Cascadia Report

Category: Business

  • Vancouver (but not Seattle) a world commerce center

    Don’t let clogged traffic, overpriced real estate and a lack of major businesses fool you. Vancouver is a top center of global commerce.

    So says a new study by MasterCard ranking the top 50 cities as “world centers of commerce” based on their contribution to economic activity. Vancouver ranked 28th (between Montreal and Brussels), according to the index of six characteristics. It got high ratings for legal framework, ease of doing business and economic vitality. Those outweighed poor scores for being a financial center, knowledge/info economy and being a business center.

    Seattle didn’t even make the list, which included eight other U.S. cities. Vancouver’s result comes despite the city’s steady loss of headquarters and relatively weak corporate environment. Of course, the presence of two University of British Columbia professors on the nine-member panel that set the rankings could have something to do with it.

  • Another port under fire for bad finances

    Leaders of Olympia’s port are the latest in the region to take fire for sagging financial performance despite a boom in trade.

    A new shipping facility at the port has been repeatedly delayed by an environmental review and has had ripple effects throughout Puget Sound. The port commissioners reportedly declined to comment on the costs at their latest meeting.

  • Americans don’t know Canada or want to visit

    Americans don’t know much about Canada and aren’t interested in visiting.

    That shocking trend is contributing to a 34 percent drop in visits to the country by Americans since 2000 and threatening a chunk of a major industry in Canada, according to a recent study. Factors the study didn’t mention include the strict border rules and the rising Canadian dollar.

    Apparently prospects aren’t likely improve either:

    Boomers and their elders, tend to have a more favorable impression of Canada than Generations X and Y, who view Canada as an average, even boring, travel prospect.

  • Portland has land and plans to expand

    It must be nice to have abundant land. Consider Portland’s plans to expand its airport in anticipation of future traffic.

    The expansion would extend a runway on existing port property, in step with its master plan. It’s a contrast to Sea-Tac, which needs to become more efficient within its current footprint.

    Portland’s isn’t the only airport facing a bonanza. Oregon is considering a package of tax benefits for rural airports around the state.

  • Lesson from Japan: Boosting airport capacity

    Most visitors to Japan are funneled through Tokyo’s Narita Airport, which is a good example of how an airport can accommodate more people without growing larger. The lesson should put to rest the idea that Seattle needs a new airport.

    train station inside Narita airport terminalFor at least its first 30 years Narita was a joke. Located about 50 miles outside Tokyo, with a single runway and too-small terminals, it was the worst major airport in Japan and fell far short of those of rival cities like Seoul, Hong Kong, and recently Bangkok, Shanghai and Kuala Lumpur. Business began going elsewhere partly because of Tokyo’s travel hassles.

    Something similar could happen in Seattle, where Sea-Tac is plagued by delays and crowding even as rival Vancouver continues to stretch. A supposed solution? Site and build a new larger airport somewhere in the Puget Sound area.

    Tokyo offers a better model. On my recent trip, I noticed again how two train lines ferry travelers directly into the terminal buildings, a second long-planned runway has been added on existing airport property and — the biggest change in the last few years — the terminals have been completely overhauled to handle more people.

    Narita is also helped by the recent major improvements at Tokyo’s huge in-city domestic airport and at airports in Osaka and Nagoya. Coordinating select flights from Paine Field and other satellite airports could complement Sea-Tac too.

    Sea-Tac’s third runway will provide extra landing slots and improvements to terminals and ground transport could boost overall capacity. Faster rail between B.C. and Oregon would relieve some stress for local travel. Combined with ground improvements at Sea-Tac, such changes could meet the region’s demand and help knit it more closely together without the distraction of a new airport.

  • Finally, restoring relations with Alaska

    Amid a series of trips to build international trade relationships, Washington Gov. Chris Gregoire found time this week to visit Alaska, reportedly the first visit there by a Washington governor in more than 25 years.

    Relations have been frayed between politicians in natural resource-using Alaska and more urban Washington. But there’s this fact from the AP story: “Ninety-seven percent of Alaska’s goods pass through Washington, 70 percent through the Port of Tacoma and the rest through Seattle and private docks.”

    Regardless of politics, treating Alaska as a trading partner recognizes reality. Gregoire’s other trade trips have been to Japan, Korea, China, France, Germany, the U.K., Australia and New Zealand. Mexico comes next month.

  • Lesson from Japan: Leadership needed

    One surprise I found during my recent visit to Japan was the frequent discussion of what Nicolas Sarkozy might accomplish in France. The new president was on magazines and TV shows, and I had several conversations with Japanese who were enthusiastic for the tough reforms he seems to represent.

    The issue matters for Cascadia because, as Washington Gov. Chris Gregoire likes to put it, in a globalized economy we’re more like a small nation than a state. The economy of Cascadia is in better shape than in either Japan or France, which makes it more difficult to generate the leadership needed to fix our fundamental problems.

    The weekend I arrived, the former longtime leader of the Socialist Party — the only true opposition to hold briefly hold power in Japan in the postwar era — was on the top Sunday TV talk show discussing opposition to changing the no-military clauses in the constitution. Setting aside the specifics, what’s remarkable is that the entire political opposition seems to think that saying no is adequate policy. The comments were amazing because she said exactly the same things when I interviewed her six years ago.

    The same is true for economic leadership. Though Japan’s huge economy continues to grow and there are far more opportunities than ever before thanks to reforms, there hasn’t been nearly enough deregulation or revamping of policies. With a sclerotic opposition and lack of strong leadership, cynicism will only spread. Sarkozy came up as an example of the sort of change agent Japan needs.

    You could argue that our situation isn’t much different. In King County, the passing of Prosecutor Norm Maleng opens up opportunities for younger politicians. Someone needs to spell out a not just that globalization is an opportunity, as Gov. Gregoire has, but a vision for how this region can prosper. Today’s properity is all the more reason to develop this leadership now.

  • Canadian dollar soars, confusion ahead

    The Canadian dollar topped 94 U.S. cents for the first time in the 30 years this week, and the currencies could reach parity this year.

    There are plenty of reasons to be concerned about the economic impacts of the loonie’s rise. But I’m still worried about the confusion over which coins to use where.

  • Organic farms growing in B.C.

    One more thing to think about when you buy organic food: the impact.

    Consider that British Columbia has converted more land to organic farming — reportedly one in six farms are now organic. That’s despite the pressure of urban growth and rising costs that are reportedly squeezing small operators. Still, compared to the rest of Canada, the enthusiastic conversion in B.C. seems wise.

  • New competition for seaports

    China’s biggest shipping company plans to launch the first service to a new container port in Prince Rupert, British Columbia later this year.

    The new container port, which has uncongested rail access to markets in the Midwest, is the latest competitive threat to ports in Vancouver and especially Seattle and Tacoma. Last month plans were floated for another new container port on Oregon’s coast.