2016 Merchants Exchange Annual Report

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 2016 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 2016.

2016 was a very busy year at the Merchants Exchange! Some highlights of our year include: ▪▪

Finalized the Action Initiatives identified in the 2015-2019 Strategic Action Planning process

▪▪

Collaborated with the Lower Columbia Region Harbor Safety Committee as a pivotal partner in bringing the National Harbor Safety Committee Conference to Portland, September 2016

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Launched Shipping 201 – a continuation of the Maritime Education Program, in November 2016

We are very proud of the educational outreach programming initiative identified in the 2010 – 2014 strategic planning cycle and launched in 2015 as one of the six Action Initiatives of the 2015-2019 Strategic Plan. We are committed to growing educational programs to meet the needs of our members and regional stakeholders. The success of our Shipping Education Series and development of a Maritime Education Outreach Program affirms the commitment of the Merchants Exchange to strengthening our educational offerings to the industry.

Included in this Annual Report, beginning on page 23, is the 2016 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 2017. Thank you for your ongoing support!

Liz Wainwright Executive Director Merchants Exchange of Portland

All photo credits (cover and interior) to Jim Horne, Columbia River Pilots unless otherwise noted.

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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

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 Emily Bamford________________________(503) 220-2098_____________________ bamford@pdxmex.com Elizabeth Wainwright __________________(503) 220-2091_____________________ wainwright@pdxmex.com Ernie Quesada_________________________(503) 220-2087_____________________ quesada@pdxmex.com Holly Robinson________________________(503) 220-2099_____________________ robinson@pdxmex.com Jim Harrison__________________________(503) 220-2094_____________________ harrison@pdxmex.com John Cordasco ________________________(503) 228-4361_____________________ cordasco@pdxmex.com Katrina Dahlke________________________(503) 220-2095_____________________ dahlke@pdxmex.com Margerie Sedam_______________________(503) 220-2093_____________________ sedam@pdxmex.com Rachel Perry___________________________(503) 220-2092_____________________ perry@pdxmex.com Rindy Primeau________________________(503) 228-4361_____________________ primeau@pdxmex.com Robin Wright__________________________(503) 220-2088_____________________ wright@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

2016 Annual Report

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Heritage of Service - Celebrating 137 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 and 2016 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

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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 Specialist Lead: John Cordasco Communications Specialists: Rindy Primeau, Thomas Semrau, Samantha Steerman Communications & Computer Systems Administrator: Jim Harrison Communications & Administrative Services Assistant: Emily Bamford Executive Administrator: Bekah Canfield

Association Management Clean Rivers Cooperative

Maritime Commerce Club

Ernie Quesada, General Manager 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, Association Administrator

Margerie Sedam, Association Director Rachel Perry, Association Administrator

Columbia River Shippers Association

Maritime Fire & Safety Association

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

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

Columbia River Steamship Operators Association

Pacific Northwest Grain & Feed Association Margerie Sedam, Association Director

Chann Noun, Association Accounting Administrator

Lower Columbia Region Harbor Safety Committee Bekah Canfield, Association Administrator

Working Waterfront Coalition Ellen Wax, Executive Director Bekah Canfield, Association Administrator

2016 Annual Report

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2016 Board of Directors Term expires (listed in parenthesis) in February of the given year Garrett Costello (19) President Columbia Grain, Inc. 1300 SW Fifth Ave., 29th Floor Portland, OR 97201 (503) 535-5617 gcostello@columbiagrain.com

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

Mike Morgan (17) Treasurer Columbia Export Terminal, LLC 15660 North Lombard Street Portland, Oregon 97203 (503) 978-2544 mike.morgan@t5-cet.com

Mark Jensen (18) Secretary TEMCO 800 N. River Street Portland, OR 97227 (651) 355-3669 mark.jensen@chsinc.com

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

Carl Bertapelle (17) Talon Marine Services, LLC 2303 N Randolph Ave., Suite 4 Portland, OR 97227 (503) 679-6166 carl@talonships.com

Sebastian Degens (17) Port of Portland P.O. Box 3529 Portland, OR 97208 (503) 415-6214 sebastian.degens@portofportland.com

Frank Burg (ex officio) President, Clean Rivers Cooperative Owens Corning 11910 N.W. St. Helens Road Portland, OR 97213 (503) 273-1465 frank.burg@owenscorning.com

Randy Click (19) ACGI Shipping Inc. 801 C Street, Suite 200 Vancouver, WA 98660 360-735-9083; fax rclick@acgishipping.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

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Richard Vincent (ex officio) President, Maritime Fire & Safety Association Port of Portland P.O. Box 3529 Portland, OR 97208 (503) 415-6236 richard.vincent@portofportland.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

2017 Board of Directors Nominees Agent Position: Carl Bertapelle, Talon Marine Port Position: Todd Krout, Port of Vancouver USA Terminal Position: Mike Morgan, Columbia Export Terminals

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 2015 Annual Meeting, staff reported on the process of the 2010-2014 Strategic Plan, and the process began for the 2015-2019 Strategic Plan cycle. Details on the 2015-2019 strategic plan can be found on page 9 of the Annual Report.

2016 Annual Report

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Membership ACGI Shipping Company, Inc.

Inchcape Shipping Services

Advanced American Constructions, Inc.

Interocean Steamship Corporation

Alexander Gow, Inc.

Jones Stevedoring Company

Anchorage Launch Service

JR Simplot

Blue Water Shipping, Inc.

JT Marine Inc.

BST Associates

Kalama Export Company

Columbia River Steamship Operators’ Association

Kinder Morgan Bulk Terminals

Cascade General / Vigor Industrial

Kinder Morgan Energy

Cascade Marine Agencies

Kirby Offshore Marine LLC

CHS Inc / Temco LLC

K-Line America

Columbia Export Terminal

Lindsay Hart, LLP

Columbia Grain, Inc.

Louis Dreyfus Company

Columbia Metal Works, Inc.

McCall Oil

Columbia River Bar Pilots

McDonald - Pelz Commodities

Columbia River Launch Service, LLC

Mid Columbia Producers, Inc.

Columbia River Pilots

Millennium Bulk Terminals

Crowley Maritime Corporation

Monarch Inspection Services

CVT Tanker Brokers & Associates, Inc.

National Cargo Bureau, Inc.

Degesch America, Inc.

North American Shipping Agencies, LLC

Durham & Bates Agencies, Inc.

Norton Lilly International

EGT, LLC

Olympic Tug & Barge

Executive Security Service, Inc.

Oregon Dept. of Environmental Quality

Foss Maritime Company

Overseas Merchandising

Fred Devine Diving & Salvage

Pacific International Maritime Medical Services

Fujitrans USA, Inc.

Pacific Maritime Association

General Steamship Corporation, Ltd.

Pacific Ship Supply, Inc.

Geo. S. Bush & Co.

Port of Astoria

Great Western Malting Co.

Port of Kalama

Haglund, Kelley, Horngren, Jones LLP

Port of Longview

ICTSI Oregon, Inc.

Port of Portland

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Merchants Exchange of Portland

Membership Port of Vancouver USA Portland Lines Bureau Ports America Reuters Limited San Pedro Harbor Ship Supply

Welcome to our New Members!

Sause Bros. Ocean Towing Schwabe, Williamson & Wyatt

Columbia Export Terminal 15660 N. Lombard St. Portland, OR 97203

Seaport Marine Surveys Shaver Transportation Company Ship to Shore Water Taxi

Western Bulk Chartering Seattle 1001 4th Ave., Suite 4105 Seattle, WA 98154

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 Trans-Tec Transversal International Corporation United States Customs Service United Grain Corporation Western Bulk Chartering Seattle Western Overseas Corporation Wilhelmsen Ship Service, Inc. Williams Frederickson, LLC

2016 Annual Report

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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.

2016 Action Plan Highlights Include: ▪▪

▪▪

▪▪

▪▪

▪▪

▪▪

Maritime Education Program- support the educational needs of members and community: Presented Shipping 101 to great success and launched Shipping 201. Development of further modules, including Shipping 202 (2017 launch) continues.

Sustainability in Staffing & Succession Planning- support career development and plan for key staff positions: Completed organizational needs assessment and succession planning recommendations. Reported to Board. Contracted for annual pay and compensation study.

Finance- financial sustainability and fiscal responsibility: Issued Financial Plan Guidance Document to provide historical perspective and serve as a resource to staff and board for financial management. Evaluated service fees during 2016 and adjusted for 2017.

Customer Needs- enhance member outreach and service offering: Outlined customer needs plan. Redesigned newsletter, created member feature section and launched new publication platform, frequency and distribution model. Realized increased circulation and readership. Continued customer outreach with focus on Communication Center users.

Marketing- membership and community engagement: Identified consultant with deep familiarity with the local maritime industry to support a thorough review of internal and external communications and to help establish priorities for tasks such as updating and improving the website, developing an overall media strategy, and creating a unified approach to all communications.

Optimize the Board of Directors- enhance the Board experience and leverage members’ expertise: Gathered information regarding board make up and processes from other related associations, as well as surveying current and past board members and officers. Once finalized research phase, staff will provide recommendations to the Executive Director for presentation to the Executive and Management committee.

Business Continuity & Disaster Recovery Plan In 2016, we continued our commitment to being prepared for disruptive emergency events. We conducted a Multi-Agency Business Continuity & Disaster Recovery Communications Exercise; staff completed an after-action report, and started carrying out an action plan based on after-action recommendations from the exercise.

Thanks to a Port Security Grant awarded in 2014, the Merchants Exchange retained the services of Ronin Security Solutions.

We planned a multi-agency emergency communications exercise with participation from the following members: Columbia River Pilots, Columbia River Bar Pilots, General Steamship, Port of Vancouver USA, and U.S. Coast Guard Sector Columbia River. The exercise was successfully carried out March 10, 2016. An after-action session was held on April 28, 2016 and included members from the U. S. Coast Guard Sector Columbia River, United States Army Corps of Engineers, Schwabe

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Merchants Exchange of Portland

Progress Report Williamson and Wyatt, Port of Vancouver, Louis Dreyfus Company, Interocean Steamship Corporation, Columbia Export Terminals, Columbia River Pilots, Columbia River Bar Pilots, Foss Maritime Company and the Maritime Fire and Safety Association.

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

Maritime Education Program We are excited to see our commitment to providing industry education come to fruition in 2016 through Shipping 101: The Business of Shipping and the launch of Shipping 201: The Movement of a Ship.

Shipping 101 was held on March 30, 2016. The course consisted of a full-day of presentations on: Columbia River History; Import and Export Facts & Commodities; River Infrastructure; Columbia River Ports & Terminals; Columbia River Treaty; Vessel Types & Classifications; Cargo Types; Key Shipping Terms & Documents; Required Parties; Potential Service Providers; Regulators, Regulation & Oversight; Safety, Environment & Security, and Industry Associations.

Shipping 201 launched on November 3, 2016. The course was well attended, with 17 members and 2 non-members.

Shipping 201 focused on the movement of a ship, bringing in 15 speakers from the maritime industry to present on: What does an Agent Do?; What is a Pilot?; Regulators & Remedies; Ship, Ocean-Going Barges & Tugs, Oh My!; Columbia River Tug & Barge Activity; and Maritime Insurance & Law. Additionally, participants from both seminars received the presentation in digital and print, supplemental resource materials and received a certificate of achievement. In response to the success, we will continue the education programs in 2017 with the launch of Shipping 202: The Movement of Cargo.

Mark your calendars: Shipping 101: The Business of a Ship – April 5, 2017 Shipping 201: The Movement of a Ship – May 25, 2017 Shipping 202: The Movement of Cargo – November 2, 2017

Grant Administration Services In 2007, the Exchange was appointed as the 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.

Staff has taken the experience learned from PSGP grant administration and beginning in 2012 offered services to our members to support their grant application and award administration needs. In 2016 the Exchange secured $500,000 in Federal grant funds from the PSGP for the port area. 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.

Grant Awards In 2014, the Exchange was successful with its application to the DHS-FEMA for three (3) PSGP funded projects. The funding enabled the Exchange to accelerate identified needs which previously had no or minimal funding resource. All projects were successfully implemented in 2015, and were completed on time in August 2016.

Project

Total

Federal Contribution

Local Match Contribution

Exercise of Business Continuity and Disaster Recovery Plan

$50,000

$37,500

$12,500

Cyber Security Vulnerability Assessment & Mitigation

$35,000

$26,250

$8,750

Port-Wide Risk Mitigation & Trade Resumption/Resiliency Plan Update

$190,000

$180,000

$10,000 (In-Kind, Partial Cost-Share Waiver Received)

2016 Annual Report

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Communications Center

The Merchants Exchange Communications Center is the maritime information center for the Lower Columbia and Willamette Rivers.

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 responsibilities, and help visiting vessels in ensuring a trouble-free arrival and stay in port.

Marine Intelligence ▪▪

24/7 Operation - always available for our membership

▪▪

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

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Industry notification of ship arrivals, moves and departures

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

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Coordinate filing of Ballast Water Reporting Forms for Oregon & Washington

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

Communications ▪▪

Communication with vessels transiting the Lower Columbia and Willamette Rivers

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

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Marine radio to phone patches (VHF)

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Notification to Government Agencies on vessel arrivals

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Resource to industry events

Answering Service ▪▪

Local to worldwide connectivity

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Maintain weekend duty lists for industry

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Emergency notifications

Reports

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Cargo statistics

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Vessel activity

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Specialized/customized

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

2016 Annual Report

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Year-End Statistics

2015 2015 Top 5 Vessel Agents2016 (vessel calls) Rank 2016 2015 Rank el Agents (vessel calls) 2015 1 Transmarine Navigation 1 367 295 e Navigation 367 295 2 General Steamship 182 160 2 amship 182 160 4 Inchcape Shipping Service 4 116 117 hipping Service 116 117 3 Wilhelmsen 111 146 3 111 146 8 65 8 102 acific Bluewater Pacific 102 65

2016 2015

2015 2015 2016 2015 Rank Top 5 Cargos (vessel calls) os (vessel calls) 2016 2015 Rank 550 424 1 Grain 1 198 191 550 424 2 Autos 2 139 156 3 198 191 Petrol Barge 4 3 105 106 Logs e 139 156 5 Soda Ash 72 4 95 105 106 5 95 72

Grain

Grain

Autos

Autos

Petrol Barge

Petrol Barge

Logs

2015 Grain Terminals (vessel calls) 2016 2015 Rank 2015 EGT, LLC 118 78 4 inals (vessel calls) 2016 2015 Rank Kalama Export 111 110 1 118 78 4 105 Temco (Kalama) 89 3 ort 111 110 1 United Grain Corp 103 100 2 ama) 105 89 3 84 Columbia Export 49 5 n Corp Temco (Portland) 103 100 2 22 25 6 xport 84 49 5 LD Commodities 6 14 7 land) 22 25 6 dities 6 14 7

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Merchants Exchange of Portland

Logs

Soda Ash

Soda Ash

2016 2015

Year-End Statistics

2015 2015 Rank Top 5 Ship Types (vessel calls) 2016 2015 ssel Agents (vessel calls) 2016 2015 Rank Bulk Carrier 1 11002 887 ne Navigation 367 295 Vehicle Carrier 198 192 3 2 teamship 182 160 Barge 174 195 2 4 Shipping Service 116 117 Tanker 78 81 4 3 n 111 146 General Cargo 74 73 5 8 Pacific 102 65

201 201

2016 2015

Bulk Carrier Vehicle Carrier

Barge

Tanker

General Cargo

2015 Vessel Calls by Port 2016 2015 Rank Portland, OR 678 641 1 Vancouver, WA 307 311 2 Longview, WA 298 252 3 Kalama, WA 239 215 4 2015 30 Astoria, OR 33 5 gos (vessel calls) 2016 2015 Rank 14 Anchor Only 6 9 1 10 550 424 Rainier, OR 12 6 2 5 198 191 7 St. Helens, OR 6 3 ge 139 156 8 Clatskanie, OR 5 0 4 105 106 5 95 72

Cargo 2016 Average Stay in Port Days Inactive/Repair 38 Cement 17 Grain 2015 9 Limestone minals (vessel calls) 2016 2015 Rank 9 Other 9 118 78 4 Bentonite Clay 8 xport 111 110 1 Logs 8 alama) Research/Cable 105 89 3 8 ain CorpMetals & Ores 103 100 2 7 Export Potash 84 49 5 7 ortland) Petcoke 22 25 6 6 odities Steel Products 6 14 7 6 Soda Ash 5 Chemicals 4 Lumber & Wood Products 4 Salt 4 Windmills/Project 4 Caustic Soda 2 Containers 2 Gypsum 2 Petroleum 2 Auto 1

Grain

Autos

Petrol Barge

Windmills/Project 4 Lumber & Wood Products 4

Logs

Caustic Soda 2

Soda Ash Containers 2

Gypsum 2

Petroleum 2 Auto 1

Salt 4

Chemicals 4

Inactive/Repair 38

Soda Ash 5 Steel Products 6

Petcoke 6

Potash 7 Cement 17

Metals & Ores 7 Research/Cable 8

Grain 9 Logs 8

2016 Annual Report

Bentonite Clay 8

Other 9

Limestone 9

14

Vessel Calls by Cargo Type 2016

Year-End Statistics

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Merchants Exchange of Portland

Grain Vessels v.s. Amounts Exported Grain Vessels v.s. Amounts Exported

Hundreds Hundreds

Grain Vessels vs Amounts Exported 2003 - 2016

Year-End Statistics 560

560

527 511

510

511

527

496

510

455

450

438

484

451

450

438

464

455

484

496

464

451

415

434

428

434

428

415

29,395,589

29,395,589 24,896,911

24,896,911 20,241,720 18,708,732 16,941,998

13,281,687

16,941,998

16,389,397 15,084,983

20,241,720

18,708,732

20,168,913

20,168,913

17,105,943

19,895,119

19,895,119

20,929,985

20,929,985

Arrivals M.T.* Arrivals

M.T.*

23,062,344

23,062,344

20,082,818

20,082,818

17,105,943

16,389,397 15,084,983

13,281,687

2003 2003

2004 2004

2003 2003

2004 2004

2005 2005

2005 2005

2006 2006

2007 2007

2006 2006

2007 2007

2008 2008

2008 2008

2009 2009

2009 2009

2010 2010

Year

2010 2010

2011 2011

2012 2012

2011 2011

2013 2013

2012 2012

2013 2013

2014 2014

2015 2015

2014 2014

2016 2016

2015 2015

2016 2016

Year Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 M.T.* 13,281,687 16,941,998 16,389,397 15,084,983 18,708,732 20,241,720 17,105,943 20,168,913 19,895,119 20,929,985 20,082,818 24,896,911 23,062,344 29,395,589 Arrivals 455 511 464 438 510 527 450 496 415 451 428 484 434 560 Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 M.T.* 13,281,687 16,941,998 16,389,397 15,084,983 18,708,732 20,241,720 17,105,943 20,168,913 19,895,119 20,929,985 20,082,818 24,896,911 23,062,344 29,395,589 * Metric Tons data are total grain loaded at elevators (data from MEX Grain Report) Arrivals 455 511 464 438 510 527 450 496 415 451 428 484 434 560

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

Auto Containers Grain Logs

600

Other Petrol Salt

500

400 Vessel Count

Columbia River Vessel Calls by Cargo Type 1999 - 2016

700

300

200

100

0 1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2016 Annual Report

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2010

2011

2012

2013

2014

2015

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Associations Association Management for Not-For-Profit Maritime Industry Associations The Merchants Exchange has been heavily involved in Association Management for over 80 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: Frank Burg Owens Corning Sales 11910 NW St. Helens Road Portland, OR 97231 (503) 273-1465 frank.burg@owenscorning.com General Manager: Ernie Quesada 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. (CRCB&FA) Association President: Chuck Willis Seko Logistics 17949 NE Sandy Blvd Portland, OR 97230 (503) 255-8935 Chuck.Willis@sekologistics.com Association Administrator: Margerie Sedam 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 27 full members (voting members that are employed in the business), 21 associate members (non-voting members that are involved in businesses relating to the brokerage business), and seven individual members.

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Associations Columbia River Shippers Association (CRSA) Association President: Teresa Feliu Dolan Designs 2730 NW Front Avenue Portland, OR 97210 (503) 220-0799 tfeliu@dolandesigns.com Account Representative: Sue Blomgren Association Administrator: Rachel Perry 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

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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 Executive Director: Kate Mickelson 200 SW Market Street, Suite 190 Portland, OR 97201 (503) 234-8551 kate@crsoa.net 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.

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Merchants Exchange of Portland

Associations Lower Columbia Region Harbor Safety Committee (LCRHSC) Association Chair: Fred Myer Port of Portland 200 SW Market Street, Suite 190 Portland, OR 97201 lcrhsc@pdxmex.com 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.

At the National Harbor Safety Committee Conference, held in Portland in September 2016, Admiral Zukunft— Commandant of the United States Coast Guard, honored the Lower Columbia Region Harbor Safety Committee with the Harbor Safety Committee of the Year Award!

Maritime Commerce Club, Columbia River (MCC) Association President: Ken Anderson Shaver Transportation Co. 4900 NW Front Ave Portland, OR 97210 (503) 228-8850 kena@shavertransportation.com Association Director: Margerie Sedam 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.

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Associations Maritime Fire & Safety Association (MFSA) Association President: Richard Vincent Port of Portland 7200 NE Airport Way Portland, OR 97218 (503) 240-2236 richard.vincent@portofportland.com Executive Director: Liz Wainwright MFSA Administrative & FPAAC Program Manager: Curtis Cannizzaro Oil Spill Contingency Program Manager: Holly Robinson

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.

Merchants Exchange Scholarship Fund (MEX SF) M

ants Excha ch ng er

Sc

e

Association President: David Boyajian Schwabe, Williamson & Wyatt 1211 SW Fifth Avenue, Suite 1900 Portland, OR 97204 (503) 796-2943 dboyajian@schwabe.com

ho

la r s h i p F u n

d

Association Director: Margerie Sedam Association Administrator: Rachel Perry 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.

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Merchants Exchange of Portland

Associations Pacific Northwest Grain & Feed Association (PNWGFA) Association President: Tyler Musgrave EGT LLC 101 SW Main Street Portland, OR 97204 (503) 425-8360 tyler.musgrave@egt-llc.com Association Director: Margerie Sedam 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, and the Annual Convention.

Working Waterfront Coalition Association Executive Director: Ellen Wax 200 SW Market Street, Suite 190 Portland, OR 97201 (503) 234-8551 ellen.wax@workingwaterfrontportland.com 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.

2016 Annual Report

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