‘We can’t build buildings fast enough,’ says director
Industrial tenants hoping to land a spot at the Port of Kalama may want to act quickly if the last few years are any indication.
All of the current building space is leased in the Kalama River Industrial Park, which sits on the 1,000-acre port’s north end, and a 33,000-square-foot warehouse that hasn’t yet come online has verbally been snapped up by a current tenant.
Within the park, there are 20 acres to 30 acres of developed land left that is ready for build out and the port has purchased 120 acres of land that has not yet been touched. The port plans to buy about 100 acres more in the future, said port spokeswoman Merry Swanberg.
The anchor building of the industrial park was finished in 2003 after a rough period of little activity during the post-Sept. 11 economy. It sat empty for about eight months before New York-based ViaTech Publishing Solutions leased it in February of 2004.
"We didn’t really believe in the if-you-build-it-they-will-come approach," Swanberg said. "But we put something up and business has taken off, so we’re sticking with that philosophy."
After that, a second industrial building went up and Florida-based Mile Marker, which makes hydraulic winches, and Nascom Inc., which manufactures magnetic switches for security systems, moved in during the summer of 2005.
Best Built Products, a Washougal light-weight camper manufacturer that moved its operations to Kalama, and South Carolina-based Billhorn Board & Paper are sharing the third building, completed in 2006.
The paper-converting company has not been at the port three months and already is feeling the need to expand, said company president Jeff Billhorn. He has made a verbal agreement to lease the fourth building, 33,000 square feet to be completed by June, to use as warehouse space.
The port is planning on constructing seven more buildings in the park over the next five years.
"Basically, we can’t build buildings fast enough," said Executive Director Lanny Cawley. "But we don’t want to build too many at once because we need to do it right."
The industrial park was a port commission idea that dates to before 1994. It took many years for it to move forward, the biggest hurdle being an interchange bridge connecting Interstate 5 to port property. Funding was secured for the project and it was completed about six years ago.
But with success comes a problem – "We’re running out of space," Cawley said.
The port is acquiring more land on the north end for lighter industrial and commercial projects, and another option is redeveloping some of the sites it has west of I-5, he said.
Why Kalama?
Location, location, location, Swanberg said.
The port has good access to I-5, two rail lines – Burlington Northern and Union Pacific – and the deep draft Columbia River.
Billhorn Board & Paper opened its doors in Kalama Feb. 1 after looking at several older buildings around Cowlitz County. The paper-converting company chose the port because it could lease a new building with reasonable rates – roughly $12,000 a month – with the potential to expand into more space as it becomes available, Billhorn said.
"Basically we looked at it and signed the lease the same day," he said.
The 16-year-old company, which also has plants in Louisiana and South Carolina, relocated its vice president of production to Woodland and has hired 18 local workers. By the year’s end, Billhorn said he would like to have 35 on the payroll and ultimately employ up to 60.
Since the opening, Billhorn has been impressed with the local business community and said it was easier to set up shop in Cowlitz County than anywhere else he’s done so.
Energy Northwest chose the site after looking at several in Western Washington. It was one of the few locations that had all of the necessary characteristics, such as access to the Western Washington power grid.
Best Built CEO Rich Sweet said his company moved from Washougal in search of more space and ended up at the Port of Kalama because lease rates for a new building there are comparable to those of an old one in Portland or Vancouver. Plus, there are state tax credits for locating in a rural area, such as the B&O tax credit and employment subsidies.
The easy access from I-5 also was a big draw, he said.
The 12-employee company will need to upgrade soon and most likely will stay at the port. Sweet said Best Built is looking to up its employment to 20 within the next six months.
"It’s a good view of the river, that’s for sure," he said, laughing. "I know they’ve been trying to draw business into the area for some time and are building buildings to accommodate them. Overall, that has to be good for the area."
Port facts
The Port of Kalama is one of two ports in Washington that does not collect a port tax.
Sixty percent of inquiries about the Kalama River Industrial Park are a result of intense radio advertising.
The port is second on the West Coast for bulk cargo export with 8.8 million tons a year after the Port of Portland, which exports 11.8 million tons annually. The Port of Longview is third with 7.7 million tons, then the Port of Tacoma with 7.6 million tons.
Port of Kalama’s top employers:
Steelscape, steel manufacturing: 316
RSG Forest Products: 154
Emerald Kalama Chemical, chemical manufacturing: 151
Gram Lumber, forest products: 77
Kalama Export, grain: 55
Nascom, magnetic switch technology: 40
– From Port of Kalama records.
