Port bond left in package after last-minute battle in legislature

An amendment to a $150 million bond package, which sought to unravel the vote of the Maine Legislature's Appropriations Committee to include $5.75 million in bond funding for the ports of Eastport and Searsport, started a battle on the floor of the Senate during final moments of the legislative session early Saturday morning, June 13. Senator Peter Mills of Skowhegan had introduced the amendment, which was defeated, leaving the Port of Eastport eligible for $4.5 million to use for the acquisition of an automated conveyor system that could build the port's customer base through the import and export of bulk cargo.

The bond package had originally been proposed in March by Governor John Baldacci and included $10.5 million for Maine's three major ports, Eastport, Searsport and Portland. At that time it was understood that $1.5 million would be used by Eastport's port for a transload facility for the Calais Branch rail line and for an engineering evaluation of composite technology to repair the breakwater. However, says Senator Kevin Raye of Perry, that funding allocation was changed in response to the indefinite shutdown of the Domtar mill in Baileyville in early May. In response to the shutdown and the potential devastating loss of jobs C over 300 at Domtar and 70 directly associated with the port C the governor came to Baileyville and met with the Washington County delegation, representatives of the Eastport Port Authority and neighboring communities. From that meeting the delegation created a list of high priority items for the county in the face of an uncertain future.

"The port indicated that the most important part [of their future survival] was bulk cargo handling," says Raye. "The survival of the port hinged on it." In response to a comment to the press made by Senator Mills that the switch in funding priorities hadn't been transparent, Raye said, "It wasn't really a switch; it was more an outgrowth of the Domtar calamity and the survival of the port. The survival of the other two ports is not in question."

The Mills amendment would have required that $4.5 million of the funds be dedicated to the Port of Searsport for a dredging project, leaving $1.25 million for Eastport. During a floor debate between Mills and Raye, Appropriations Committee Chairman Senator Bill Diamond of Windham and Ranking Member Senator Richard Rosen of Bucksport joined Raye in speaking in opposition to the Mills amendment.

After a debate on the floor, the Senate voted 18-14 to support Raye's motion to kill the amendment. As a result, the Port of Eastport will remain eligible for the money needed to fund the bulk cargo handling system in the bond issue. The bond package then was approved by a vote of 32-0 in the Senate and 127-13 in the House of Representatives.

After the bill passed, Raye received assurances from Governor Baldacci that the $4.5 million would be dedicated to Eastport's effort to fund a bulk cargo handling system. Along with the support of the Washington County delegation, Raye noted, "I'm also grateful for the governor's support for this vital development at the Port of Eastport. It is very good news for Washington County."

Bulk commodities, explains Eastport Port Director Chris Gardner, will greatly expand the ability of the port to grow. In the two to three years that he has been with the port, he says that conversations have taken place with potential customers about pellets, chips, aggregate and other bulk items, but that the port's lack of a conveyer system severely hampered its ability to expand its customer reach. The new conveyer "will be a fully automated system with today's technology; it won't look anything like the conveyers of old," he says. He also notes that it will allow the port to grow both import and export capacity.

As for the two projects originally earmarked for $1.5 million, Gardner says that they are still in the works, but the port may have to use a different funding approach, including private and public partnerships and federal stimulus funds.

The port funds are included in a $71.25 million transportation bond issue that will be voted on by Maine residents in November. "With the support of Maine voters, this vital funding can help secure the future of the Port of Eastport," says Raye. "The port has long suffered from its inability to accommodate bulk cargo, making it almost totally dependent on Domtar pulp shipments. The impact on the port of the recent Domtar shutdown was clear and devastating. But the arrival of windmill parts through the port has been a welcome development, and voter approval of this bond in November will provide another important boost."