ICTSI signs 25-year least to run Portland container terminal

MANILA's International Container Terminal Services Inc (ICTSI) is to operate Port of Portland's Terminal 6 and enlarge its annual capacity of the current 220,000-TEU after signing a 25-year lease with a down payment of US$8 million and committing to an annual rent of $4.5 million.

Port director Bill Wyatt told the Oregonian daily newspaper that the deal with the Philippines company is protection during difficult economic times for the shipping industry, guaranteeing jobs through the container business for longshoremen, warehouse personnel and truckers if it boosts annual capacity to 400,000-TEU as planned.

Despite the port's difficulty attracting new lines due to its location 100 miles short of the sea, Mr Wyatt says ICTSI is a company with global reach and is successful at making niche operations grow and with payment upfront the port can only gain.

"We'll be getting virtually guaranteed positive cash flow for as far as the eye can see," he said of the deal which covers important provisions such as detailing infrastructure upgrade needs and who pays, and agreement from ICTSI not to operate another terminal on the US west coast.

ICTSI also agreed to join with the Pacific Maritime Association employers group which will relieve the port authority of time-consuming contract negotiations with dock workers.

American Association of Port Authorities spokesman Aaron Ellis said the deal is another in a growing trend towards public-private partnerships in the ports industry, which now include Oakland and Baltimore's lease with Ports America.

(Source: www.schednet.com)