Propane terminal owner commits to build with union labor

Union construction workers are speaking out in support of a proposed propane export terminal at the Port of Portland.

Pembina Pipeline of Calgary, Alberta, Canada, has an agreement with the Port to lease 60 acres near Terminal 6 on the Columbia River. The company has signed a letter of understanding with the Columbia Pacific Building and Construction Trades Council (CPBCTC) to build the $500 million facility with a union workforce. The project is expected to generate between 600 to 800 construction jobs over two years.

Pembina says once completed, the terminal will support 35 to 40 permanent jobs. That employment is valued at approximately $7.2 million in wages and benefits annually. Additionally, an estimated $3.3 million in annual tax revenues would go to the City of Portland, as well as $2.4 million to Multnomah County and $3.1 million to Portland Public Schools annually.

[pullquote]After saying ‘no’ to coal and ‘not now’ to crude by rail, we are confident that we are saying ‘yes’  to the right partner at the right time.” — Port of Portland Executive Director Bill Wyatt[/pullquote]The Oregon AFL-CIO is attempting to meet with Pembina to secure a neutrality agreement for organizing the full-time workers once the terminal is operating.

“It is one of the largest single private capital investments in the city’s history. There are no taxpayer dollars being used what-soever,” said Willy Myers, executive secretary of the CPBCTC.

Myers was a-mong more than two dozen union leaders and members to attend a Jan. 13 public hearing of the Portland Planning and Sustainability Commission. The commission is considering a proposal to change the zoning code, which prohibits the piping of hazardous materials across an environmental overlay zone on the Columbia River. [Zoning codes allow for such pipelines at Port facilities on the Willamette River.]

Pembina needs 2,500 feet of piping to load the propane from the holding tanks to the dock and onto ships headed to Asia. Approximately 40 feet of that pipe must cross over the environmental zone.

A proposal currently before the  Planning and Sustainability Commission would amend the environmental zone to allow pipelines for propane only.

A second public hearing is scheduled for March 17. The commission will then take its recommendation to Portland City Council, which has final say on the zoning change.

Pembina also needs to secure local, state and federal permits before breaking ground.

Environmentalists vowed to use the zoning change process to stop the project. Also opposing the project is the International Longshore and Warehouse Union. Local 8 President Mike Stanton testified before the Planning and Sustainability Commission on Jan. 13, saying the terminal will squeeze out rail capacity for other cargoes.

Port of Portland executive director Bill Wyatt says the Port has been “extremely discerning” when considering recent energy sector cargo opportunities.

“After saying ‘no’ to coal and ‘not now’ to crude by rail, we are confident that we are saying ‘yes’ to the right partner at the right time,” he said.

Wyatt said propane has an excellent track record as a clean and safe alternative fuel, “and I am impressed by the level of experience, expertise and commitment to safety that Pembina brings to the table.

“We already handle exports of potash and wheat from Canada, and we’re excited to serve as the gateway for this new cargo type from our neighbors to the north,” Wyatt said.

Portland Mayor Charlie Hales welcomed the announcement of a half-billion-dollar investment in Portland and the jobs it will create.

“The city is committed to growing our economy on the land we already have, and holding industry to very high environmental and public safety standards. This proposal meets these goals,” he said.

Pembina’s overall plan is to build a rail yard with propane unloading equipment; eight transloading holding tanks to receive propane; refrigeration equipment; two large, refrigerated propane storage tanks capable of holding up to 800,000 barrels (approximately 33.6 million gallons); facility piping connecting the equipment; a control center, warehouse and maintenance facilities.

It wants to break ground by mid-2016 and have the terminal up and running by early 2018.