Port of Kalama Comprehensive Plan
June 1, 2015
Page 40
Industrial Uses
Turning Point, An Economic Development Strategic Plan
7
prepared in 2010 for the Cowlitz
County EDC suggested the following target sectors for industrial growth:
Specialized manufacturing (including
advanced manufacturing, light industry,
regional suppliers, and energy equipment assembly).
Plastics and synthetics
Metal-related processing
Agriculture-related chemicals
Farming equipment and supplies, including fertilizers and pesticides
Clean technology (products for wind, solar, biomass/biofuels, hydrogen fuel cells,
nuclear, and “clean-burning” coal processes, among others)
Healthcare (including general medical and healthcare services, outpatient and
ambulatory services, and health informatics)
Advanced logistics & distribution (including final assembly of imported goods)
Professional/technical services (including engineering, testing, information
technology, and regional headquarters).
These sectors appear to still be valid targets and could be incorporated in the plan for the
Spencer Creek Business Park. Many of these sectors may also provide a foundation for an
Innovation Partnership Zone.
Energy Intensive Manufacturers
The recent increase in production of natural gas coupled with prices that are significantly
lower than in Europe and Asia has created an opportunity for further development of energy
intensive industries in the U.S.
8
Key energy-intensive sectors are expected to increase their U.S.
operations in response to declining prices for their energy inputs, including;
Metals and Machinery
o
Iron and steel products
o
Fabricated metal products
o
Machinery
Chemicals
and related products
o
Resins, synthetic material products
o
Basic organic chemical products
o
Plastics and rubber products
o
Agricultural chemical products
o
Nonmetallic mineral products
7
Source: Turning Point, An Economic Development Strategic Plan for the Cowlitz Economic Development
Council, 2010 by TIP Strategies.
8
Source: “IHS Global America’s New Energy Future: The Unconventional Oil and Gas Revolution and the US
Economy Volume 3: A Manufacturing Renaissance - Main Report, September 2013
Port of Kalama Comprehensive Plan
June 1, 2015
Page 41
In addition, production of natural gas and crude oil has created
opportunities for import
substitution as well as waterborne shipment of related energy products to both domestic and
international markets, including:
Butane, propane
Crude oil
Petroleum products
LNG
The American Chemistry Council has estimated that as of September 2014, approximately
197 chemical industry projects valued at $125 billion have been announced for development,
including both construction of new factories as well as expansions and improvements at
existing plants to increase capacity. This is a significant increase from March 2013 (97 projects
valued at $72 billion). Approximately 61% of the investment is by firms based outside the
United States.
The U.S. chemical industry and other energy intensive industries are poised to capture
market share from around the world. According to IHS Global, North American chemicals and
plastics production will double by 2020 while Western Europe’s falls by 1/3. This has not gone
unnoticed in Europe, where chemical producers are very concerned about loss of market share:
“When people choose whether to invest in Europe or the U.S., what they think about most is the
cost of energy. The loss of competitiveness is frightening.” [Antonio Tajani, European Industry
Commissioner]
“Natural gas prices in Europe are three times as high as in America, and electricity prices are
twice as high…It's very hard to imagine how Europe can recover.” [Paolo Scaroni, CEO, Eni]
Many of these industries (chemical products, primary metal manufacture and fabricated
metal manufacture) are already key sources of employment in Cowlitz County and Southwest
Washington. In addition, planning is underway throughout the Pacific Northwest for projects
related to waterborne shipment of energy products.
The energy intensive category appears to present growth opportunities in Kalama and the
region. This includes providing space existing producers and shippers to expand, as well as to
attract new producers and shippers to the region.
Natural Gas Advantage
The Port of Kalama is in a strong position to attract tenants who use natural gas as a key
input to their processes, such as the proposed methanol production plant. The Port has large
parcels of industrial land that are located on or near the Columbia River deep-draft navigation
channel, and which have excellent rail and highway access. The Port’s properties are also
located a short distance from the Williams Northwest Pipeline, which is a major gas
transmission line that provides access to British Columbia, Alberta, Rocky Mountain, and San
Juan Basin gas supplies.
The Northwest Pipeline is capable of supplying large volumes of gas to potential tenants.
Prices of natural gas have dropped substantially in recent years as supplies have increased,
which has made domestic manufacturers competitive in world markets for value-added
products based on natural gas. The jobs associated with this type of manufacturing tend to pay