I s Or e g on B ui ld i n g a C u lt u r e o f S us t a i na b l e S uc ce s s?
Th e fo l l ow i ng re m a r ks a re e x ce rp t s f ro m a s p ee c h b y J o hn D. Ca r te r , Pr es i de n t an d C EO o f
Sc h ni t ze r S t e el I n du st ri es I nc . at t he 5 t h a nn ua l O r e go n L ea d e rs hi p S um m i t
“A
s you know, Oregon is strate-
gically located on a major
trade route connecting all of
our businesses to points north, south, east
and west. Portland is a creation of that
strategic location and historical trans-
portation focus — water, then rail and
roads.
But I am, quite frankly, concerned
about the condition of our transportation
system, and hopefully at the end of the
day ... you agree that collectively we need
to be much more proactive in planning
for and investing in our vitally important
transportation network. In my view, we
have been living off the foresight and in-
vestment that our parents’ generation
made — and the margin for growth that
they built into our transportation system
is now gone.
...sustainable success is a cultural value
and common goal. Success can be devel-
oped by and into any organization, any
company, or any state for that matter. It’s
developed by the leaders, the employees,
the citizens.
But it takes the people at all levels of
the organization working together —
making a commitment — to achieve a
cultural value and common goal.
The private sector is investing in Ore-
gon ... unfortunately, in my view, there
has not been a corresponding level of
public investment, particularly in the
freight network to support this private
commitment.
While some in this community have
questioned the need for transportation in-
vestments, I want to quote Gregg Weston,
President of the Clackamas County Busi-
ness Alliance: ‘Virtually every job in the
Metro area depends on our ability to
move products and employees.’
Mr. Weston’s observation holds true
for every job in the state. Let me read ex-
cerpts from the Governor’s recently re-
leased budget:
• Oregon’s participation in the global
economy is expanding.
• Foreign shipments of Oregon prod-
ucts reached a new peak in 2005, with
more than $12 billion worth of manufac-
tured goods shipped from Oregon to for-
eign markets.
• Oregon exports are growing at an an-
nual rate of 29 percent, and there are over
4,800 Oregon companies that export
goods to foreign markets.
• Oregon is currently the ninth most
trade dependent state in the nation.”
Oregon’s Sustainable Advantage, evi-
denced by that passage out of the Gover-
nor’s budget, is staring us right in the face
— it’s our historic competitive edge in
transportation infrastructure, and particu-
larly freight mobility, that leads us to
those foreign markets where 4,800 Ore-
gon businesses prosper.
Schnitzer Steel, for one, operates in
North Portland because we are strategi-
cally located on a deep draft port with ac-
cess to a variety of truck, rail, barge and
ocean carrier services with great access to
global markets, and we are also located in
the heart of a metals industry cluster,
which allows us to integrate with our cus-
tomers, vendors, and industry partners.
And what are we doing to keep and
improve that transportation advantage?
We all know about Connect/Oregon and I
congratulate the Governor and the Legis-
lature in making this $100 million invest-
ment in non-highway freight capacity.
Another $100 million is in the next bian-
nual budget.
But you also know that in last fall’s
elections, Washingtonians voted to make
a $ 9 billion investment in its transporta-
tion system and Californians voted for a
$19 billion investment. In England, bil-
lions have been invested in rail improve-
ments. China is making huge transporta-
tion investments. The world is investing
in infrastructure in order to stay competi-
tive in a global economy.
Are Oregon’s political and business
leaders keeping up? Several legislative
sessions ago, Oregon made a good down
payment on transportation needs, with
OTIA III. But we have close to $6 billion
in need identified and nothing is in the
pipeline to meet the need. If you look at
the last quarter-century, Oregon’s popula-
tion has increased by a million people,
plus those in Clark County that work
here. During that time period, we have:
• Added little new capacity to our road
and highway system in the Portland met-
ropolitan area — even though ODOT has
done a good job of stretching limited re-
sources and gotten local commitment
(and federal help) to achieve some good
capacity additions like the Bend Bypass,
Salem Parkway, and the Corvallis By-
pass, and some suburban area lane addi-
tions. Most funded work has been for re-
pair and maintenance on existing
facilities, bridges, etc.
• Helped the rail system with
Connect/Oregon, but have not made (nor
have the major railroads) major capacity
or service improvements, particularly in
the Portland area — despite efforts from
the Port to encourage such investment.
On balance, less service for business, cer-
tainly less service for passenger/ freight
traffic in the small towns of this state.
• Improved our passenger terminals at
the airport, but no new runway additions
for added capacity.
And more than a million new resi-
dents (72% increase).
If we really want Oregon to define it-
self in the global economy and maintain a
‘sustainable advantage’ in the world
economy, mobility and access to markets
must be in our focus.
We must invest in our freight capacity.
To build a culture of sustainable suc-
cess in Oregon, we need to make the eco-
nomic connection between jobs and how
the state spends money — and that con-
nection starts with transportation.
...We need as a State to design and de-
velop a comprehensive transportation
system, made up of components that ef-
fectively respond to the various needs and
changing circumstances.
At the national level, for example, the
Class I railroads are pushing local ship-
pers to truck. That will have an impact on
our highways in Oregon.
We also know that short-line railroads
need an infusion of capital. How might
we help them to better serve local busi-
nesses? Connect/Oregon is a good start,
but there are many examples of routes
that business can no longer use because
of needed repairs, etc.
...We have supported a multi-modal
system that has a strong mass transit
component because we know that for key
point-to-point requirements, things like
the light rail or the tram work well. But
we must not forget that there is no light
rail, streetcar, or even bus option for
much of the state.
Our transit investment can’t be made
without recognizing that we still need to
accommodate cars and trucks on the road
system, and not just in rural areas.
...What if we thought about the North-
west as a regional whole? Or at least our
part of it — why not merge the Ports of
Vancouver and Portland? What about
Kalama and Longview? Our largest op-
portunities in trade are with Asia, and will
continue to grow ... BUT our competition
is Panama, Vancouver, B.C., LA- Long
Beach, and the Oakland-SF Bay Area —
not our neighbors across the Columbia.
And should Seattle be competition, or
joint partner in making the Northwest the
height and energy gateway into the U.S.?
What if federal funds were no object?
Could we invest in high-speed regular rail
service between Seattle and Portland?
Would this cut down on traffic? Would
this link our two regional economies, par-
ticularly in high tech and biotech? Could
this single investment put the NW further
ahead of the NE Corridor or California?
Just look at how the investment by the
British Labour Government in the Chan-
nel Tunnel, the Channel Tunnel Rail
Link, and other major rail projects has
spurred all sorts of additional economic
activity. This link to the continent has
helped preserve Heathrow as the major
international air hub, it has help preserve
the City of London as a center of finance,
it will regenerate a major area of the city,
and it was key to landing the Olympics
for London.
...(We) need to make transportation in-
vestment priority number one. It won’t
get done without a concerted effort by the
business leaders demanding it, and gain-
ing the support of the political leaders
who can make it happen.
... Local arterials are as important to
moving freight as are the state highways.
Yet, here in Portland we continue to alter
our arterial network to suit localized
‘wants’ without regard for the ‘needs’ of
the broader region or statewide system.
As a consequence, trips that should have
been on local streets are diverted to the
state highways, further congesting critical
trade corridors.
While we gather here today in the
largest city in Oregon, the economic en-
gine of the state, I ask you this — do we
have an economic development strategy
and a job growth strategy that will allow
that engine to pull the load?
We simply cannot have a culture of
business sustainability in Oregon if the
political leadership sidesteps meaningful
discussions with the business community
over job growth, economic development,
transportation, and land use — or worse
still, contemplates localized land use and
transportation decisions that impede the
flow of goods to the ports of call serving
all of Oregon. We are in global competi-
tion as a state, and should be as a region.”
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PAGE 8
NORTHWEST LABOR PRESS
FEBRUARY 16, 2007