Port of Newport hopes terminal and dock projects send message that it’s once again open for business

By SHAYLA ESCUDERO/Lincoln Chronicle

NEWPORT – At the docks of the Port of Newport, longshoremen carefully move crates plastered with the words “fragile” from a research vessel and onto trucks.

Some men wear sweaters and shirts with the logo of the International Longshore and Warehouse Union. They laugh and joke as they haul boxes and stand in the shadow of the massive R/V Atlantis.

The Atlantis, which carries the submarine that studied the sunken Titanic, had just finished a scientific expedition studying wave energy off the Oregon coast. The next group of researchers would be heading out to study underwater volcanoes.

The longshoremen’s job is to tie the vessel when it returns to port and help load and unload its crates and boxes of scientific materials. The work this summer was the first of its kind that Newport’s longshore local had done in more than 20 years at its home port.

In 2006, voters in the Port of Newport district approved a $15 million bond to renovate what is called the International Terminal farther up Yaquina Bay for both fisherman and longshoreman to use. But disputes between the two groups ran high, ultimately resulting in the return of a massive federal grant, the departure of a major investor, the loss of an estimated $1 million in annual revenue and a lingering reputation that the Port was closed for business.

Now, the Port is trying to attract more shipping, attempting to mend old wounds from the past and overcome its reputation. Some longshoremen are hopeful, others are skeptical.

Most of the union’s members are second- or third-generation members of the longshoremen’s union, with deep ties to Newport and golden memories of a time when the docks were booming, busy with work for the shipping industry, and when they were children watching their fathers at work.

The Newport local chapter has been a part of the West Coast longshoremen’s union since the 1930s, said local ILWU president Tracy Burchett. But over the years, local membership dwindled as some moved closer to more active ports.

“Mostly we work at other ports, in Oregon and Washington so we are happy to have some work at home,” Burchett said as the men worked on the R/V Atlantis.

Union members spend a lot of time travelling, often in week-long round trips to unload all types of cargo ranging from goods coming from overseas to luggage from cruise ships.

Working on the Atlantis was the first home job moving cargo the union local has had in years. To longshoremen, it signals a hope that more cargo jobs could be coming to their home port after a decade of contention.

Contentious history 

More than 10 years ago a $15 million bond project aimed in part to bring back the cargo business to Newport.

The project involved environmental cleanup and removing two sunken World War II era ships that made up the International Terminal pier and replacing them with a new design that allowed more access to commercial fishing boats and cargo ships.

The project drew favor from several groups – those with environmental concerns, commercial fishermen and longshoremen.

“As people who load and unload ships, it’s been frustrating to watch the Port’s cargo dock sit empty with a “Closed” sign for five years,” said an argument in favor of the bond in the 2006 Lincoln County voter’s pamphlet. “It’s not that there’s nothing to ship, it’s that the half-century old dock is falling into the bay and can’t be used.”

Fishermen, who were the primary users of the terminal, saw a mutual benefit of restoring the cargo docks that also made it safer for all boats coming into Yaquina Bay, according to the voter’s pamphlet.

During construction of the new terminal, more than a dozen inquiries came from various companies hoping to export logs. Construction of the new international terminal was completed in 2013, but not everyone agreed about a major project to bring shipping to the area.

In 2015 the Port received a $2 million federal grant to help construct a marine terminal with intermodal access. The Port had an agreement with Teevin Bros., who planned to partner with Silvan to operate a processing and sorting facility that would deliver logs to customers overseas.

The project was projected to pay back loans in the first eight years of the operation and then bring in $7.5 million after interest payments in the following 17 years, with an increasing rate of return.

“Overall, we believe the proposed agreement package is financially feasible and will spur economic development for Newport and the region,” an analysis for the Port by Beckett Group concluded.

As the project came closer to realization, conflicts arose between international shippers and some members of Newport’s fishing fleet. In a 2017 letter to the Port commission, several fishermen and fishing businesses urged the Port to terminate agreements with the shipping companies.

“The Port has not recognized the importance of the International Terminal to the commercial fishing industry (the primary users of the facility for the last 30 years) and has not authentically negotiated on our behalf with the logging and shipping companies to secure priority access during our high use times,” the letter read.

Mainly, mid-water trawlers used the site for vessels too large to dock elsewhere in Newport.

At the time, there were no Port commissioners who were longshoremen, but there were some who came from the fishing industry. Longshoreman were not represented until Pat Ruddiman was elected in 2023.

In an unprecedented move, the Port commission returned the $2 million grant, dropped its agreement with Teevin and gained a reputation to some that it was closed to the cargo shipping industry.

Moving forward

Now the Port is trying to overcome that reputation, said Port executive director Paula Miranda. But it’s not the only hurdle to getting shipping clients, she said.

“It’s difficult to heavily market the site when you don’t have what people are looking for,” Miranda said.

After securing a $4 million grant in January to bring log haulers to the site, Miranda hopes this will signal that the Port is open for business and has the type of equipment to draw cargo business. The haulers are expected to be at the terminal in November.

But not everyone agrees with that move either.

In March, the Midwater Trawlers Cooperative penned a letter to the Port commission with their concerns – mainly economic in the face of uncertainty around tariffs and the lack of any guaranteed shipping customers.

Some of the concerns of the Midwater Trawlers are the same – making sure the larger vessels aren’t displaced – as when the Port tried to bring shipping into the terminal with Teevin.

Some of the ships in their fleet are too large to dock anywhere else but at the international terminal and need space certain times of the year, executive director Heather Mann told the Lincoln Chronicle.

“It’s a difficult balance between economic development and the commercial fishing industry,” Mann said.

On Sept 5, longshore union members wrapped up their work, moving scientific equipment off the Atlantis. The vessel had given the local members several weeks of work from July to September when the vessel came back to unload or change crew, Burchett said.

“We are hoping with this that the port will look to get shipping back in here again and utilize the Port,” Burchett said. “This was the first cargo job in 25 years.”

Plans for Dock 7 as well

With the summer work, some longshoremen today are optimistic about shipping at the Port of Newport while others who have seen previous efforts fall through are skeptical.

It feels like every time steps were taken towards bringing cargo shipping to Newport, former ILWU local president Yale Fogarty said, there would be blowback and there would be two steps back. In order to bring in shipping, Fogarty believes the Port needs to find a partner to secure cargo clients. If they had someone connected to the shipping industry to market, he would feel more optimistic.

“The taxpayers deserve what they are paying for – a functioning port,” he said.

Miranda says Port commissioners have adopted a strategic plan for the International Terminal to be open for multiple uses.

“We do intend to bring cargo here, because ultimately, the cost of maintaining that terminal is such that we can’t just do fishing. It’s not sufficient,” she said. “We need more business.”

The Port’s main source of income comes from user fees, leases and grants. Dock 7 along Newport’s Bayfront is deteriorating and can only hold 60 vessels – about half of its capacity. A recent analysis rated the docks in poor condition.

In addition to fixing that issue, a $44 million Dock 7 project calls for it to be expanded and improved.

The dock mostly holds recreational boats, but the new project aims to expand the capacity for larger commercial vessels. The hoist dock – a public space for commercial vessels to change their deck gear and for independent fish buyers to offload and transport seafood – will also be rebuilt.

Last year, the Port applied for $34.5 million in grants but only received a $9 million state award, so they had to decline the money. This year, they received a $6.5 million state grant and are reapplying for federal funds.

Miranda wants the port to represent multiple users, but even today it can be difficult to speak to members of each group – longshoreman and fisherman – because there remains much contention between them. She knows that they will have to coordinate with the fisherman during certain times of the year when the full fleet of the larger mid-water trawler vessels is in port.

A lot of coordination will need to happen, she said. But she’s hopeful the Port can move forward and with the new equipment will be sending out a signal that the Port is open for business.

“I want to let the past be the past,” she said.

• Shayla Escudero covers Lincoln County government, education, Newport, housing and social services for Lincoln Chronicle and can be reached at Shayla@LincolnChronicle.org