Capdiamont’s Weblog

John Frederick/ For the Times-Standard
Article Launched: 07/09/2008 09:31:09 AM PDT

The mandate by the State of California in creating the Harbor District was for harbor improvements, recreation and conservation duties.

Check out the California Harbors and Navigation Code, Section 4061. The “board” referred to is the county Board of Supervisors:

“If the commission, after a careful survey, investigation and examination, finds and reports to the board that the improvement, development or protection of the harbor is not practicable, or that it would involve too great an expense, its report shall be filed, and if it is approved by the board, the harbor commission shall cease to exist.

”If the commission finds that the harbor can be improved, developed or protected, and that the public will be benefited by its improvement, development or protection, and the cost will not be disproportionate to the benefits to be derived, it shall provide detailed plans and specifications for the best and most feasible plan of improvement, development or protection of the harbor.”

Some of the commissioners understand why the special district was formed and others apparently want to use it for different purposes.

The Port of Oakland is working with a private terminal operator to build a new facility and lease it to them over a 30-year period. This is the same type of development that is being proposed in Humboldt Bay. Goldman Sachs is only the investment banker, the funding source, for the real developer/operator.

That company would be thoroughly examined for frequency and types of cargo, financial stability, ability to repay any debt obligations, etc. before approval. And they might not even need any financing, so Goldman-Sachs would not be involved. That is how private development works.

If the project were to be funded with public money, probably revenue bonds, it would cost around $150 million to create a two berth modern shipping facility. The payback would be around $10 million a year using it only 25 percent of the time. The harbor district would need to raise the capital, then manage, maintain and do repairs to the equipment, plus create shipping opportunities. That would mean hiring more staff before any money comes in. If the District opts for private development, then the risk is private investment money. The Harbor District is then considered a “Landlord” port, leasing out the tidelands and letting private money develop the facility. This was done with both the Simpson pulp mill and the Louisiana-Pacific pulp mill docks.

Shipping fluctuates with the business cycle. The exchange rate “crisis” resulting in a weak dollar has allowed Caterpillar equipment sales to soar overseas. There are always opportunities in trade and right now exports from the USA are rising while imports are falling.

Back in the last century, when I was a harbor commissioner, I talked with Tim McKay about building a marine terminal. When it was explained that those creosote-soaked pilings would be replaced with clean material and all the environmental reviews would be performed, he stated that he was not opposed to moving forward on this project.

Today the anti-harbor development rallying cry of “Kayaks or Cancer” just doesn’t work. Using the fear tactic of importing weapons, chemicals, nuclear material, etc. is just fear-mongering. Let us give some credit to the folks at the Harbor District for having common sense. While this project will create some high-paying jobs, it isn’t going to create a stampede to Humboldt County. Humboldt State University has more employees than the proposed marine terminal. Heck, county government will probably create more jobs.

Let’s look at the controversy about diesel fumes. A diesel-electric hybrid motor powers railroad engines. The diesel engine powers the electric motors that actually move the train. The diesel engine, since it does not power the wheels, operates at a low rpm. This is not only the kind of efficiency that we would like to see in our cars, it is the cheapest and cleanest way to move cargo. The Gantry cranes used to load and unload cargo on a marine terminal are operated by electricity, not diesel. No port would even purchase a diesel-operated crane these days and probably can’t even give them away if they do have them. Instead of powering an on-board diesel generator for days at a time, freighters that are docked for loading and unloading can be supplied with electrical power from the local utility.

What a marine terminal will build is an economic engine. The Harbor District will finally have the money to do all of those recreation and conservation projects that have never been even looked at for lack of money — restoration of the six salmon streams feeding into the bay, removal of dioxin, better access to the bay, building of trails around the bay — all possible with the cash flow from terminal operations.

Let us not make this a divisive issue. This is not about jobs versus the environment; rather it is about creating jobs and enhancing the environment. If we unite and use this natural harbor to generate an economic boost to the county, we can create a green port model for the world.

John Frederick has been a Peace Corps volunteer, worked for the National Marine Fisheries Service, the U.S. Fish & Wildlife Service, taught classes in fisheries at CR, worked on a drag boat, loaded every type of cargo on Humboldt Bay for the local Stevedore company and has owned a few businesses in Humboldt County.

Opinions expressed in My Word pieces do not necessarily reflect the editorial viewpoint of the Times-Standard.