Summary
The total annual economic impact of the Port's marine terminals is estimated to be: $10,622,427.80

Objective/Methodology
The Chamber was asked to determine the annual economic impact of the Port's marine terminals, as part of our service contract with the Port. The Port, experts within the industry and people who study it were consulted. Previous studies were also examined in order to provide background and comparative data. The "MARAD Port Economic Impact Kit" was the primary tool used to estimate the annual economic impact of the marine terminals. Please see References.

Scope of Study
The areas included for study in this report were the Port of Anacortes Marine Terminal II specifically focussing on the export of petroleum coke and logs. It also includes additional Project Cargo which utilized Curtis Wharf. These activities were selected because they are the core business of the marine terminals and because they correspond with categories in the MARAD software, allowing a "clean"use of that model. The impacts presented in this report were estimated for the year 2001 based on available data.

This study does not include the activity of Port tenants such as Dakota Creek Industries. It also doesn't include the considerable benefit of companies like Reisner Distributor who depend on the Port's terminal in order to do a portion of their business. Although the MARAD model does include a module for studying the impact of passenger ferry service, it was not considered to be within the scope of this report.

Relevant Data and Findings
The Port of Anacortes Marine Terminals are used most frequently for the export of petroleum coke and for logs. They are also utilized by special cargos which need the specific attributes of a deep draft dock. All three of these areas had considerable volume during 2001:

Petroleum Coke 355,857 tons
The economic impact of the coke-related operations includes a number of pieces: the transporting of the coke by truck to the Port, the loading of the ship, (stevedoring) and Port services.

Logs 57,119 tons
Log related operations also include stevedoring, trucking, debarking and other services.

Project Cargo 33,076 tons
Curtis Wharf was used for two major project cargos during 2001. The first was the delivery of a large piece of equipment which was then trucked to Tesoro Refinery. The other involved loading large rocks on to barges for Kewitt Pacific.

All of the data from these three areas was loaded into the MARAD software. The MARAD software, using internal calculations, generated an economic impact report. The conclusions in the report were cross-checked against industry standards' to ensure their relevance to local conditions.

Significant findings were as follows:

• 19.5 jobs relate to each million dollars of initial expenditure
• 116 jobs in the state are directly related to POA marine terminal activity
• 171.5 total jobs result from this activity
• Each ton of cargo equals $8.70 in direct economic activity
• Each ton of cargo equals $23.00 in total economic activity

The estimated economic impact of the Port's marine terminals is:

• Direct effects: $8,783,207.00
• Indirect and induced effects $1,839,220.80
• Total economic impact $10,622,427.80

Marine Terminal related jobs were estimated to pay and average of $19,299.00. This figure reflects a limitation of the MARAD software. We know from previous studies that wages here are higher than the MARAD estimate. As a national model it includes factors such as wages from areas of the country which pay much less. This is particularly the case in nonunion areas. Annual wages for marine terminal jobs in 1992 were estimated to be $32,100.00. Harbor wages in Seattle are currently estimated to be an average of $43,360.00 and Anacortes shipbuilder Dakota Creek Industries has similar average wages estimated to be $38.000.00. Therefore, the average annual wage for jobs related to Port of Anacortes marine terminal activities can be estimated to be in the same range.

References
Mike Hardy, Port of Anacortes Marine Terminal Manager
Paul Sorenson, BST Associates, Bothell, WA (425) 486-7722
MARAD Port Economic Impact Kit (MARAD Port Kit)(software distributed on CD-ROM) Version 1.1, U.S. Department of Transportation, Maritime Administration
Port of Anacortes, Economic Impact Study, prepared by Science Applications International Corportation, for the Port of Anacortes, September 1993
Pacific Maritime Organization

Acknowledgements
Mike Hardy and Paul Sorenson were extremely helpful in the research and preparation of this report.