The Port of Longview announced Friday that it handled a record amount of cargo in 2013, seeing cargo volumes soar by 18 percent.
The Port handled 7.4 million metric tons of cargo in 2013, compared to 6.3 million metric tons in 2012. Steel imports surged 47 percent, mostly due to the United States’ drastic reduction of foreign steel import tariffs. Bulk cargos continued to play a large role at the Port in 2013, with upticks in salt, calcined coke, wheat, soybeans, talc and soda ash.
Nevertheless, operating revenue at the Port dipped slightly in 2013, breaking a five-year record streak. Despite this, the port continues to hold its place as the third largest in Washington State by operating revenue (the amount received prior to paying expenses).
The Port of Longview’s 2013 year-end results presented to commissioners June 10 revealed a 6 percent decrease in operating revenue, falling from $33.8 million in 2012 to $31.7 million last year. The 2013 numbers still exceeded that of 2011, when the operating revenue was $28.3 million. The majority of the Port’s operating revenue is derived from cargo handling fees, while 4 percent comes from property rentals. After covering operating costs, the Port’s 2013 net operating income (before depreciation) was $6.7 million.
The 2013 operating revenue drop is attributed to fluctuations in cargo markets. Wind energy cargo and iron oxide fines, of which the Port handled large quantities in 2012, did not come through the Port last year. The demand for wind energy cargo plummeted due to delays in approving federal wind energy subsidies. Additional cargos were impacted as customers switched to sourcing cargo domestically and poor weather conditions affected crop production.
“Overall, the Port had another great year,” said Geir-Eilif Kalhagen, Chief Executive Officer for the Port of Longview. “We reinvest revenues right back into the Port so we may continue providing strong infrastructure for our customers and economic benefits for our community.”