Category: Business

  • Biodiesel coming to timber town’s rescue

    Aberdeen, the depressed timber town most notable recently as the home of Kurt Cobain, is hoping for economic revival based on renewable energy.

    After shriveling with the timber and fishing industries, the town recently broke ground on the country’s largest biodiesel plant, which is supposed to make 100 million gallons of fuel a year from farm crops. Seattle-based Imperium Renewables says its plant will employ 300 during construction and 65 full-time when it opens next year, according a Tim Egan article in the New York Times.

    The hope is that the plant will attract related renewable-energy technology. The town previously pinned its hopes on logging more of the remaining stands of nearby old-growth forest, expanding exports to Asia through the harbor and on the now-mothballed nuclear power plant nearby. Meanwhile Weyerhaeuser recently closed two mills in the area, costing a few hundred more jobs.

  • B.C. taking all workers

    “If you’re breathing, Canada’s West wants you,” an economist with CIBC World Markets said after release of the latest employment figures Friday.

    British Columbia’s jobless rate dipped to 4.6 percent and Alberta’s fell to a 30-year low of 3 percent in October, thanks to the booming energy industry. B.C.’s rate could fall below 4 percent in the next year, an economist said. Meanwhile Canada’s national rate was 6.2 percent, due to industrial downsizing in eastern provinces. In the U.S., the nationwide rate fell to a five-year low of 4.4 percent.

  • Ferry riders forced to pay steadily more

    The price of traveling by ferry in Cascadia continues to rise as government funding fails to keep pace with demand.

    B.C. Ferries will cost moreThis week, fares on B.C. Ferries’ major routes to Vancouver Island rose 2.8 percent and fares on smaller routes in the Gulf Islands climbed 4.4 percent. Commercial rates are expected to rise next month. Fares already increased earlier this year to cover then-rising fuel costs.

    Meanwhile Washington State Ferries, which increased fares by 6 percent in March, is considering another hike of 5 to 20 percent. This month the system will start charging for wi-fi Internet access, a service used by thousands of commuters. It will soon cost $29.95 a month.

    It’s unclear why ferry users are expected to pay directly for for transportation infrastructure while drivers get free use of the region’s clogged roads. B.C.’s transportation minister said the increases won’t affect the economy and dismissed complaints, saying people will adjust.

  • If Portland can handle strip clubs…

    Seattle’s voters are about to decide whether to overturn new draconian rules that essentially shut down the city’s tame strip clubs. Meanwhile Portland has at least 12 times as many clubs and looser rules than Seattle ever has, according to an excellent story by Jim Brunner in The Seattle Times.

    “Would anybody say Seattle is a superior place to Portland because it has fewer adult bookstores or strip clubs? I think that’s such a bizarre notion,” said Charles Hinkle, a Portland attorney who specializes in free-speech cases and has argued against strip-club regulations in Oregon. “I don’t think anybody in Seattle would list that in the top 100 factors as to why they chose Seattle to live.”

    Somehow Portland still manages to be rated one of the most livable cities in the country. Ditto for Vancouver. Any idea how many clubs they have?

  • Start-up university challenges education system

    While many around the region worry that schools aren’t churning out enough engineers and scientists, a new university in British Columbia has a novel approach: developing people who can think critically.

    The Quest University plans to open next fall in Squamish, with a multidisciplinary approach evenly split between sciences and arts. The backers say the liberal arts curriculum and close access to teachers will make it unique in Canada.

    “I don’t want to say everybody who comes out of a big institution is just a professional robot,” one of the backers told the Globe and Mail. “But real intellectual exploration happens when you’re interacting, and I do spend a lot of time working one-on-one in small groups with my students.”

  • Alaska Airlines adds nonstops from Cascadia

    Alaska Airlines, Cascadia’s dominant carrier, this week added a series of new nonstop flights to Mexico. More are likely on the way.

    The airline added the first nonstops to Cancun from Seattle and to Los Cabos and Puerta Vallarta from Portland. Counting new flights from San Francisco and Los Angeles, the airline expanded its capacity to Mexico by 22 percent. Alaska is still dealing with on-time and performance problems, but recently said it may add more distant destinations.

    What’s interesting is that Alaska is increasingly courting non-vacation travelers. It recently added Spanish in-flight announcements, a Spanish web site and year-around nonstops to Mexico City and La Paz from Los Angeles. Will it eventually restore the business link between Seattle and Mexico Cty? (Vancouver has 11 nonstops a week, according to that airport.)

  • Making Washington a ski destination

    With the 2010 Olympics about to focus winter-sports attention on the region, the Washington ski industry has a golden opportunity to market itself. But less-than-ideal weather, lack of overnight accommodations and expansion limitations make it unlikely to spring into the national spotlight, according to this article in the News Tribune.

    Wet, heavy snow is one reason that skiing accounts for only 2 percent of overnight recreational trips in the state — about the same as cycling and horseback riding. “If you can ski in Washington, you can rip any place in the world,” Chris Rudolph, marketing director for Stevens Pass, is quoted as saying. “But ‘Come ski our hard snow’ doesn’t exactly make a great marketing slogan.”

    Most ski areas lack nearby hotels and can’t expand because they are located on public land. Instead of trying to lure tourists, the industry is talking about modest improvements to keep locals from going to Utah and Colorado, let alone B.C. Crystal Mountain is expanding, building a hotel and adding transportation. But officials say the best marketing is with a ski bum image such as at Mount Baker, which supposedly sacrifices about $50,000 in corporate sponsorships to keep ads and TVs out.

  • B.C.’s key industry likely to slump for years

    British Columbia’s key forest products industry is in for several more lean years, despite the windfall from the recent lumber trade agreement with the U.S.

    Across Canada, the industry is likely to shrink through 2010 thanks to a slumping housing market in the U.S., according to a report Thursday by the Conference Board of Canada. The group forecast some help from a weakening Canadian dollar and gradual thinning of inventory, which should lead to higher wood prices. Refunds of millions of dollars in duties paid to the U.S., under terms of the recent lumber-trade agreement, should help soften the blow.

    Still, B.C. is likely to weather the downturn better than the rest of Canada because of its relatively efficient mills, an economist at the group said. Production in B.C. may shrink by 2 to 3 percent from 2004 to 2007, compared to a 20 percent drop in Quebec and Ontario.

  • Port CEO gets raise despite poor results

    Port of Seattle CEO Mic Dinsmore got another raise Tuesday, despite the taxpayer-funded port’s lackluster performance and financial problems.

    The 6 percent raise boosts Dinsmore’s compensation to about $340,000, more than twice the pay of the governor and far more than heads of bigger ports around the country get. Dinsmore lashed out at port commissioners who questioned the increase.

    Pay for performance makes sense and, in fact, compensation should be raised for public positions in order to attract more competent candidates. But it’s hard to make the case for additional pay while traffic at the seaport and cruise terminals drops and as Sea-Tac loses its competitive position to Vancouver and Portland.

  • New steps toward more regional air service

    The prospect of commercial airline service at a second Seattle airport came into focus this week, with a report outlining how Everett’s Paine Field could support such service.

    The potential addition of regional air service is the latest example of airport supply meeting growing demand for air travel around Cascadia. Vancouver International and several smaller airports in the Vancouver area are already expanding.

    Businesses north of Seattle want commercial airline service to the Everett airport, which is far more convenient to the area than Sea-Tac. Combined with more frequent, faster trains between Vancouver and Portland, the extra air service could alleviate the need for a new Seattle-area airport in the future.

    Airline flights at Everett are discouraged by a 1979 agreement with the neighboring communities. Some neighbors still say occasional airline service would be a disaster, causing school test scores to plummet, asthma, pregnancy complications, dropping property values, and an overall lower quality of live. The airport is mainly used by Boeing, which builds 747s and 767s there, Goodrich Aerospace and smaller private planes.