Port of Vancouver USA approves $68.5m 2018 budget

The port’s 2018 budget, which is $16.7 million lower than 2017 levels, projects operating revenues of $38.22 million, an increase of 3 percent over estimated 2017 operating revenue results.

   The Port of Vancouver USA’s board of commissioners has unanimously approved a $68.5 million 2018 budget for the port, $16.7 million lower than the Washington state seaport’s current budget of $85.2 million.
   The decrease, the port explained in a Nov. 14 statement, is primarily due to the completion of major components of two construction projects – the port’s West Vancouver Freight Access infrastructure investment project and the Centennial Industrial Building, a 125,000-square-foot light-industrial building capable of housing up to five tenants.
   The 2018 budget projects operating revenues of $38.22 million, an increase of 3 percent over estimated 2017 operating revenue results. Seventy percent of projected 2018 operating revenue is from marine, terminal and rail operations, and the other 30 percent from industrial property leases, rail and facilities.
   The budget also projects operating expenses of $30.32 million, a 10 percent increase over the estimated 2017 operating expense results. The increase is mainly due to the increase in direct cost of sales related to increased revenue in the 2018 budget, the port said.
   Twenty-two percent of the port’s capital budget is allocated for the completion of the West Vancouver Freight Access project, while 36 percent is allocated for maintaining port infrastructure and IT systems. The remainder is allocated to various waterfront, facility and terminal improvements.
   The port’s 2018 budget also projects overall cargo volumes at 8.4 million tons. Forecasts for the handling of grain and auto volumes are expected to exceed 2017 expected volumes, the port said, as are wind energy commodities. Additionally, bulk mineral exports – particularly copper concentrates – are expected to grow based on customer expectations and renewed export volumes.
   The budget also states that new infrastructure, in the form of marine and industrial warehouses, may be needed to provide additional capacity to meet expected market demands.