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The high value-added sector is the dynamically growing segment of the Pacific Northwest 

 timber industry. According to the Center for International Trade in Forest Products at the 

 University of Washington, exports of secondary products through the Columbia-Snake river 

 Customs Districts, which includes all of Washington and Oregon, increased 181% between 1989 

 and 1993 "^ 



According to the Evergreen Partnership, a Tacoma-based private non-profit membership 

 corporation aiding the value-added sector, there are an estimated 1 ,400 secondary wood products 

 producers in the states of Washington and Oregon, employing 33,000 people. Exports increased 

 nearly 200% from 1989 through 1995, reaching $300 million.'''' While banks are reluctant to loan 

 money to the primary sector, the Evergreen Partnership and secondary businesses have had 

 success with banks by showing them that they are a separate, growing, profitable building 

 products industry. ■'5 



Sealaska Regional Native Corporation has shown interest in a new timber industry. At a 



March 20-21, 1996 Wrangell conference on secondary wood product manufacture, Sealaska CEO 

 Leo Barlow said that a timber industry based on pulp and cants is a thing of the past Sealaska 

 has been considering buying the old APC Wrangell sawmill and running it as a different kind of 

 operation, based on markets rather than commodity production. 



Transportation costs are not a bar to secondary manufacturing in Southeast Alaska. 



Barging containerized cargo by water is far less expensive per mile than hauling containerized 

 cargo by truck, enabling Southeast Alaska manufacturers to compete with manufacturers closer to 

 major transportation hubs 



One manufacturer of knockdown cedar firmiture on Vancouver Island"" ships a 40-foot container 

 of finished product to Vancouver, B C for trans-shipment to their customers in Europe. The 

 cost of trucking the container from the plant in Port Albemi to Vancouver is approximately 

 $700CN or $51 lUS Trans-shipment to European ports such as Antwerp, Belgium or 

 Bremerhaven costs around $2,500US Shipping costs are paid by the customer, and clearly the 

 transportation costs from the Vancouver hub to the final destination dwarf shipping costs to the 

 hub 



Barging this amount of knockdown furniture from Ketchikan to the hub of Seattle would cost 

 approximately $95 1 ,''■' for approximately 450 pieces Significantly, this quote for shipping does 

 not lake into consideration better deals that might be worked out with shippers This difference 

 in shipping cost to the hub would thus result in adding .98 to the cost of each piece of 

 furniture. Clearly this is not significant—and shipping costs from Seattle to some 



"^Center for International Trade in forest Products (CINTRAFOR). August 1994. Fact Sheet #13 



''''The Evergreen Partneship, Prospectus at 1 



'"Greg Schellberg, Evergreen Partnership Executive Director, workshops sponsored by SEACC in Ketchikan and 



Wrangell, February, 1996 



■"Sarita Furniture. Port Alberni 



""Quoted pnce of $5.37/1001bs, prorated including prorated pickup and delivery of container This amount does 



not consider more favorable deals that might be worked out with shippers and as such is overly costly. 



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