Guest column: Consolidate south county ports in 2025

Published 8:43 am Monday, November 18, 2024

I recently wrote an article about the gross inequity in taxes between our three peninsula ports. The gist was that one port doesn’t have near enough money while another with a modest amount has been making it work but may not be able to weather another economic downturn. The northern port has plenty of funding but has major issues with how they conduct business. The easiest and strongest option going forward is for all three ports to combine districts and select commissioners to fairly represent all of south county going forward.

What advantages would consolidation bring? This merger would be a strategic tool for our three ports to strengthen their overall position among northwest ports and streamline operations.

Most ports are constantly seeking ways to enhance efficiency, reduce costs, and get things done and this strategic move would pave the way for the sustained success of all three of our local ports. Three united ports prosper while separately they continue to struggle. Simple as that.

Pull Quote

Most ports are constantly seeking ways to enhance efficiency, reduce costs, and get things done and this strategic move would pave the way for the sustained success of all three of our local ports. Three united ports prosper while separately they continue to struggle.

Big benefits

This is how it would stimulate our local economy and the overall well being of the ports and communities themselves.

1. Increased access to capital:

Consolidated ports likely will find it easier to access capital and especially for grants and matching grant funds. The larger scale and diversified operations make the consolidated ports more attractive to business, investors and financial institutions (banks and government granters). This increased access to capital provides them with the financial resources needed for expansion, innovation, and other strategic initiatives.

2. Long-term sustainability:

One of the prime benefits of consolidation is long-term sustainability. By leveraging the advantages mentioned above, consolidated ports are better equipped to weather economic uncertainties and industry disruptions. The strategic alignment through consolidation contributes to the overall economic health and resilience of the ports.

3. Streamlined compliance and governance:

Navigating regulatory frameworks and ensuring compliance can be complex for most small ports. Consolidation allows them to streamline their compliance efforts by centralizing governance and sharing best practices. A more unified approach to regulatory requirements ensures that the consolidated ports operate within legal frameworks, reducing the risk of penalties and legal issues.

4. Talent pool optimization:

Combining the ports should result in an enriched talent pool. Consolidation can help identify and retain top-performing employees, leading to a more skilled and motivated workforce. The sharing of knowledge and expertise across all ports can contribute to a positive organizational culture and foster developmental opportunities for employees.

5. Enhanced risk management:

Consolidation allows ports to spread risks across a broader base. Diversification, helps mitigate the impact of economic downturns or specific challenges such as government reductions in funding sources like grants. By combining resources and expertise, the consolidated ports can navigate these uncertainties more effectively.

6. Optimized financial performance:

A significant benefit of consolidation is the potential for improved financial performance. Consolidated entities can achieve cost savings through the elimination of duplicate functions and optimizing financial management. The ability to negotiate more favorable financial terms with suppliers of inventory and, moreover, a larger and more diversified port can attract more diverse business interests, positively impacting their overall financial health.

7. Improved operational efficiency:

Consolidation would enable the ports to streamline their operations by eliminating redundancies and optimizing workflows. As overlapping functions are identified and merged, the ports can eliminate inefficiencies and achieve a more streamlined and cohesive labor structure. This enhanced operational efficiency contributes to a more agile and responsive labor structure.

8. Enhanced economies of scale:

One of the foremost benefits of port consolidation lies in the creation of economies of scale. By combining resources and facilities, they improve overall cost efficiency by increasing their ability to negotiate better deals and enhancing their purchasing power.

Consolidated workforce

We would need a board of commissioners and a chief executive officer (manager) to oversee:

1. An administrative and financial officer with an accounts payable/receivable person, an HR/records/Procurement officer, and a payroll and administrative officer.

2. An operations officer with a facilities director doing project planning and overseeing a an adequate maintenance crew

3. A safety/communications and marketing person to maintain a culture of safety for the workforce and public users, capable of representing the port formally in public, for media events, and while marketing our combined assets.

4. Right now we have three ports and a couple with perhaps two or three people trying to do all these things. Wouldn’t it be better if there was a consolidated group comprised of persons focused with a more specific mindset all working toward prosperity? Expertise instead of inefficiency — a win win.

Consolidation just makes sense and we can do it two ways, according to state law RCW 53.46.010. First, upon a resolution by all three port’s commissioners to create a single district, or (by the same statute), upon petition signed by 10% of the voters voting in the last general election. The first option is by far more efficient and it just makes more sense as does consolidation. Come on commissioners, embrace this!

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