The Washington Port System: Gateways to Growth at Home and Opportunities Abroad

1Introduction & Overview

With approximately 40 percent of all jobs tied to international commerce, Washington is the most trade-reliant state in the nation. Geographic advantages — including proximity to the Pacific Ocean, natural deep water harbors courtesy of the Puget Sound, and an unparalleled network of roads, railways, and waterways — have made the region a gateway for trade and commerce.

Essential to Washington's preeminent role as an engine of international trade and economic growth is its extensive system of public ports. Washington's public port system operates 75 distinct port districts across 33 of the state's 39 counties — more separate ports than any other state in the country. The system includes seaports and airports and provides critical infrastructure that drives economic development across the state.

Location and geography give Washington state ports specific advantages over other West Coast ports. Washington ports are closer to Asian markets than other U.S. ports and are well connected to the upper Midwest. The ports of Seattle and Tacoma — whose cargo operations are managed by the Northwest Seaport Alliance — are natural deep-water ports requiring minimal dredging relative to other U.S. ports, and benefit from extensive nearby distribution center capacity for transloading freight to and from domestic containers.

2Ports Create Jobs

Both as a conduit for international trade and through direct employment at facilities throughout the state, Washington's public ports create good-paying jobs. In 2015, activities at Washington's public ports supported 71,250 direct jobs, of which 4,350 were from marine terminal operations on port district lands. Approximately 40% of the direct jobs are supported by Washington state ports other than the Port of Seattle and Port of Tacoma.

On average, port-supported jobs paid $76,200 in labor compensation including benefits — 9% higher than the statewide estimated loaded wage across all industries.

Statewide, through supply chain linkages and worker income expenditures, activities at Washington's public ports support an additional 104,000 jobs, bringing the total to 175,250 jobs statewide. Marine terminal operations support roughly 9,000 jobs, or 5% of total jobs supported by Washington public port tenants.

3National & Global Gateways

Marine terminals serve as critical infrastructure for goods entering and exiting the U.S. They are the primary gateway for many of Washington state's top exports. Washington produced $2 billion worth of apples in 2019, exporting an estimated $731 million worth. In the Pacific Northwest, the Columbia and Snake River systems are a leading gateway for wheat exports — 53% of all U.S. wheat destined for export comes down the Columbia River alone.

The Port of Kalama is the largest grain port on the West Coast, handling up to 250 million bushels of grain per year and loading as much as 2 million bushels every 24 hours. The Northwest Seaport Alliance is the second largest port in the country by agricultural trade tonnage and the nation's leading export gateway for refrigerated agricultural products, representing nearly 20% of national volumes.

Imports flowing through Washington's ports are equally vital. In 2018, over 11,400 Washington companies imported goods from 187 countries. Imports support the infrastructure and ocean carrier calls that Washington exporters depend on — without high volumes of imported goods from Asia, Washington producers would face higher operating costs or fewer options for reaching global markets.

4Supporting Washington's Leading Industries

Washington's public ports are instrumental to the state's leading industries. Many port districts invest in industrial and commercial lands that are particularly important for value-added agriculture production and manufacturing. Public port marine terminals facilitated the movement of an estimated $111.6 billion in merchandise and commodities exports and imports.

The Port of Everett directly serves the Boeing assembly plant in Snohomish County and is essential in the aerospace supply chain, accommodating all of the oversized aerospace parts for the 747, 767, 777, and 777X aircraft.

Washington ports also connect local producers to global consumers. In 2019, Washington ports imported an estimated $303 million of unroasted coffee, enabling Washington companies to roast and re-export $69 million worth — just one example of the mutual dependency between Washington's industries and its ports. In 2020, Washington exported nearly $590 million in ultrasound equipment, with Philips Healthcare (Bothell) manufacturing roughly 80% of Philips' global ultrasound equipment — all maritime exports flowing through the Port of Seattle.

The NWSA exported more than $325 million worth of dairy products in 2020 — an increase of nearly $80 million from 2015 — accounting for most of Washington's dairy exports. Washington dairy companies turned to international buyers such as China and Singapore to alleviate downward pressure on domestic milk prices, with Darigold reporting that 40% of its output is exports.

5Local Economic Development

Washington's public ports function as nimble "public enterprises" focused on implementation and community impact. State law directs public port districts to focus on local job development, efficient land use, industry growth, and recreation preservation — allowing ports to invest in land and capital facilities for job creation in ways not allowed to municipalities.

Rural coastal ports serve as vital assets to their communities. The ports of Ilwaco and Chinook are important centers for Washington's fishing industry — together the second largest port district for landed fish in Washington after Westport. Between 2008 and 2017, Ilwaco and Chinook averaged roughly $21 million of landed fish per year. In 2018, commercial fishing activity at these ports supported roughly 400 direct jobs representing 6% of all jobs in Pacific County, with overall economic activity supporting more than 1,300 jobs and $82.5 million in business revenue for the local economy.

• Port districts act as public enterprises — nimble and focused on implementation, able to move faster than municipalities in pursuing economic development opportunities.
• Unique infrastructure role — ports play a one-of-a-kind role in community and statewide infrastructure development, investing in broadband, industrial lands, and environmental restoration.
• Community-focused mission — ports prioritize local impact, partnering with universities, agriculture organizations, and state agencies to serve their communities.
• Local impacts that belie their size — even small port districts can have outsized economic effects on their communities, as shown by examples from Skagit, Whitman, and Ridgefield counties.