Portland to lease terminal

The Port of Portland has reached a tentative lease agreement with International Container Terminal Services Inc. to operate its container and breakbulk facility at Terminal 6.
If the Port Commission approves the lease at its meeting next week, the global terminal operator based in the Philippines will attempt to generate new services from carriers that now call in Portland as well as seeking to attract lines that do not have a presence at the port.

"We're very excited about this," said Sam Ruda, director of marine and industrial development. "They are taking over a facility that is underutilized," he said.

This marks a significant change for Portland, which is an operating port in the container sector. Portland would join the other major West Coast gateways as a landlord port. Landlord ports lease their container facilities to private sector terminal operators.

Portland last year handled 157,306 loaded 20-foot equivalent units, according to the Pacific Maritime Association. The port through March this year handled 34,415 TEUs, down from 41,903 TEUs in the first three months of 2009.

As a global terminal operator, ICTSI has business relationships not only with trans-Pacific carriers, but also with lines that serve other trade lanes such as South America, Ruda noted.

ICTSI would apply for membership in the Pacific Maritime Association, the employer organization that negotiates and administers waterfront contracts with the International Longshore and Warehouse Union.

In addition to bringing its operating and marketing expertise to Portland, ICTSI could share as an equity partner in expansion of Terminal 6 if warranted by market conditions. The terms of capital involvement are contained in the lease.

Portland began its search for a private sector partner more than two years ago, but suspended the efforts during the deep trade recession of 2009.

The lease will be for 25 years, and the port will retain responsibility for providing security. Complete terms of the contract will be released when it is considered by the commission.

Source: http://www.joc.com