Port of Portland Reaches Agreement to Save Container Operations
Months after facing the threat of suspending container operations due to financial losses, the Port of Portland in Oregon has secured a framework agreement for the future management of the state’s only international container terminal. The port, which has been operating at a loss with government financial support, is now on the path to revitalization.
Harbor Industrial, a California-based company that provides stevedore services and port upgrades, is set to take over the long-term operation of Terminal 6 in Portland. This agreement marks a significant turnaround for the port, which has been embroiled in disputes with unions and struggled to attract new operators.
Oregon’s Governor, Tina Kotek, intervened in the situation in May 2024, pledging state aid to bridge the operating budget gap at the port after private operator negotiations fell through. Governor Kotek emphasized the port’s importance to the state’s economy, providing a crucial alternative to trucking goods over long distances for businesses dealing in seafood, animal feed, and building supplies.
Despite challenges such as port congestion and its remote location over 100 miles from the ocean, the Port of Portland remains optimistic about doubling its container volumes with the support of a new commercial operator. Lines like MSC Mediterranean Shipping Company and SM Line have already started services to the port, showing potential for growth.
The framework agreement with Harbor Industrial hinges on Oregon’s commitment to invest $20 million in terminal improvements. The Port Authority expects the finalized terms of the agreement to be solidified over the next six months, paving the way for Harbor Industrial to take over operations in the long term.
To sustain current operations, the port anticipates receiving $5 million from the state to offset operating losses. The port emphasizes the importance of maintaining the container operations, as it supports over 1,500 direct and related industry jobs.
In April 2024, the port authority had announced its intention to suspend container operations by October, sparking protests from the business and political communities. Governor Kotek’s intervention and the subsequent agreement with Harbor Industrial have provided a lifeline to the struggling port.
Terminal 6 boasts berths for five vessels and seven container cranes, including four Panamax cranes. While the port’s main volume comes from RoRo and bulk cargo, the continuation of container operations is crucial for its overall viability and growth.