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  1. Portside

Top 5 for 2025: The Port’s Big Moves for the New Year

February 12, 2025
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The start of a new year is the perfect moment to consider what the Port of Portland does best – move with purpose to make big things happen.

With that in mind, we’re sharing an inside look at our Top 5 for 2025: five notable priorities that you’ll see move forward in the year to come.

1. Set our strategic plan

In 2025, we’ll complete the update of our strategic plan, which will serve as the headwaters for all our planning at the Port and will take us into 2030.

The plan refines our focus, centering the “what for” of our work rather than a list of projects and tasks. At this point, we have gathered feedback on major themes from Port commissioners and our leadership team. After we finalize the plan with their feedback, we will begin implementing in the spring.

2. Know what’s next for Navigation

Throughout the Port’s history, efforts to maintain a navigation channel for the safe and cost-effective movement of goods along the river from Portland to the Pacific have shaped our region and economy. But doing this important work requires two things: funding and the right equipment.

Now that alternatives analysis and financial analysis studies are complete and we’ve resolved the funding mechanism for new equipment, we’ll replace our support craft and begin work on a bigger project – replacing the 80-year-old Dredge Oregon. While we won’t have a new dredge in place until 2030, here’s a rendering of the new vessel.

3. Keep making PDX better

Live trees, local shops and restaurants, a mezzanine to explore – the new PDX is here! And there’s still more to come…

In order to bring you the new PDX designs as soon as possible, we divided our work on the main terminal into two phases. For Phase 2, we’re working on remodeling the terminal’s north and south ends (where the security checkpoints used to be) to match the rest of the look and feel. When we tear down those construction walls in 2026, you can say farewell to the detour walkways between the terminal and the concourses. You’ll also say hello to 10 more local restaurants and shops, permanent exit lanes and more escalators and elevators down to the arrivals level, shorter walks to and from your airline’s gate, and new airline VIP lounges.

All this work is setting the stage for more improvements at PDX, like Alaska Airlines’ continued investment to offer new nonstop service, updating our Parking and Revenue Control System, and creating more opportunities for local businesses to succeed at PDX.

4. Stabilize and grow container service at Terminal 6

Over the last year, everyone’s been talking about Terminal 6, Oregon’s only international container terminal – a critical resource for businesses in every part of the state that imports and exports products ranging from seafood and animal feed to building supplies.

We’re making major progress to stabilize and grow container service, including taking steps to secure funding that’s vital to these operations. Governor Tina Kotek approved a $2.5 million Strategic Reserve Fund allocation and is recommending $20 million capital and $15 million dredging investments in her budget. We also negotiated a Letter of Intent with Harbor Industrial to eventually operate the terminal, and pursued business development opportunities with a trade mission and meetings with shipping lines.

Now we’re focused on securing that $35 million in the Governor’s budget, completing due diligence and agreements with Harbor Industrial to approve the lease and transfer the operations, and working toward restarting rail service at the terminal.

5. Move with purpose at Port properties

A broad overview of what’s happening at Port properties simply won’t cut it – to fully understand the impressive scope of change, we have to look at them individually.

At the Mass Timber and Housing Innovation Campus at Terminal 2, we confirmed new tenants (HUB Group, Daimler, Zaugg Timber Solutions), conducted infrastructure and site-readiness planning, and signed a lease with the University of Oregon Acoustics Lab. Next, we’ll move ahead with plans for deep soil mixing and sign a long-term lease for a new, permanent mass timber modular factory, the centerpiece of the campus.

At Gresham Vista Business Park, Grainger plans to open its new distribution facility in spring 2025. The newly constructed building is about more than the products moving through – it’s about Grainger’s commitment to contribute to the economic vibrancy of East Multnomah County.

On Swan Island, we entered a lease with Face Plant, a local business opening their flagship fast-food drive-thru restaurant. Face Plant is seeking to offer delicious, affordable and convenient food that happens to be plant-based in hopes of reducing carbon emissions and shifting the trajectory of climate change. 

Finally, we’re laying out our East Multnomah County Strategy, convening local governments, academic institutions, community organizations and businesses to focus first on ways to create economic growth, then on crafting a road map of priority projects to get us there.


While a Top 5 for 2025 can’t possibly cover everything the Port of Portland will take on this year, we hope this gives you a sense of where our focus will be as we create growth for our region through travel, trade and economic development.

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Timeline

A new purpose for Terminal 2

2017-2019 aerial of terminal 2

With an abundance of breakbulk cargo terminals along the lower Columbia River between the ocean and Portland, the Port began to consider whether Terminal 2, located on the Willamette River, should continue serving as a marine terminal. Multiple studies confirmed it: T2 was no longer needed for breakbulk cargo.

Instead, the terminal would provide the greatest economic benefit – meaning it creates quality jobs for the people who live and work in our region, and opportunities for rural and urban businesses – if redeveloped as an industrial park or manufacturing hub, especially given the short supply of industrial land in the Portland area.

Finding possibility in mass timber

2020

Wildfires devastated rural Oregon, wiping out thousands of homes and increasing the region’s urgent need for more affordable housing – and sparked new collaboration between state and Port employees, who create an informal network to provide housing for fire victims.

Meanwhile, at PDX, we were bringing together partners from across the region to construct a new airport roof made of mass timber. Designed and built in the Pacific Northwest, with materials supplied by 40 Oregon and Washington landowners, mills and fabricators, the new 9-acre airport roof changed the region’s idea of what’s possible. Some of the wood was even harvested to reduce the impact of wildfires.

The PDX roof was just the beginning.

Create a coalition to do something big

2021 Oregon Mass Timber Coalition logo

The next step was to formalize partnerships that had started taking root, leading to the formation of the Oregon Mass Timber Coalition. Our goal was – and is – to create a regional hub for innovation and mass timber industry growth through sustainable design, manufacturing and housing construction.

Coalition members include the Port of Portland, Oregon Department of Forestry, Business Oregon, Oregon Department of Land Conservation and Development, University of Oregon, Oregon State University, and TallWood Design Institute.

EDA funding kick-starts plans for a mass timber modular factory

2021 Still rendering of T2 Mass Timber site concept

Another EDA grant enabled the Oregon Mass Timber Coalition to launch a comprehensive strategy for expanding the mass timber housing market.

Funding targeted coalition projects across the state, from fire and acoustical testing of mass timber products for use in multifamily housing, to wildfire reduction and sustainable, traceable wood harvesting in regional forests, to developing the workforce training needed for new jobs in an emerging industry. It also provided funding for the Port to begin site preparation at Terminal 2.

Transforming a longtime marine terminal this way requires a lot of planning, investment and infrastructure work before construction of new buildings can begin. We started identifying partners to help build and operate a new mass timber and housing manufacturing factory, and working with Mackenzie, a local firm, on high-level master plans to guide ongoing development.

Demonstrating mass timber’s promise for housing

2023 interior example of fully furnished mass timber home

One of our early partners was Hacienda Community Development Corporation, a local nonprofit that built six prototype homes from mass timber at T2. The Mass Casitas pilot project, funded in part by $5 million from the 2023 Oregon Legislature, not only provided homes for families in Madras, Talent, Otis and Portland. It demonstrated that mass timber modular construction can provide a quicker, more efficient and cost-effective way to build housing.

Around the same time, the Port also began leasing space to modomi, a Portland-based company specializing in sustainable modular housing, and modomi began renovating an old warehouse into a modular housing manufacturing facility.

Campus plans take shape

2024 Rendering of UO acoustics lab: modern timber building

Two years of plans started to become reality with multiple anchor tenants announced for the campus.

The Port approved leases with the University of Oregon for a new mass timber acoustics laboratory, along with Zaugg Timber Solutions, which took over the warehouse renovated by modomi to create a temporary mass timber manufacturing facility. With plans for a permanent mass timber modular factory at T2 as well, Zaugg began efforts to build an interim modular manufacturing facility and recruit for its training program in Switzerland.

Throughout all this excitement, we continued working out costs and plans for making sure soil is stable for future construction at the campus, and securing additional federal funding for developing critical infrastructure.

What’s next

2025-2028 man in hardhat and harness working on timber building

When complete, the 39-acre Mass Timber and Housing Innovation Campus at T2 will include manufacturing, research and development, skills training, and incubator space for small and emerging businesses.

In 2025-26, we’ll work on soil stabilization and critical campus-wide infrastructure improvements. We’ll also work with University of Oregon as they undergo design and permitting for their new acoustics lab – expected to begin construction in 2026 and open in 2027 – and finalize plans with Zaugg for a new, permanent mass timber modular factory to open in early 2028. Zaugg will begin producing mass timber modular housing units, industrial and commercial buildings, and prefabricated mass timber building components even sooner, as early as 2026, in their interim facility.

And we’ll continue collaborating with partners to make sure workers are prepared for the new, high-quality jobs in the emerging mass timber industry.

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