million tons.  According to the USDA, U.S. exports are projected to grow modestly in the 

future due to increased international competition.  The one exception may be in soybean 

exports (especially to China).  As a result, grain exports through Pacific Northwest ports are 

expected to remain in the range of 30 million tons to 40 million tons through 2019. 

The potential use of small cape size vessels at U.S. Gulf ports and at South American ports 

to take advantage of the larger Panama Canal is a potential threat to Pacific Northwest ports.  In 

addition, there has been an increase in containerized grain exports.   

Opportunities include potential shifts in trade and consumption patterns.  Exports to China 

are expected to increase due to the rising number of middle class households.  Increased 

volumes of grain exports from Canada have also been moving through Columbia River ports. 

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