Ports & Harbors - Publications

     Ports are important to most coastal and river- oriented economies. In Oregon, ports provide a water link to other parts of the state, other states, and even other nations. Oregon ports can also stimulate local and regional economic development.
     Ports can increase the flow of goods and commodities through the communities they serve. Ports can develop property for new or growing industries. Ports can assist in the financing of new or growing businesses. Ports can provide services to existing and new businesses and can attract new customers for those businesses.
     Oregon State University assists all ports through teaching, research, and Extension programs. Comprehensive port management studies are an important part of the University's research and Extension programs. These studies include an indepth analysis of port management, finance, operations, and port development.
     This publication is a compilation and summary of some of the most significant findings of 11 different comprehensive port management studies conducted in the past 4 years. While these findings do not substitute for the specific findings that would result from a comprehensive management study of your own port, they do indicate the kinds of opportunities that are common to most ports and that may be appropriate to your own port. This compilation and summary of some of the most significant findings of past studies is reported in the form of a report to the Port of Beaver, a purely fictitious port. You'll obtain the greatest benefit by reading first the full report to the Port of Beaver, as though it were your port.
     Next, it will be helpful to return to the portions of the report that appear to be most relevant to your port and read the annotations.

INTRODUCTION
     Ports to be studied are first selected by Extension/Sea Grant personnel. Selection is based upon the condition of the port, port characteristics, and the commissioners' interest in the study.
     An initial interview with port staff and commissioners helps identify the emphasis of the study and guides in the selection of experts for the study team. Study team members may come from universities, government agencies, other ports, and from private industry.
     The study team conducts onsite interviews with staff, commissioners, community leaders, clients, and others who can provide useful information. The study team also studies numerous documents relating to the port. Following the onsite visit the team presents an oral report. This is followed some weeks later by a written report.
     The following report to the fictitious Port of Beaver is based on 11 comprehensive management studies and is not intended to represent any particular port on the West Coast.

PORT OF BEAVER STUDY PROCEDURE
     The study team for the Port of Beaver was assigned the following responsibilities:

T. Dowd--port finance, port accounting, statutory authority
W. Price--port administration, port organization
R. Rombalski--port operations, public realtions, port management
F. Smith--study coordination, study reports, economic development, and economic impact

The study team interviewed the following people in and around the Port of Beaver:

Four port commissioners
Port manager
Port harbormaster
Port secretary
Port bookkeeper
Port accountant
Port attorney
Two members of port advisory committee
Two members of port budget committee
City manager
City councilperson
City planner
Two county commissioners
County economic development specialist
County Extension agent
Newspaper editor
Secretary of the chamber of commerce
Presidents of two fishermen's associations
Three commercial fishermen
Two sports fishermen
Two seafood processors
Two bankers
Three port tenants
Barber
Service station attendant
Motel clerk

The study team also examined all port and city facilities and looked at a variety of documents, including:

Minutes of port meetings
Port financial reports
Port loan files
Port tariff files
Port budgets
Land zone maps
Land use maps
Flood zone maps
Public utility maps
Four port economic development
City comprehensive plan
County comprehenvise plan
County employment statistics
County economic data
Corps of Engineers studies

The significance of these strengths will be seen in the Opportuntities for Improvements section of the report. However, most ports have similar Strengths that offer little comparative advantage over other ports.

Regardless of the physical resources possessed by any port, its success is most dependent upon personnel, including commissioners. If the port personnel are intelligent, motivated, and creative, any port has a change to be successful.

An inplace viable business is a major asset for any port. lt provides a base upon which projects can be built.

While most ports comply with the statutory accounting requirements, few prepare enough accounting information for regular port decisionmaking. There is ususally room for much improvement in Port accounting. Also, while ports are unlikely to go bankrupt, they can be severely handicapped if cash flow cannot be maintained. Delinquent accounts are common causes of cash flow problems.

Ports have not be very sucessful in obtaining voter approval to exceed the 6% tax limitation. However, with a well organized information program, some Ports have succeeded. Increased revenue provide excellent leverage for economic development.

Increase Economic Development
     The Port of Beaver has many opportunities to increase economic development. Other opportunities for improvement identified in this report will contribute to economic development for the community as well as for the port.
     For example, with improved cash flow, improved credit rating and self-supporting services, the port will have the financial leverage to promote and finance new industry and business.
     Also, improved property layout and management will make the industrial land more attractive to new tenants. Current property uses generate conflict. For example, the storage of industrial equipment next to a recreation site causes conflicts.
     The shipyard noise is incompatible with the campground and nearby restaurant. There are traffic flow problems between moorage clients, industrial property clients, and nearby residents. Careful sitting of tenants will reduce these types of conflicts.
     Given the natural resource base of the port and the region, there are two types of industries for which the port has a comparative advantage: commercial fishing service and tourism. These two industries are complementary and take advantage of the excellent water access of the port and the attractive natural environment of the region.
     There are a number of commercial and recreational fishing services already in the community. Emphasis should be on expansion and improvement of these services. The port may wish to fund a survey of the services available and the kinds of services the commercial fishing fleet needs. This will guide the port in providing financial assistance for expanding existing businesses and for helping to establish new ones.
     The trend in the tourist industry is away from campers, motor homes, and mobile tourists--and towards destination resorts that offer complete vacation experiences. With the existing airport on port property and vacant land near the water, there is an opportunity to develop a destination resort at the port.
     The nearest destination resort is more than 70 miles away and is situated in a different (nonwater-oriented) environment. The port should upgrade the airport runways, taxiways, and the terminal to attract and accommodate corporate clients from out of state.
     A destination resort can spawn complementary small businesses in the region--boat tours, video rentals, horse rentals, clothing boutiques, etc. If the resort is oriented towards fly-in tourists, many services at the airport can also be developed.

In identifying economic development opportunities, a port must first consider its comparative advantage over another ports and communities. Ports have a comarative advantage over most nonport communities by being near the se or major river. Ports also have more statutory authority to help finance economic development. While this helps attract winners, it makes it eqully easy to attract losers to the community. Nearly everything else your port can offered by another port or a nonport community. Therefore, your port must simply do it better.

Improve Land Use
     There is considerable opportunity to improve the local economy with some specific land use improvements. Land use designations can be improved, a land use policy can be developed, and some improvements can be made on the property.
     Current statutory land use designations are very detailed on the port property. Economic development opportunities will be enhanced if the land use designation is for marine-related activities only.
     This would reduce the necessity to request zone changes when development opportunities came along. However, if the zoning authorities do not wish to limit the use of this land to marinerelated activities, an even more general zoning might be sought.
     The airport terminal currently occupies one of the most valuable pieces of property in the region. Before the port proceeds with installing utilities on this property, it should consider moving the terminal to the other side of the runway, thereby freeing up property for a higher use (such as the destination resort).

Port Policy
     Before retaining a consulting firm to develop a master plan, there is an opportunity to begin developing a master port policy that would include a master plan for the portis property. Port policy development should become the responsibility of the commissioners, supported by at least one publ ic advisory committee.
     The port master policy should be more than a land use plan. It should include general economic goals for the port and criteria for accomplishing these goals. The following steps should be included in the policymaking process:

1. Background work on existing studies and information relative to port property.

2. Close coordination with the county and city on planning policies.

3. Familiarization with permit requirements of Federal and state agencies and with statewide standards.

4. An appraisal of land use needs of existing port uses. For example, how many square feet of land are needed for car parking, trailer parking, expansion of other existing operations? These estimates should be projected for at least 5 years, with a rough estimate for a 20-year period.

5. An enlarged air photo or detailed site map to visualize current and projected uses.

6. An appraisal of realistic development options, in terms of site location, marketing, and overall community objectives. Help should be sought from the Department of Economic Development, the regional development council, city manager, county staff, county Council of Governments, Association of Oregon Industries, Oregon Business planning Council, students from OSU or U of 0, and other sources.

7. Development and adoption of a set of goals that reflect community needs and desires. Allen Bell, in a research paper for the OSU Department of Geography entitled, Oregon Port Districts as an Element of Economic Development, found-that" successful port Management and development requires sound planning..... Those ports which have implemented planning techniques have met with considerable success..... Development objectives should be formulated around the physical, environmental, economic, and social opportunities and constraints of the port. Secondly, after the objectives have been identified and studied (engineering and economic aspects), and priorities established, a general operational policy must be developed to assure implementation of these goals. Developing port objectives and operating policy in isolation is insufficient in itself..... Intime the absence of coordination results in efforts which are expensive, duplicative, and counter-productive...."

8. After goals and policies are formulated (both on a 5 year and a 20-year basis), the port should consider publishing an operations and procedures manual, outlining the port's history, land uses, goals and policies, and operations procedures. Such a manual would be helpful to other units of government, citizens, and prospective clients in understanding the port.

9. Joint projects with the county and city to implement goals and policies would help identify the port as an integral part of local development

10. Develop an implementation plan for port objectives. For example, investment packages could be prepared for port property development describing facilities, setting, markets, financing, and projected return on investment.

Property Use Improvements
     There is an opportunity to obtain higher use of some of the port property. For example, the fishing gear storage area could be consolidated, with the same amount of gear occupying less than half the space currently occupied.
     Also, parking is currently disorganized. At a minimum, lines should be painted on the pavement to guide the parking of cars and boat trailers, and trailer parking should be segregated from car parking.
     The amount of space required for traffic flow could be reduced with some rerouting and curbing to eliminate random traffic patterns. There is an opportunity to place more fishermen's service businesses right next to the docks if parking space for fishermen's vehicles is provided elsewhere.

Improve Community Relations
     There are many opportunities to improve community relations. The benefits include: (a) easier implementation of projects, (b) greater success with tax measures and bond issues, (c) improved port staff performance, (d) direct material and financial support and (e) more clients.
     One of the first opportunities for improving community relationships is to tell the community what the port is all about and what the port is doing. This can be done through the local newspaper and radio station and by personal presentations at civic club meetings throughout the community.
     It is important to recognize that the local newspaper and radio station appreciate being given newsworthy items. One person on the port staff should be the liaison with the media and should be alert to opportunities for getting the port's name in the news.
     The media will be happy to share disasters, mistakes, scandal, etc., with the public. It is up to the port to tell the good news and to place some perspective on the bad news.
     The port can also offer tours, give seminars on hot portrelated topics, and provide open meetings where all questions are welcome.
     There is an opportunity to improve the physical appearance of the port. For example, old machinery, lumber, papers, fishing gear, etc., should be cleaned up and not allowed to accumulate. Landscape screening should be planted where trash cannot be avoided and to improve the appearance of buildings.
     Erect friendly signs to make local taxpayers welcome to their port. Place benches, tables, vla1kways, etc., in strategic locations so visiting taxpayers can get a good feeling for the activities of their port. Develop an attractive logo and motto to use around the port and in correspondence.
     Finally, there is an opportunity to improve the relationships with city and county officials. The regular commission meeting date should be rescheduled so that it does not conflict with the city council meeting. Specific invitations should be issued to the city counci1persons and county commissioners to attend the port meetinqs. When these people are in attendance, they should be introduced and be made to feel welcome and important.

Most taxpayers have an inadequate understanding of port’s purposes, authority and activities. To develop and maintain community support, it is necessary to have an active and aggressive community relations program. If you find that you must defend your port’s activities your community relations program isn’t active aggressive enough.

Improve Port Administration
     Each commissioner brings special talents and interests to the port. These should be recognized and used. For example, one commissioner may be knowledgeable about the recreational user aspects of the port and can be a resource person on this topic. Another may be the economic development resource person; another, the community relationship person, etc.

Clarify relations between commissioners and staff.
     Commissioners do not make operational decisions. That is the responsibility of the manager. The role of the commissioners as policymakers should be reviewed frequently, among the commissioners and between the commissioners and the manager. It is especially important to maintain a professional relationship between the manager and the commissioners yet retain good communication.
     The port is understaffed, and commissioners are providing some useful volunteer services beyond normal commissioners' responsibilities. This is of great benefit to the port, but it calls for a clear understanding of the corn missioner role, the manager role, the harbormaster role, etc.
     It is especially important to leave all direction and management of staff to the manager. Commissioner interference in operational decision making makes the manager's job very difficult.

Improve meetinq aqenda.
     During regular commission meetings, topics from the floor should only be to provide information on an existing agenda item or a request for a future agenda item. Any item calling for commissioner decision must be on the agenda before the meeting. Public input and participation at the commission meetings are good, but it should be managed so that it fits the agenda.
     The agenda should be prepared early enough to appear in the paper the week before the meeting. Commissioners and staff should cooperatively prepare the agenda. Also, commissioners need a reference book with port policies, maps, financial data, fees, tenants' names, etc.
     This book should be updated for each regular meeting and made available to commissioners several days before the meeting.

Improve management time.
     The manager should start a diary and monitor the use of his time. If kept accurately over several months, the diary might reveal several nonproductive uses of time. For example, the manager's office is accessible to the public, and many people take his time for trivial matters. Also, there are many activities that could readily be delegated to other staff and would require very little supervision.

Recognize staff performance.
     Job descriptions for all staff should be immediately developed. These can be developed with the cooperation of current staff, recognizing that the job description is for the work performed and responsibilities fulfilled, not for the person presently occupying the job. The job description should include pay used for motivation and evaluation.
     It is important for staff to be recognized for good performance and to have some hope of advancement. It may require only a compliment, a new title, an award, or even a raise--but it greatly enhances productivity and esprit de corps. Staff should know that they can grow in their present position and can move up in the port. This should be based upon objective evaluation and not just good friendships.

It is extremely difficult to keep commissioner and staff responsibilities and authority separated. Never the less, ports that delineate these responsibilities and this authority – and abide by this delineation – have a comparative advantage over-other ports. Employed to do!

Summary
     The Port of Beaver has good property, a good site, outstanding natural resources, a knowledgeable and interested staff, enthusiastic commissioners, and an inplace structure ripe for further economic development.
     The greatest short-run need is for better financial information. Immediate improvements in the accounting system will help improve the management and administration. Actual financing situations can be improved with increased tax revenue (up to the 6% limitation), increased user charges, and some further economic development.
     Small changes in zoning will reduce future problems in development conflicts. Increased and improved services to the commercial fishing industry and the recreational fishermen offer the best opportunity for rapid development. In the meantime, the port should develop concerted policy for long term development. Prime development opportunities appear to be in the recreational/tourist/convention industry. Once the policy is developed, it should be widely promoted. Sell the assets of the port and why they fit a particular kind of development.
     There are many opportunities for the port to improve its relationships with local communities. The first is to change the commission meeting dates. Others include more community involvement, improved port physical appearance, and telling the port story.
     Finally, staff performance can be improved. Job descriptions and an objective evaluation system will help. The role of each staff person and the commissioners should be kept in mind.
     The port has a promising future and the potential for becoming the most important economic development force in the county.