by Lloyd's List
10 December 2024 (Lloyd's List) - PORTLAND’S container terminal has found a long-term operator after months of uncertainty surrounding its future.
Terminal 6, which is Oregon’s only container terminal, has been without a third-party operator since International Container Terminal Services pulled out following a lengthy dispute with the International Longshore and Warehouse Union (the union was ultimately ordered to pay a settlement of $20.5m to ICTS).
The terminal looked bound for closure in April 2024 after registering losses of more than $30m from container operations over the past three years.
Intervention from Governor Tina Kotek, who proposed the state ringfence up to $35m from the governor’s 2025-2027 budget to save the terminal, boosted hopes, but an operator still needed to be found.
But the port said it has reached a framework agreement with Harbor Industrial, which would see it become the long-term operator of the terminal.
Harbor currently acts as stevedore at the terminal and manages the loading and unloading of containers alongside the port authority itself.
The agreement will be solidified over the next six months, the port said, assuming it gets $5m from the state to stem ongoing losses and a further $20m worth of funding for improvements at the terminal.
The Governor’s recommended budget includes this funding, plus cash towards the maintenance of the Columbia River channel.
Port of Portland executive director Curtis Robinhold said the port was “grateful for the continued support of Governor Kotek and other elected leaders to secure funding for container operations, and for the strong signal their commitment sends to international shippers and Pacific Northwest businesses about the reliability of T6”.
“We’re confident that with Harbor on board as a long-term operator, increasing container volumes and adequate state investment to keep marine trade moving, Terminal 6 will continue providing widespread benefits for Oregon for many years to come.”
Governor Kotek reiterated the importance of Terminal 6 to Oregon businesses.
“My recommended budget reflects my commitment to resources to facilitate the continuation of container service, and I intend to advocate for these funds in the Legislature,” she said.
