CB could become coal port again

Port officials say 100 ships per year could take fuel deliveries
2011-07-22T11:00:00Z CB could become coal port againBy Gail Elber, The World Coos Bay World
July 22, 2011 11:00 am  • 

Coos Bay might see coal exports, but not from the general-purpose cargo terminal the port would like to build, Oregon International Port of Coos Bay CEO Jeff Bishop told the Port's commissioners Thursday night.

Coal exports would bring too many ships for the cargo terminal to handle, he said. 'If any coal terminal is developed in Coos Bay, it would have to be a stand-alone terminal."

In March, after environmental scrutiny stalled a plan to ship coal out of Longview, Wash., speculation began on whether Coos Bay might see a similar proposal. In his monthly report to the Port's commissioners, Bishop said the Port had received a public records request on that subject from the Sierra Club.

'We are in discussions with coal developers and have entered into nondisclosure agreements with those companies," Bishop said. 'We don't want anyone to be surprised."

Bishop said the arrival of one coal train per day would create 100 ship calls per year.

For comparison, when shipping in Coos Bay was at its peak in 1983, the port saw slightly fewer than 400 ships per year.

Bishop said port staff was researching the issue and would make a recommendation to the commissioners on any opportunity that might arise.

Marine reserve proposal

David Koch, the Port's chief operating officer, reported on the status of efforts to make a recommendation about a marine reserve or marine protected area in the Cape Arago area. After 18 months of discussion, the Port's Marine Reserves Recommendation Committee, composed of stakeholders, decided in March to endorse a proposal creating no new marine reserves or marine protected areas in the area. The port asked the group to prepare majority and minority reports, but those haven't been vetted or approved by the committee members.

Meanwhile, the Oregon Legislature considered HB 2009, which would have required the committee to make its recommendation directly to the state's Ocean Policy Advisory Committee. But that bill failed.

Now, Koch said, port staff will meet with the majority and minority report authors and other committee members, offering suggestions on revisions that may be necessary to achieve consensus. When those reports are in hand, staffers will make their own report and submit all three to the commissioners. Koch said that the staff might conduct some more study of the issues. He said the whole process might take six to nine months.

Meanwhile, Gov. John Kitzhaber plans to issue an executive order regarding several marine reserves along the coast, but Cape Arago isn't one of them.

Rail work continues

The port awarded a contract for railroad ties to Conrad Forest Products of North Bend. The port will pay $3.3 million for 90,000 Douglas fir railroad ties treated with ACZA (Chemonite). Conrad won the contract over two out-of-area competitors. The ties will be delivered in December, to be used in long-term track rehabilitation by a contractor yet to be selected.

Koch updated the commissioners on the progress of repair work. Some of the work is being done under a declaration of economic emergency, without competitive bidding, to enable the line to open in October to meet the needs of Roseburg Forest Products and other shippers. On Thursday night, the commissioners renewed the emergency declaration.

LRL Construction will be working on Phase 3 of tunnel repairs until September. Although that contract was awarded under the emergency declaration without a bidding process, the port is paying the same rate LRL charged as the winning bidder on Phases 1 and 2.

But most of the work needed to get the railroad running before Oct. 1 is being done on a competitive basis. That includes rail geometry testing, signal repairs and updates, and rehabilitation of rail structures, bridges, and crossings.

Koch said that part of the line between Danebo and Veneta may be able to open before Oct. 1. By the end of the year, it hopes to have the line open as far as Coquille.

The port is still preparing bid packages for long-term rehabilitation work.

Thursday night, the commissioners approved an interim agreement with ARG Trans, the company that will take over operation of the rail line once rehabilitation is complete.

Other business

• Port staff and a community volunteer have undergone Operation Lifesaver training and are qualified to train people of all ages in railroad safety. Training is needed because the area has been without railroad traffic for four years. Elise Hamner, the Port's communications manager, said staff plan to give extra attention to training teens, young adults, emergency responders and ATV riders. Any group can schedule a safety presentation by calling Hamner at 541-267-7678.

• The Port's ice dock in Charleston is making more money than budgeted. It has sold $36,000 a month in ice for the past two months.

• Coos Bay City Manager Rodger Craddock reported on efforts to improve parking at the Eastside boat ramp, owned by the Port and developed and maintained by the city. The city plans to create 22 new vehicle/trailer spots by temporarily graveling an area next to the existing lot and then seeking funds from the state marine board or the lottery to pave it. A public meeting July 28 at Millicoma School will let neighbors comment on the plan.

• Jody McCaffree, chairman of the Coos New Energy Workgroup, an advisory committee to the Coos County commissioners, described C-NEW's efforts to create jobs through green energy projects. She suggested the port could bring in a wind energy consultant to help the city of Coos Bay develop a policy on wind turbines so that the current moratorium could be lifted. She also asked about a recent trip by Bishop and commissioner Caddy McKeown to Germany and Portugal, where they visited facilities related to potential port projects.

Bishop said the trip was covered by a nondisclosure agreement with a client of the port, but offered McCaffree an opportunity to execute a nondisclosure agreement of her own so that she could learn the details of the project.

'I'll have to think about that," McCaffree said after the meeting.

• The Port selected Pauly Rogers & Co., a Salem firm, as its auditor.

Reporter Gail Elber can be reached at 541-269-1222, ext. 234, or at gelber@theworldlink.com.

Copyright 2015 Coos Bay World. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

(11) Comments

  1. Sherman
    Report Abuse
    Sherman - July 28, 2011 6:34 pm
    Wind turbines in Oregon? The land of the Spotted Owl, tree huggers and CAVE people? It's going to be fun watching this one evolve. I think Jody may be under the misconception that everyone in this town who loves protesting economic progress will, for some reason, readily embrace her pet project. Noisy, expensive, bird-killing wind turbines on hundreds of acres of cleared timberland in Oregon? Good luck. (See "moonpenny" comment above.)
  2. bes
    Report Abuse
    bes - July 28, 2011 4:34 pm
    WHO NEEDS COAL WHEN WE HAVE SUN, WHO NEEDS LNG WHEN WE HAVE WIND, WHO NEEDS TO BE FOOLISH ENOUGH TO BE EXPLOITED BY THE LOWEST BIDDER WHEN WE CAN DO BETTER THAN GIVING IT AWAY..WAKE UP PEOPLE, BIG BUSINESS IS NOT YOUR FRIEND, YOUR DEDICATED LOCAL NEIGHBORS ARE YOUR FRIEND, THEY CARE ABOUT AIR AND WATER QUALITY, FILTH AND POLLUTION..LET'S NOT BE FOOLED ANYMORE
  3. Accountability Please
    Report Abuse
    Accountability Please - July 28, 2011 1:29 am
    Exporting coal did not pencil out here in the 1980's. Does the Port have a business plan showing this will actually pencil out?

    The Port of Longview was getting all set up to export coal and then just a few months back they withdrew their application. Does the Port know why?

    The Port earlier this month went to Bremerhaven, Germany and Portugal. They come back and announce, no...not wind turbine development like Bremerhaven is doing but 19th century coal export. I find this very disturbing.
  4. Coos County Resident
    Report Abuse
    Coos County Resident - July 27, 2011 1:00 pm
    As long as JODY is around she will fight any industry that trys to come here..
  5. Tman
    Report Abuse
    Tman - July 27, 2011 9:10 am
    This will never happen. The bay is littered with business opportunities that the "don't change my coos county" coalition has hammered. Why change when the govt takes care of you? Might have to get out and work for the money... Naaaa, never happen. Oregon, the welfare nanny state.
  6. raildog
    Report Abuse
    raildog - July 26, 2011 2:13 pm
    If we get coal here, we can build our own road to the 5!
  7. MindTwisted
    Report Abuse
    MindTwisted - July 24, 2011 6:36 am
    Ah yes, let's all listen to David Koch, what could possibly go wrong?
  8. m00npenny
    Report Abuse
    m00npenny - July 23, 2011 9:24 am
    This is going to be a lengthy fight. Environmentalists sell their mother to gain the "power of use" when it comes to our coast. Wind turbines? Are tree-huggers now going to be pole-huggers too? Put the ugly things in your own yard, dont screw with the coastlines beauty.
  9. Citizen
    Report Abuse
    Citizen - July 22, 2011 11:02 pm
    Make it happen! If people want this community to thrive again we all need to welcome these opportunities. Coal, LNG, and what about bringing in container ships? All this activity could the upgrade of Hwy 42 all the way to I5. That would make this area grow! Even tourism would benefit. Folks could zip up I5 and cut over to Coos Bay. I'd bet Hwy 38 an 126 traffic would re route to 42 and help those communities immensely. All of this would bring our gas prices down and so forth.
  10. dan milburn
    Report Abuse
    dan milburn - July 22, 2011 4:43 pm
    Here we go again.........another nickle export facility type endeavor to wring the resources out of the area. Why not leave something for the future generations when they figure out how to use them more effectively?
  11. trukdrvr
    Report Abuse
    trukdrvr - July 22, 2011 1:36 pm
    Sign an agreemnt jody and you will lose your effectivness and credibility. Why is jeffry bishop hiding so much under non disclosure agreements? Why would anybody pay to send mckeown and bishop to portugal. mckeown apparently told her neighbors that she visitd fatima. Not a port. Does bishop understand that he works for us? That port is a public entity. The tax paying citizens of the port district have a right to know whether jeffry is giving us fact or fiction. His track record isnt so good.
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