2017 Merchants Exchange Annual Report

Serving the Columbia River maritime community since 1879.

2 0 17

ANNUAL REPORT

MERCHANTS EXCHANGE OF PORTLAND, OREGON WWW.PDXMEX.COM

Message from the Executive Director With the support and commitment of our members, Board of Directors and knowledgeable staff, the Merchants Exchange continues to serve our members and the maritime transportation industry with our mission, “To be the leading provider of information and related services to all stakeholders of the Pacific Northwest intermodal transportation system and to support related business interests for domestic and foreign commerce.” I am pleased to present the Merchants Exchange 2017 Annual Report.

This report provides us the opportunity to recognize our members, client associations, Board of Directors and the endeavors of the Merchants Exchange staff. Furthermore, the Annual Report allows us to showcase our services and Five Year Strategic Plan Initiatives, along with our Financial Statement for the year ending December 2017.

2017 was a very busy year at the Merchants Exchange! Some highlights of our year include: ▪▪

Awarding the 2nd Annual Merchants Exchange Excellence Award to Mr. Amer Badawi, Columbia Grain Inc, at our 2017 Merchants Exchange Annual Meeting. Congratulations, Amer!

▪▪

Generating monumental progress on our 2015-2019 Strategic Plan including our Marketing and Communications Assessment & Plan and our Succession Planning Action Initiatives.

▪▪

Continuing to grow and develop the Shipping Education Series–a continuation of the Maritime Education Program.

▪▪

Our very boisterous and successful “1st Annual Bocce Tournament” during our 2017 Open House, raising $1,320 to benefit the Merchants Exchange Scholarship Fund. Exchange staff members John Cordasco and Samantha Steerman were the victors. Plans are already underway and teams are being formed for 2018!

▪▪

Growing our member and community offerings in conjunction with the Customer Needs Strategic Planning Action Initiative. In response to our members requests, we launched the Merchants Exchange Daily News, continued to grow the content and readership of The Exchange, our bi-monthly newsletter, and developed new email-to-text notification services for the Communications Center.

During the year, we were also pleased to welcome several new members to the Merchants Exchange team: Shauna Dallas, Communications Specialist; Jonathan Nichol, Communications and Computer Systems Manager; and Mason Sullivan, Communications and Accounting Assistant. They join the other professional staff members that keep the Exchange running smoothly.

Included in this Annual Report, beginning on page 23, is the 2017 Financial Statement with the Independent Account’s Review Report prepared by Rostad & English, Certified Public Accountants.

I am very pleased with the direction the Merchants Exchange is going, and all that we have accomplished – we continue attaining our goals and objectives, all which ensure sustainability of the Merchants Exchange, and our ability to continue to serve you, our members, in 2018. Thank you for your ongoing support!

Elizabeth Wainwright Executive Director Merchants Exchange of Portland

1

Cover photo courtesy of James Spitzer, all rights reserved.

Other photos are courtesy of the Merchants Exchange.

Merchants Exchange of Portland

Table of Contents Message from the Executive Director ����������������������������������������������������������������������������������������������������������������������������������1 Staff Contacts ���������������������������������������������������������������������������������������������������������������������������������������������������������������������������2 Heritage of Service ������������������������������������������������������������������������������������������������������������������������������������������������������������������3 Exchange Organization ����������������������������������������������������������������������������������������������������������������������������������������������������������4 Board of Directors �������������������������������������������������������������������������������������������������������������������������������������������������������������������5 Membership �����������������������������������������������������������������������������������������������������������������������������������������������������������������������������7 Progress Report �����������������������������������������������������������������������������������������������������������������������������������������������������������������������9 Communications Center ������������������������������������������������������������������������������������������������������������������������������������������������������11 Maritime Intelligence ������������������������������������������������������������������������������������������������������������������������������������������������������������12 Year-End Statistics �����������������������������������������������������������������������������������������������������������������������������������������������������������������13 Associations ���������������������������������������������������������������������������������������������������������������������������������������������������������������������������17 Financial Report ��������������������������������������������������������������������������������������������������������������������������������������������������������������������23

Staff Contacts Staff Name

Phone

E-mail

Aaron Garber-Paul_____________________(503) 220-2092_____________________ garberpaul@pdxmex.com Bekah Canfield________________________(503) 220-2097_____________________ canfield@pdxmex.com Carl Boelter___________________________(503) 220-2089_____________________ boelter@pdxmex.com Chann Noun__________________________(503) 220-2041_____________________ noun@pdxmex.com Curtis Cannizzaro _____________________(503) 220-2084_____________________ cannizzaro@pdxmex.com Ellen Wax_____________________________(503) 220-2064_____________________ wax@pdxmex.com Holly Robinson________________________(503) 220-2099_____________________ robinson@pdxmex.com John Cordasco ________________________(503) 228-4361_____________________ cordasco@pdxmex.com Jonathan Nichol________________________(503) 220-2094_____________________ nichol@pdxmex.com Katrina Dahlke________________________(503) 220-2095_____________________ dahlke@pdxmex.com Liz Wainwright ________________________(503) 220-2091_____________________ wainwright@pdxmex.com Mason Sullivan________________________(503) 220-2098_____________________ sullivan@pdxmex.com Margerie (Sedam) Vis___________________(503) 220-2093_____________________ sedam@pdxmex.com Rindy Primeau________________________(503) 228-4361_____________________ primeau@pdxmex.com Robin Wright__________________________(503) 220-2088_____________________ wright@pdxmex.com Shauna Dallas_________________________(503) 228-4361_____________________ dallas@pdxmex.com Samantha Steerman____________________(503) 228-4361_____________________ steerman@pdxmex.com Sue Blomgren__________________________(503) 220-2043_____________________ crsa@pdxmex.com Thomas Semrau________________________(503) 220-4361_____________________ semrau@pdxmex.com

2017 Annual Report

2

Heritage of Service - Celebrating 138 Years

In 1879, Boss Shenck’s Saloon on the Portland waterfront was an early gathering place for the maritime trade. News of ship arrivals was posted by patrons, and the establishment became the birthplace of the Merchants Exchange of Portland, Oregon.

Since that time, the Merchants Exchange has grown and expanded in order to keep pace with the ever-changing maritime trade needs and advancing technology. Operating 24 hours a day, seven days a week, the Merchants Exchange is an integral part of the maritime industry, providing the Lower Columbia and Willamette Rivers’ maritime and community with valuable information and services.

Today, members of the Merchants Exchange include, but are not limited to: vessel agents and operators; admiralty attorneys; customs brokers; tug and barge companies; freight forwarders; stevedores; ship repair services, and port authorities.

In addition to providing 24 hour vessel intelligence, answering service and cargo and vessel statistics, the Merchants Exchange also provides extensive association management services. Through its association management, the Merchants Exchange has brought together a diverse group of organizations, and has promoted and enhanced the common business interest of the maritime community.

The Merchants Exchange also has a long history of involvement in the grain industry. In 1914, the Merchants Exchange established the region’s first official market for trading wheat and created the Portland Grain Exchange, which became the Merchants Exchange’s first client association. Since that time, the Merchants Exchange has worked to meet the services and needs of its members and expanded its services to support the client associations that enter into a Merchants Exchange Association Service Agreement. These client associations look to the Merchants Exchange for accounting, administrative and program management services, association history and guidance for their ongoing success. A complete list of client associations can be found on page 17.

The Merchants Exchange has gained direct experience in grant management and administration through participation as designated Fiduciary Agent and Direct Recipient for the Port Security Grant Program funds for the Columbia-WillametteSnake River Port Area for the grant fiscal years 2007 through 2011. Since that time, we have demonstrated our knowledge and skill in grant management and administration with successful applications and awards to FY-2012, 2013, 2014, 2015, 2016 and 2017 applicants. The Merchants Exchange is proud to partner with our members and many local organizations, providing comprehensive grant application and award process management and administration.

The Merchants Exchange continues to seek opportunities to serve its members and the maritime community as needs and government regulations change.

Membership Board of Directors Executive Director Exchange Staff

3

Merchants Exchange of Portland

Exchange Organization Executive Director Liz Wainwright

Accounting Department Controller: Chann Noun Accounting Specialist & Grants Administrator: Katrina Dahlke

Administrative & Communications Center Communications & Administrative Services Manager: Robin Wright Communications & Computer Systems Manager: Jonathan Nichol Executive Administrator: Bekah Canfield Communications Specialist Lead: John Cordasco Communications Specialists: Rindy Primeau, Thomas Semrau, Samantha Steerman, Shauna Dallas Communications & Accounting Assistant: Mason Sullivan

Association Management Clean Rivers Cooperative

Maritime Commerce Club

Carl Boelter, Assistant Manager Curtis Cannizzaro, Administrative Coordinator

Margerie Sedam, Association Director Rachel Perry, Association Administrator

Columbia River Custom Brokers & Forwarders Assoc.

Merchants Exchange Scholarship Fund

Margerie (Sedam) Vis, Association Administrator

Margerie (Sedam) Vis, Association Director Rachel Perry, Association Administrator

Columbia River Shippers Association Liz Wainwright, Independent Administrator Sue Blomgren, Account Representative Rachel Perry, Association Administrator

Columbia River Steamship Operators Association

Maritime Fire & Safety Association Liz Wainwright, Executive Director Holly Robinson, Oil Spill Contingency Program Manager Curtis Cannizzaro, Administrative & FPAAC Program Manager

Chann Noun, Association Accounting Administrator

Pacific Northwest Grain & Feed Association

Lower Columbia Region Harbor Safety Committee

Working Waterfront Coalition

Bekah Canfield, Association Administrator

Margerie (Sedam) Vis, Association Director Ellen Wax, Executive Director Bekah Canfield, Association Administrator

2017 Annual Report

4

2017 Board of Directors Term expires (listed in parenthesis) in February of the given year Mark Jensen (18) President TEMCO 800 N River Street Portland, OR 97227 (651) 355-3669 mark.jensen@chsinc.com

Ken Anderson (18), Vice President Shaver Transportation Co. 4900 NW Front Ave. Portland, OR 97210 (503) 228-8850 kena@shavertransportation.com

Mike Morgan (20) Treasurer Columbia Export Terminal, LLC 15660 North Lombard Street Portland, Oregon 97203 (503) 978-2544 mike.morgan@t5-cet.com

Ryan Statz (19) Secretary Columbia Grain Inc. 1300 SW Fifth Ave, Ste 2929 Portland, OR 97201 (503) 535-5642 rstatz@columbiagrain.com

Bart Goedhard (19) Ports America 3211 West McGraw Street #99281 Seattle, WA 98199 (206) 257-8998 bart.goedhard@portsamerica.com

Carl Bertapelle (20) Talon Marine Services, LLC 2303 N Randolph Ave., Suite 4 Portland, OR 97227 (503) 679-6166 carl@talonships.com

Todd Krout (20) Port of Vancouver USA 3103 N.W. Lower River Rd Vancouver, WA 98660 (360) 993-8642 todd.krout@portvanusa.com

Doug Lenz (ex officio) President, Clean Rivers Cooperative Columbia Pacific Bio Refinery 81200 Kallunki Road Clatskanie, OR 97016 (503) 728-7027 dlenz@globalp.com

David Nagel(19) Cascade Marine Agencies, Ltd. 511 SW 10th Ave, Ste 1004 Portland, OR 97205 (503) 807-7430 dnagel52@msn.com Kristin Meira (18) Pacific Northwest Waterways Association 516 SE Morrison St., Ste 1000 Portland, OR 97214 (503) 234-8551; fax (503) 234-8555 kristin.meira@pnwa.net Chris Cummins (18) General Steamship Corporation 3120 N.W. Harborside Drive, Suite 109 Vancouver, WA 98660 (360) 573-5465 chris.cummins@gensteam.com

5

Andrew Holbrook (ex officio) President, Maritime Fire & Safety Association Kinder Morgan Energy Partners 5800 NW St Helens Road Portland, OR 97210 (503) 220-1257 andrew.holbrook@kindermorgan.com Capt. Rick Gill (ex officio) Columbia River Pilots 13225 N Lombard Portland, OR 97203 (503) 289-9925 rgill@colrip.com Legal Counsel: Tyson Calvert Lindsay Hart LLP 1300 SW 5th Ave., Ste 3400 Portland, OR 97201-5640 (503) 226-7677 tcalvert@lindsayhart.com

Merchants Exchange of Portland

Role of the Board

2018 Board of Directors Nominees Tug and Barge: Geoff Doerfler, Tidewater Barge Lines Non-Member/Independent: Roger Hsieh, BNSF Railways Agent: Chris Cummins, General Steamship Grain: Mark Jensen, TEMCO The principal role of a Board member is stewardship. The directors of the Merchants Exchange are ultimately responsible for the management of the affairs of the Merchants Exchange. This requires active participation. The Board must ensure that the organization is operated for a not-for-profit purpose; it may not be operated for private benefit. Proper stewardship requires that the organization’s assets be held “in trust” to be applied to its mission.

One of the most important functions of the Board of Directors is keeping the resources and efforts focused on the mission.

This requires the Board to have an adequate understanding of Merchants Exchange programs, staff and resources available to achieve the organization’s goals. As a starting point, every Board member should be familiar with the organization’s Articles of Incorporation, Bylaws, Role of the Board Policy and Administrative Authority of the Executive Director.

The Board fulfills its role of stewardship through Board of Director meetings and participation in Board Committees. Standing Committees include: Customs of the Port Executive & Management Finance & Budget Grain Technical & Business Development The Board is not expected to manage the day-to-day activities of the Merchants Exchange - that is the responsibility of the Executive Director. It is the Board’s responsibility to hire the Executive Director and to oversee that person’s work to see that the organization is fulfilling its mission. The Board annually reviews and assesses the Executive Director’s performance.

A related function of the Board is to set the compensation of the Executive Director. The compensation should be reasonable for the services rendered and compare favorably to similarly situated executives.

The Board oversees the effective use of the resources of the organization. Policies should be adopted and large transactions approved to ensure that the organization’s assets are not misapplied or wasted. The Board should ensure that the assets are invested prudently, avoiding high risk investments and employing some diversification of investments.

To guide the board of directors and staff in the management of the organization, the Exchange utilizes strategic planning.

At the 2016 Annual Meeting, staff reported on the completion and results of the 2010-2014 Strategic Plan, and introduced the 2015-2019 Strategic Plan cycle. Details on the 2015-2019 strategic plan can be found on page 9 of the Annual Report.

2017 Annual Report

6

2017 Membership ACGI Shipping Company, Inc.

Jones Stevedoring Company

Alexander Gow, Inc.

JT Marine Inc.

Anchorage Launch Service

Kalama Export Company

Blue Water Shipping, Inc.

Kinder Morgan Bulk Terminals

Columbia River Steamship Operators’ Association

Kinder Morgan Energy

Cascade General / Vigor Industrial

Kirby Offshore Marine LLC

Cascade Marine Agencies

K-Line America

CHS Inc / Temco LLC

Lindsay Hart, LLP

Columbia Export Terminal

Louis Dreyfus Company

Columbia Grain, Inc.

McCall Oil

Columbia Metal Works, Inc.

McDonald - Pelz Commodities

Columbia River Bar Pilots

Mid Columbia Producers, Inc.

Columbia River Launch Service, LLC

Millennium Bulk Terminals

Columbia River Pilots

Monarch Inspection Services

Crowley Maritime Corporation

National Cargo Bureau, Inc.

CVT Tanker Brokers & Associates, Inc.

North American Shipping Agencies, LLC

Degesch America, Inc.

Norton Lilly International

Durham & Bates Agencies, Inc.

Olympic Tug & Barge

EGT, LLC

Oregon Dept. of Environmental Quality

Executive Security Service, Inc.

Overseas Merchandising

Foss Maritime Company

Pacific International Maritime Medical Services

Fred Devine Diving & Salvage

Pacific Maritime Association

Fujitrans USA, Inc.

Pacific Ship Supply, Inc.

General Steamship Corporation, Ltd.

Port of Astoria

Geo. S. Bush & Co.

Port of Kalama

Great Western Malting Co.

Port of Longview

Haglund, Kelley, Horngren, Jones LLP

Port of Portland

ICTSI Oregon, Inc.

Port of Vancouver USA

Inchcape Shipping Services

Portland Lines Bureau

Interocean Steamship Corporation

Ports America

7

Merchants Exchange of Portland

Membership Reuters Limited San Pedro Harbor Ship Supply Sause Bros. Ocean Towing Schwabe, Williamson & Wyatt Seaport Marine Surveys

Welcome to our New Member!

Shaver Transportation Company Ship to Shore Water Taxi

West Coast Marine Cleaning

Southport Agencies, Inc. T. Parker Host, Inc. Talon Marine Services LLC Terra Hydr Inc. Tesoro Maritime Company Tidal Transport & Trading USA LTD Tidewater Barge Lines Toyota Tsusho America, Inc. TradeWest Brokerage Company Transmarine Navigation Corporation

The 2nd Annual Merchants Exchange Excellence Award was presented to:

Trans-Tec

Mr. Amer Badawi Columbia Grain Inc.

Transversal International Corporation United States Customs Service United Grain Corporation

at the Annual Meeting on February 22, 2017.

West Coast Marine Cleaning Western Bulk Chartering Seattle Western Overseas Corporation Wilhelmsen Ship Service, Inc. Williams Frederickson, LLC

2017 Annual Report

8

Progress Report Five-Year Strategic Planning On January 22, 2015, the Merchants Exchange held a Strategic Planning Workshop for members, Board of Directors, and staff. This workshop marked the end of a five-year strategic planning cycle, which started in February 2010, and the beginning of the next five-year cycle. The objectives of the workshop were to report on the status of the Merchants Exchange, including changes as a result of the recently completed planning cycle, report on actual action plan results and then look forward through a collaborative process amongst members, Board of Directors, and staff. Together through this process we set objectives for the new strategic planning cycle for 2015-2019 which exemplifies our commitment to our membership, education, and organizational stability.

First, overarching Growth Points for the Merchants Exchange Strategic Planning Cycle 2015-2019 were developed and include: Public Organizational Needs Development & Diversification Face (Internal/External) of Revenue Second, six Action Items were established all with equal weight, followed by the development of detailed action plans to achieve success.

2017 Action Plan Highlights Include: ▪▪

▪▪

▪▪

▪▪

▪▪

▪▪

Maritime Education Program- support the educational needs of members and community: Continued the further development of the Shipping Education Series and presented Shipping 101 and 201. A Certification Sub-Committee was assembled which identified the need and market space for accreditation opportunities from the Merchants Exchange Shipping Education Series.

Sustainability in Staffing & Succession Planning- support career development and plan for key staff positions: Completed the First 96 Hours Executive Exit Transition Guide and finalized the outline for the Executive Director Desk Manual.

Finance- financial sustainability and fiscal responsibility: Completed a review of the Accounting Financial Control Policies and Procedures by Rostad & English and implemented suggested controls.

Customer Needs- enhance member outreach and service offering: Developed and launched the Merchants Exchange Daily News Bulletin and new email-to-text services for the Communications Center. Identified vendors for the upcoming 2018 Customer Management Software upgrade.

Marketing- membership and community engagement: Completed a new logo and branding selection with roll-out expected in 2018. Identified the three parts of the website refresh project, also launching in 2018. Staff have taken over responsibility for the Social Media Plan and a draft is expected in early 2018.

Optimize the Board of Directors- enhance the Board experience and leverage members’ expertise: Completed in 2017. A Board Retreat is planned in 2Q 2018 to continue the strategic planning process into the next cycle.

Business Continuity & Disaster Recovery Plan In 2017, we continued our commitment to being prepared for disruptive emergency events. In 2017 we completed an update of our Business Continuity and Disaster recovery plan’s Incident Management Plan and Policies. This includes new guidelines for staff training. In 2018 we will be working on bringing all staff up to date on the new training requirements as well as updating each departments Functional area plans.

Based on the session results and report, the Business Continuity Plan administrator has formed a multi-department work group to carry out an action plan to make the updates and improvements highlighted by the exercise.

9

Merchants Exchange of Portland

Progress Report Maritime Education Program We were excited to see our commitment to providing industry education continue in 2017 with providing another Shipping 101: The Business of Shipping and the launch of Shipping 201: The Movement of a Ship.

Shipping 101: The Business of Shipping was held on April 5, 2017. The course consisted of a full-day of presentations on: Columbia River History; Columbia River Import & Export Facts & Commodities; Columbia River Infrastructure; Columbia River Ports & Terminals; Cargo Categories & Modes of Transportation; Vessel Types & Classifications; Merchants Exchange & Maritime Industry Trade Associations; Key Shipping Terms & Documents; Required Parties; Involved Parties & Potential Parties; Regulations, Regulators & Service Providers; Columbia River Treaty.

Shipping 201: The Movement of a Ship was held on May 25th, 2017. Shipping 201 focused on the movement of a ship, bringing in 13 speakers from our industry to present on the following: What Do Agents Do? What is a Pilot?

Regulators & Remedies; Columbia River Tug & Barge Activity; Maritime Law & Insurance.

Both seminars were held in the 200 Market building large conference room. In response to the success we will continue the education programs in 2018 with the launch of our Shipping 202: The Movement of Cargo .

Mark your calendars: Shipping 202: The Movement of Cargo – May 3, 2018 Shipping 201: The Movement of a Ship – September 18, 2018 (TENTATIVE DATE) Shipping 101: The Business of Shipping – October 30, 2018

Grant Administration Services In 2007, the Exchange was appointed as Fiduciary Agent for the DHS/FEMA Port Security Grant Program (PSGP) by the U. S. Coast Guard Sector Columbia River. The role of Fiduciary Agent afforded us the opportunity to work closely with many members as well as meet regional stakeholders. We’ve gained valuable experience in federal grant management and administration that has enabled the Exchange to offer a new service, which began in 2012.

Grant Management & Administrative Services: Staff has taken experience and training from administering the PSGP grants and offered services to our members to support their grant application and award administration needs. These funds support efforts to build and sustain core capabilities across the PSGP mission areas of Prevention, Protection, Mitigation, Response, and Recovery, with specific focus on addressing the security needs of the port area. In 2017, the Exchange was able to assist in the administration and close-out of three local PSGP grants, and secured $195,000 in Federal funds from the PSGP for the port area.

Merchants Exchange Staff River Tour 2017--Thank you Anchorage Launch Co!

2017 Annual Report

10

Communications Center The Merchants Exchange Communications Center The Exchange operates a Communications Center that is staffed at all times with fully-trained and knowledgeable personnel. We are available 24 hours a day, 365 days a year to answer questions, provide updates, arrange for services, assist our members with their jobs, and help visiting vessels in ensuring a trouble-free arrival and stay in port. In 2017 we began offering new email to text and text to e-mail notification services. If you are interested in receiving any of your notifications via text please contact the Communications Center at marine.room@pdxmex.com.

Marine Intelligence ▪▪

24/7 Operation - always available for our membership

▪▪

Tracking vessel movements between Astoria, OR and Portland, OR / Vancouver, WA

▪▪

Industry notification of ship arrivals, moves and departures

▪▪

Electronic filing of required documents with the USCG National Vessel Movement Center and U.S. Customs and Border Protection

▪▪

Coordinate filing of Ballast Water Reporting Forms for Oregon & Washington

▪▪

Monitoring & Response Coverage for Maritime Fire and Safety Association and Clean Rivers Cooperative

Communications ▪▪

Communication with vessels transiting the Lower Columbia and Willamette Rivers

▪▪

24/7 Monitoring of VHF Channels 18-A, 16 and 11

▪▪

Marine radio to phone patches (VHF)

▪▪

Notification to Government Agencies on vessel arrivals

▪▪

Resource to industry events

Answering Service ▪▪

Local to worldwide connectivity

▪▪

Maintain weekend duty lists for industry

▪▪

Emergency notifications

Reports ▪▪

Cargo statistics

▪▪

Vessel activity

▪▪

Specialized/customized

NEW!! The Merchants Exchange Daily News Bulletin

In 2017 we introduced a new publication, The Merchants Exchange Daily News Bulletin “The Daily”. The Daily is a convenient daily round-up of news relevant to the Columbia and Willamette River Shipping Industry. The bulletin was created in response to feedback members provided in our 2017 member needs assessment. The Daily is distributed via e-mail each weekday morning, it is a free service to our members and friends: you can subscribe here.

11

Merchants Exchange of Portland

Maritime Intelligence Merchants Exchange of Portland AIS Web Viewer & Reporting Merchants Exchange of Portland AIS Web Viewer & Reporting AIS Reports: available for members of the Merchants Exchange of Portland.

AIS Viewer Features:  Zone alerts on entry and/or exit  Alerts sent to email or phone  Track vessels real-time  View historical moves

Additional Features:  Check vessel ETA  Filter vessels by type  View vessel information  Additional user logins  Manage user logins

2017 Annual Report

12

Year-End Statistics Top 5 Vessel Agents (vessel calls) Transmarine Navigation General Steamship Inchcape Shipping Service Wilhelmsen Transversal Shipping

2016 2017 2016 Rank 345 178 149 126 88

367 182 116 111 85

1 2 3 4 8

2017 2016

400 300 200

100 0

Top 5 Cargos (vessel calls) Grain Autos Petrol Barge Soda Ash Logs

2016 2017 2016 Rank 520 176 142 106 95

550 198 139 95 105

1 2 3 5 4

2017 2016

600 500 400 300

200 100 0

Grain Terminals (vessel calls) EGT, LLC KALAMA EXPORT UNITED GRAIN CORP TEMCO, LLC (KALAMA) COLUMBIA EXPORT TERMINAL TEMCO IRVING (PORTLAND) LD COMMODITIES

2016 2017 2016 Rank 121 111 94 80 72 34 12

118 111 103 105 84 22 6

1 2 4 3 5 6 7

Grain

Autos

125 100

Petrol Barge

Soda Ash

Logs

2017 2016

75 50 25 0

2017

13

Merchants Exchange of Portland

Year-End Statistics Top 5 Ship Types (vessel calls) BULK CARRIER BARGE VEHICLE CARRIER TANKER GENERAL CARGO

2016 2017 2016 Rank 974 1002 181 174 171 198 81 78 51 74

2017 2016

1250

1000

1 3 2 4 5

750 500

250 0

Average Stay in Port (days) Inactive/Repair Bulk Carrier General Cargo Barges Tanker Vehicle Carrier Passenger/Cruise

2017 2016 18 9 3 3 2 1 0

BULK CARRIER

BARGE

VEHICLE CARRIER

TANKER

GENERAL CARGO

2017 2016

20

19 7 4 3 2 2 0

18 16 14 12 10 8 6 4 2 0

Vessel Calls by Port Portland, OR Longview, WA Vancouver, WA Kalama, WA Astoria, OR St. Helens, OR Rainier, OR Anchor Only

2016 2017 2016 Rank 685 302 266 201 44 22 8 6

678 298 307 239 30 10 10 14

1 3 2 4 5 8 7 6

2017 2016

700 600

500 400 300 200 100 0

2017 Annual Report

14

Commodity (vessel calls)

Grain Autos Petrol Barge Soda Ash Logs Potash Steel Products Chemicals Other Petcoke Inactive/Repair Limestone (Barge) Metals & Ores Caustic Soda Petrol Tanker Cement Research/Cable Lumber & Wood Products Bentonite Clay Gypsum Salt Windmills/Project Alumina Ammonia

520 33.9% 176 11.5% 142 9.3% 106 6.9% 95 6.2% 87 5.7% 53 3.5% 49 3.2% 49 3.2% 39 2.5% 32 2.1% 32 2.1% 28 1.8% 22 1.4% 21 1.4% 19 1.2% 16 1.0% 14 0.9% 12 0.8% 8 0.5% 6 0.4% 6 0.4% 1 0.1% 1 0.1%

2017

15 33.9% Grain

11.5% Autos

9.3% Petrol Barge

6.9% Soda Ash

Vessel Calls by Cargo Type 2017

6.2% Logs

5.7% Potash

Year-End Statistics

Merchants Exchange of Portland

Grain Vessels vs Grain Exported 2003 - 2017

Year-End Statistics

560 527 511

510

496

464

455

484 451

450

438

434

428

415

29,395,589

24,896,911 23,062,344 20,241,720

20,168,913

18,708,732 16,941,998

19,895,119

20,929,985

20,082,818

17,105,943

16,389,397 15,084,983

13,281,687

2003

2003

Year M.T.* Arrivals

2004

2005

2004

2003 13,281,687 455

2006

2005

2004 16,941,998 511

2007

2006

2005 16,389,397 464

2007

2006 15,084,983 438

2008

2009

2010

2011

2012

2008

2009

2010

2011

2012

2007 18,708,732 510

2008 20,241,720 527

2009 17,105,943 450

2010 20,168,913 496

2011 19,895,119 415

2013

2014

2013

2012 20,929,985 451

2015

2014

2013 20,082,818 428

2016

2015

2014 24,896,911 484

2016

2015 23,062,344 434

2016 29,395,589 560

* Metric Tons data are total grain loaded at elevators (data from MEX Grain Report)

700

Auto

Containers Logs

600

Other Petrol

Salt 500

400 Vessel Count

Columbia River Vessel Calls by Cargo Type 1999 - 2017

Grain

300

200

100

0 1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2017 Annual Report

2009

2010

2011

2012

2013

2014

2015

2016

2017

16

Associations Association Management for Not-For-Profit Maritime Industry Associations The Merchants Exchange has been heavily involved in Association Management for over 90 years. Today, we manage multiple organizations that are involved in maritime and/or international trade related issues. The Merchants Exchange is experienced in all management services from planning informal meetings to hosting and conducting national and international association conventions held in the Portland area. Primary services offered include: full-service accounting, administration, and event planning.

Specialized Accounting Services ▪▪ ▪▪ ▪▪

Comprehensive accounting services Budget preparation General ledger & financial statement preparation

Grants Administration ▪▪

Grants Administration

Administrative Services ▪▪ ▪▪ ▪▪

Specially designed services, ranging from a la carte to comprehensive administrative and program services Manage Board and Committee meetings and all correspondence Management of historical documents

Publications ▪▪ ▪▪ ▪▪ ▪▪

Brochures & Flyers Annual / Monthly / Special Reports Industry Newsletters Industry Directories

Event Planning ▪▪ ▪▪

Event service providers On-site Coordination

C U R R E N T A S S O C I AT I O N S : Clean Rivers Cooperative, Inc. Columbia River Customs Brokers & Forwarders Association, Inc. Columbia River Shippers Association Columbia River Steamship Operators’ Association, Inc. Lower Columbia Region Harbor Safety Committee Maritime Commerce Club, Columbia River Maritime Fire & Safety Association Merchants Exchange Scholarship Fund Pacific Northwest Grain & Feed Association, Inc. Working Waterfront Coalition 17

Merchants Exchange of Portland

Associations Clean Rivers Cooperative, Inc. (CRC) Association President: Doug Lenz Columbia Pacific Bio Refinery www.cleanriverscooperative.com Assistant Manager: Carl Boelter Administrative Coordinator: Curtis Cannizzaro Clean Rivers Cooperative is an oil spill response organization comprised of 23 member companies with facilities located along the Columbia and Willamette Rivers (located in both Oregon and Washington). CRC provides spill response equipment and services for its members and their facility response plans. It is also the primary Spill Response Contractor to the Maritime Fire & Safety Association Vessel Response Plan for vessels transiting the Columbia and Willamette Rivers.

Columbia River Customs Brokers & Forwarders Association, Inc. (CRCBFA) Association President: Chuck Willis Seko Logistics www.crcbfa.org Association Administrator: Margerie (Sedam) Vis This association was organized in 1977 to further the business and interests of the customs brokers and/or foreign freight forwarders within our area. This association is very active in providing its membership with classes, seminars on procedural updates, speeches and forums on the current demands of the shipping community.

Additionally, the association maintains a forum for open dialog with various governmental agencies and for solving local problems at a local level. CRCB&FA currently has 28 full members (voting members that are employed in the business), 22 associate members (non-voting members that are involved in businesses relating to the brokerage business), and seven individual members.

2017 Annual Report

18

Associations Columbia River Shippers Association (CRSA) Association President: Corby Braunger Richardson Sports www.crsa-oregon.tripod.com Account Representative: Sue Blomgren Association Administrator: Rachel Perry/Margerie (Sedam) Vis Independent Administrator: Liz Wainwright The CRSA was established in 1988. Its mission, through the combined commercial strength and influence of its members, is to maintain and improve steamship service to Portland and to ensure stable shipping rates for importing containerized cargo into the region. Services specific to this association include: ▪▪

Negotiation of annual service contracts with three steamship lines

▪▪

New shipping rates negotiated and contracts amended throughout the year

▪▪

Members receive individual weekly tracking reports on all booked shipments and Member assistance with steamship line service issues.

Columbia River Steamship Operators’ Association, Inc. (CRSOA) Association Board Chair: John Coyle Blue Water Shipping www.crsoa.net Association Executive Director: Kate Mickelson Association Director of Member Services: Hannah Milnes Association Accounting Administrator: Chann Noun CRSOA was established in 1922. Its area of influence includes the ports and waterways serving Oregon, southern Washington, and Idaho. CRSOA consists of members representing ship owners, operators, agents, towing, bunkering and launch service along the Oregon Coast and Columbia/Willamette River Systems. The goal of the CRSOA is to facilitate trade, provide business leadership, exercise principles of environmental stewardship, serve as an industry focal point, and promote operating policies and practices that are safe, reliable, efficient, and cost-effective.

19

Merchants Exchange of Portland

Associations Lower Columbia Region Harbor Safety Committee (LCRHSC) Association Chair: Cale Karrick Transmarine Navigation www.lcrhsc.org Association Administrator: Bekah Canfield The Lower Columbia Region Harbor Safety Committee (LCRHSC) is an open forum comprised of public and private stakeholders in Oregon and SW Washington with vital interests in assuring safe navigation to protect the environment, property and personnel on the waterways within the Lower Columbia Region. The Lower Columbia Region encompasses the Columbia River and its navigable tributaries from the seaward approaches to the Columbia River Bar to Bonneville Dam. The LCRHSC provides an inclusive, cooperative and equitable venue for addressing waterways issues to ensure the continuation and improvement of prudent management practices for our local waterways. Throughout the process, the LCRHSC strives to ensure reliable and efficient marine transportation.

Maritime Commerce Club, Columbia River (MCC) Association President: Melissa Wirthlin Vigor Industrial www.pdxmex.com/mcc Association Director: Margerie (Sedam) Vis Association Administrator: Rachel Perry The Maritime Commerce Club, Columbia River (MCC) was created to further the interests of individuals and businesses involved in maritime trade along the Columbia and Willamette River Systems. The club provides opportunities for social networking, keeps members informed of the events shaping the maritime industry, and participates in philanthropic endeavors that strengthen our community.

Created from the merger of the Portland Shipping Club and the Propeller Club, Port of the Columbia River, the Maritime Commerce Club brings together members possessing a wealth of industry knowledge and history with individuals who have the vision to keep the maritime industry moving into the future. The club will continue to sponsor events that honor those who have been invaluable to the maritime community; bring awareness to issues shaping our industry; celebrate the impact our industry has had in developing our region; and give back to our community we live in.

2017 Annual Report

20

Associations

Maritime Fire & Safety Association (MFSA) Association President: Andrew Holbrook Kinder Morgan Energy Partners www.mfsa.com Executive Director: Liz Wainwright Oil Spill Contingency Program Manager: Holly Robinson Administrative & FPAAC Program Manager: Curtis Cannizzaro

MARITIME FIRE & SAFETY ASSOCIATION

Established in 1983 in the aftermath of the 1982 M/V Protector Alpha fire, the MFSA supports shipboard fire training and equipment for land-based firefighters from thirteen agencies in Oregon and Washington. In 1991, oil spill response and prevention was added to the mission of MFSA. This association coordinates shipboard fire and spill response needs between two states, fourteen cities and seven port districts along 110 miles of shipping channels. The MFSA has become a national model; the Revised Mutual Aid Agreements, signed by all participating fire agencies, enable fire agencies to assist each other in the event of a shipboard fire on the lower Columbia and Willamette Rivers while the MFSA Vessel Response Plan provides oil spill contingency planning coverage to approximately 1650 ships and barges each year.

www.pdxmex.com/scholarship

ants Excha ch ng er

Sc

Association Director: Margerie (Sedam) Vis Association Administrator: Rachel Perry

e

Association President: David Boyajian Schwabe, Williamson & Wyatt

M

Merchants Exchange Scholarship Fund (MEX SF)

ho

la r s h i p F u n

d

In December 2003, the Merchants Exchange established a new entity, The Merchants Exchange Scholarship Fund, which is the successor to the Women’s Shipping Club Scholarship Fund, established in 1981. Their goals were to provide scholarships to individuals who had made a commitment to work in the marine transportation industry and international trade. We continue the work of this fund. The scholarships are awarded to those who have demonstrated academic ability and personal qualities that will permit them to benefit from higher education.

The scholarships are awarded to students seeking careers in Maritime Affairs and/or International Trade.

21

Merchants Exchange of Portland

Associations Pacific Northwest Grain & Feed Association (PNWGFA) Association President: Jason Middleton United Grain Corporation www.pnwgfa.com Association Director: Margerie (Sedam) Vis Pacific Northwest Grain & Feed Association is a non-profit organization which serves and promotes the needs of firms involved in processing, handling, and merchandising of grain, feed, seed and other agricultural commodities within the four-state region of ID, MT, OR, and WA. Members currently consist of the local grain companies and exporters, the many cooperatives and elevators up river and eastward, as well as the vendors who serve these companies (contractors, engineers, suppliers, fumigators, insurance brokers, etc.).

Information services include: an annual industry directory, a bi-weekly NewsBulletin, and annual social and educational industry events, including the Warehousemen’s Pesticide Conference & Trade Show, the Southern Idaho Pesticide Conference, the Country Elevator Council meeting, the Idaho Trout Fry, and the Annual Convention.

Working Waterfront Coalition (WWC) Association President: Rob Mathers Kinder Morgan Energy Partners www.workingwaterfrontportland.org Association Executive Director: Ellen Wax Association Administrator: Bekah Canfield Established in 2005, the Working Waterfront Coalition (WWC) is an organization of businesses concerned about the environmental health and economic vitality of the Portland harbor. The WWC advocates for sound public policy that promotes environmental, social and economic sustainability.

Portland’s Harbor is a vital employment area; home to thousands of valuable high-wage, high-benefit jobs.

The WWC, with its extensive knowledge of harbor industry needs, active industry participation and record of effective advocacy, is dedicated to working with its partners to ensure an appropriate balance between environmental concerns and the needs of river related employers. The coalition’s activities include: ▪▪

Advocating with local, state and federal officials and agencies on behalf of marine-dependent and riverrelated businesses.

▪▪

Working to broaden community understanding of: the importance of the Portland Harbor as one of the most impactful employment areas in the region, and the harbor industries’ dependence on a limited land supply suitable for business needs.

▪▪

Providing up-to-date information and advice to coalition members regarding developments in the public policy and regulatory arena.

2017 Annual Report

22

200 SW Market Street, Suite 190 Portland, Oregon 97201 24-Hour Communications Center - (503) 228-4361