The Port of Bellingham, Washington’s second-largest port by acreage after Tacoma, is poised to increase its cargo traffic significantly in the coming years. A new rail line connecting the Bellingham Shipping Terminal (BST) to the BNSF network is expected to strengthen the regional supply chain, reduce trucking emissions, and boost cargo flow, with longer operational hours.
However, the expansion has raised concerns among local residents, particularly in neighborhoods like Fairhaven and South Hill. Port Commissioner Ken Bell acknowledged the frustration, calling the situation a “WT(F) moment” for these communities. The port, having been inactive for two decades, is now witnessing industrial development following the cleanup of the Georgia Pacific site. This has led to tensions, particularly over legal disputes and environmental concerns tied to past agreements, like the terminated deal with ABC Recycling.
“I admit the Port mishandled communication with the community. We are committed to doing better,” Bell said during a recent Bellingham City Club meeting.
While the Port’s industrial activities are essential, the organization also manages a substantial real estate portfolio, raising debates over the land’s most beneficial use. Some developments, such as the Marine Drive industrial complex and the Millworks affordable housing project, have sparked disagreements about their impact on the local community.
Industrial Growth in Birchwood
The Birchwood Neighborhood Association recently expressed concern over the Port’s industrial activities at 742 Marine Drive. This area, now home to businesses such as boat builders and Signs Plus, has benefitted from the Port’s infrastructure investments. Tyler Schroeder, the Port’s economic development director, emphasized that these investments foster local business growth and generate high-paying jobs. Currently, the Marine Drive industrial complex supports 50 such jobs, according to Schroeder.
Leasing to low-impact industrial tenants, which generate minimal noise, pollution, or traffic, is seen as a positive for surrounding neighborhoods like Birchwood. However, some residents remain skeptical, with Deborah Wessell from the Columbia neighborhood expressing doubt about whether the tenants will truly have a minimal impact.
Housing vs. Industry Debate
Schroeder explained that the Port faces challenges in attracting businesses to Whatcom County due to limited industrial land. The Port is focused on determining where infrastructure investments and rezoning can make sites more appealing for industries offering high-paying jobs.
The ongoing shortage of affordable housing, however, remains a major concern. The Port’s primary mission, as Bell noted, is economic development, and he questioned the idea of subsidizing housing while opposing industrial expansion along the waterfront.
The Millworks Project, an affordable housing development with 84 units, is one such example of the Port’s commitment to balancing both housing and industrial goals. This project, which the Port facilitated in collaboration with nonprofits and public entities, demonstrates Bell’s belief that providing jobs is the best way to support affordable housing. “The way we subsidize housing is to give people a job,” Bell asserted.
A Vast Real Estate Portfolio
The Port manages over 1,700 acres of real estate in Whatcom County, comprising 1.4 million square feet of commercial, office, and industrial space. In total, the Port has about 300 leases and agreements with tenants. Among its key properties are Squalicum Harbor, the Marine Drive Industrial Park, and Bellwether on the Bay, a mixed-use development featuring a luxury hotel, restaurants, offices, and a public park.
In addition to its marine terminals in Fairhaven—such as the Bellingham Cruise Terminal and the Bellingham Shipping Terminal—the Port has made strategic investments in land along the waterfront. These include a 137-acre property previously owned by Georgia-Pacific, which has been cleaned of toxic materials and now hosts a container village and various businesses.
The Port generates revenue from property taxes, rental income, and state and federal grants. In 2024, the Port collected nearly $1.4 million in rental income from its marine terminals, and it is investing in upgrades to improve capacity and efficiency.
Affordable Housing Projects
The Millworks project is one of the most notable developments on the Port’s waterfront. Phase 1, which includes 84 affordable housing units and a childcare center, was supported by public and nonprofit entities like Mercy Housing Northwest and the Whatcom Community Foundation. Phase 2, expected to add another 80 affordable units, will include additional amenities like a local food production campus and rooftop event space.
Mauri Ingram, president of the Whatcom Community Foundation, praised the Port for its support in moving the Millworks project forward. “It’s been incredibly helpful to work with a public sector partner that not only supports affordable housing but sees it as key to the waterfront’s redevelopment,” Ingram noted.
Future Developments and Challenges
Looking ahead, the Port plans to continue its expansion efforts, with projects slated for 2025, including stormwater improvements and the construction of new facilities at the Fairhaven Marine Industrial Park. The Port’s Regional Economic Partnership team is working to create more well-paying jobs by helping local businesses expand and by recruiting new industries to Whatcom County.
Guy Occhiogrosso, president of the Bellingham Regional Chamber of Commerce, emphasized the importance of the Port’s role in facilitating economic development, especially as Whatcom County grapples with an increasing cost of living. “Without the Port’s efforts, we would likely see fewer well-paying jobs in the area,” he said.
In this ongoing debate, the Port of Bellingham faces the challenge of balancing industrial growth with community needs, striving to meet the region’s economic goals while addressing the concerns of its residents.
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