BLOG: Ostrava's Economy tied to Portland's (Part II)
Sam Adams
As I last wrote, Portland’s economy stands to benefit from Ostrava… 
...if only a business deal can be struck.
Let me fill you on in some more pieces of this story so you know exactly what I mean.
The federal ‘Buy America’ Act: transportation projects (like streetcars) supported with federal funding must include at least 60 percent American-made components, and of those components, 60 percent of their subcomponents also must be made in the U.S.
Small Starts: At the prodding of U.S. Representative Earl Blumenauer (D-
Portland, Oregon), the federal government is now considering funding the expansion of urban streetcar systems through a process called “Small Starts.” Before, the federal government would only fund the more expensive light rail transit systems.
These two developments require Portland to look for a domestic manufacturer of our streetcars.
Today, there isn’t one.
Enter U.S. Representative Peter DeFazio (D-Springfield, Oregon), with an inspired $4 million federal
Clackamas County-based Oregon Iron Works builds defense equipment. It has never built a streetcar, but it has the potential prowess to do so.
To help Oregon Iron Works, we believe a joint venture with Inekon, the Czech Republic-based company could build the U.S. streetcar prototype.
The prototype opportunity is important because cities across United States soon may be following Portland’s example by building streetcar systems.
To date, more than 80 such cities have sent delegations to Portland to ponder whether our model is replicable in their communities. The current rate of visitation to Portland is one delegation every two weeks.
If streetcars return to America after a 90-year absence from their heyday in the 1920s (Portland once had 119 miles of streetcar lines), a streetcar manufacturing industry could mean new family-wage jobs for our region.
But, the negotiations between Inekon and Oregon Iron Works have stalled.
And, that is what brings me to Ostrava.
Inekon and Oregon Iron Works must strike a deal amongst themselves. 
But, as its first U.S. streetcar buyer—and largest customer—Portland enjoys leverage with Inekon.
I am here to maximize Portland’s leverage with some face-to-face “encouragement.”
Posted by Sam Adams on October 29, 2005
(5) Comments | Permalink | TrackBack (0)
Filed Under Blog, Front Page, Jobs & Economy, Ostrava, Transportation
Comments by site visitors
Sam,
Can we get a little detail on what Inkeon needs from Oregon Iron Works and vice versa?
Posted by: Benjamin Kaplin | Oct 29, 2005 10:51:24 AM
First off, why do we even need Inkeon since Mr Hales brilliancy managed to outsource all of those jobs to the Czech Republic? Perhaps a more direct path may be to drive to OIW and ask them what it would take to build a streetcar? I dont think it takes much acumen to realize that Inkeon doesnt want to give up a penny to America they dont have to.
Which special interest group paid for this trip? Is there a purpose to the trip? I realize taxpayers (who on average make less than half of what you do) are paying your salary while you are there.
Posted by: Steve | Oct 29, 2005 12:09:58 PM
steve the whole point is that no company in the US makes streetcars or has made streetcars for the last 25 years, if they could buy US made they would.
Oregon Iron Works has no experience in building streetcars, that is why they need an experienced streetcar builder to help in the design and that is where Inekon comes in. Boeing built streetcars 25 years ago that were huge lemons because they had no experience in building streetcars.
If your spending millions of dollars for something to be built, wouldnt it make a little sense to check up on them? if you were building a house wouldnt you check on the construction before the house was completed?
Posted by: jon | Oct 30, 2005 10:16:49 AM
Jon - Besides Boeing GE is in the railway business also. In town, here Greenbrier is in the business of building railway eqpt. Out of all of this, we cannot get one of these companies interested in building a light rail vehicle? Is a light rail vehicle that much different than a heavy rail car?
Posted by: Steve | Oct 30, 2005 2:42:51 PM
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Sam,
I don't think a streetcar would be terribly difficult to design. It is basically 100 year old technology with a modern electronic package and Portland has plenty of electronics talent.
Portland also has a rail car manufacturer and a few sample streetcars to serve as a starting point. (to actually copy the existing streetcar would be missing an opportunity to improve it)
Together, these should be all that we need.
Hustle up a local consortium and guarantee a market for the first few prototypes (which shall be flawless before they are declared done and the last payment made) DO NOT PUT ANY PUBLIC MONEY IN THE PROJECT beyond the purchase. Having a local, running streetcar line will be a major advantage to the local company.
Make them cheaper AND better and we will win.
(Of course, Chris should still cough up those cost figures for Portland’s streetcar (in cost per passenger mile) because if the thing is not cost effective, it will eventually die out like the previous generation did.)
Thanks
JK
Posted by: jim karlock | Oct 29, 2005 6:04:08 AM