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CONTACT THE HERALD
Mike Benbow, Business Editor
benbow@heraldnet.com
 
Published: Wednesday, October 3, 2007

Boeing pier could open in February

"A combination of factors" could bring the final bill for the Port of Everett project to $30.6 million.

EVERETT -- A new pier intended to handle jet parts for the Boeing Co.'s Everett assembly plant will likely be ready for operation in February after a delay of many months and a cost overrun of millions of dollars.

Port of Everett commissioners learned Tuesday that the project, named the Mount Baker Terminal, is making good progress but will wait at least 40 more days than expected for installation of an electric crane designed to handle the oversized containers holding the jet parts.

John Klekotka, port engineer, advised commissioners on the project while seeking approval for a project to put the finishing touches on the terminal, which is designed to receive cargo delivered on barges and allow for an easy transfer to nearby rail lines.

A railroad spur near the site runs directly to Boeing's Everett site.

The low bidder on the work was Pacific Crest Construction, which said it would do the work for $415,395. The engineer's estimate was $323,628 to do such things as build a building foundation, build ramps and stairs, add railings and a catwalk, install striping on the pier, add an anti-grafitti coating to the structure, and install an entrance gate.

Commissioner Connie Niva questioned the big difference between the lowest bid and the estimated cost. "Is this up because these people are all busy or because of materials or ...," Niva asked.

Klekotka said those are among reasons why construction projects have been rising in cost lately.

"China has sucked up materials worldwide to its market," he said. "There are also labor shortages that we keep hearing about. It's a combination of different factors.

The pier project is part of a $3.2 billion package of incentives the state offered Boeing if it would locate assembly of the new 787 Dreamliner in Washington. The state offered to pay $15.4 million for the pier.

Later the project was estimated to cost $25 million. Klekotka said the expectation is that it will cost $30.6 million when complete.

The pier was originally on a fast-track for completion, and the port paid a considerable sum to fend off threatened lawsuits and opposition from local residents and from four tribal groups that included the area near Mukilteo as among their traditional fishing grounds.

Port officials agreed to spend $600,000 to help pay for a railroad quiet zone for residents who threatened a lawsuit, made cash payments to the tribes, and also agreed to create an artificial beach in the area to provide saltwater habitat for salmon and the small fish they eat.

Other unexpected costs, Klekotka said, included switching to a different crane that cost an additional $2 million, switching from diesel to electrical power and spending $700,000 to run electricity to the site.

The pier was expected to be completed early this year, but the rush-rush schedule was slowed as officials changed its expected use and secured a different crane.

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