Port Prepares to Lay Off 10% of Work Force

PORTLAND-To help offset an expected $12.4-million operating loss caused by two container shipping lines canceling their calls on the Port of Portland, the port says it will lay off 81 full-time equivalents. The action represents a 10% reduction in its overall work force. The majority of the layoffs will occur in the administrative, marine and property development services departments. The remainder of the reductions will come from eliminating vacant positions that were expected to be filled during the 04/05 Fiscal Year. In addition to the reduction in employees, the Port is also initiating an early retirement program for certain employees meeting age and length of service criteria. Port of Portland executive director Bill Wyatt says the moves are “critical to reflect the current size of our business and revenue…[and]…help armor the Port against further possible fluctuations in business.”Combined with a cut of $2.6 million in materials, supplies and services, and a $1-million budget cut in the aviation division, the changes will result in a reduction of fixed expenses of approximately $9 million on an annualized basis. The Port intends to propose a revised budget reflecting these changes for approval at its Oct. 13 commission meeting.Port of Portland Commission chairman Jay Waldron says he expects the layoffs will not affect the port’s ability to continue work on “critical infrastructure projects” such as the redevelopment of the Alcoa property. Earlier this month, the Port of Portland Commission signed off on the purchase of the Alcoa property, which consists of 700 acres of industrial land in East Multnomah County, between the city of Troutdale and the Columbia River. The sale should close in 2006, after Alcoa completes site demolition and environmental remediation programs. The $17.3-million purchase price will be funded with a 25-year, 5.1% loan from an Oregon Economic and Community Development Department fund created with state lottery revenue. About half of the land is actually developable. The first phase of construction most likely will be a 100-acre industrial park. The second phase could be an expanded industrial park or an intermodal rail yard. A primary factor in the rail yard idea is whether Union Pacific is ultimately interested in the idea. Full build-out of the site could take more than 10 years.