ICTSI takes over as Port of Portland Marine Terminal 6 operator [Seaport]
ICTSI Oregon, Inc. has officially taken over operation of the Port of Portland’s Terminal 6, ushering in a new era of management at the Columbia River’s only deep draft container terminal.
Under a 25-year lease to operate Terminal 6 container and breakbulk facilities, the growing global terminal operator is enacting ambitious plans to boost service for both imports and exports while leveraging intermodal rail facilities for movement of boxes to and from inland markets by train. The agreement, approved by the Port Commission in May 2010, will continue to position Portland as an international cargo gateway.
Executive Director Bill Wyatt says he is excited for the potential of this exclusive international partnership: “With expanded global reach, access to private capital, and incentive to grow the business here in Portland, we see a bright outlook for local jobs, cargo volumes, and expanded access for regional exporters to ports worldwide.”
The Port has owned and operated the container facility since the gates first opened in 1974, but the new landlord-tenant relationship officially began. The landlord business model became more common in the past 10 years with the Port being the last major West Coast port authority to make the switch.
Sam Ruda, Director of Marine and Industrial Development at the Port, initiated a strategic review of the Port’s existing operating model four years ago. The commencement of operations over the weekend by ICTSI represents the culmination of this initiative.
ICTSI Oregon, Inc. hired approximately 20 staff to support terminal operations, but the Port retains responsibility for facility security and for some maintenance functions on-site. Under the agreement, ICTSI paid the Port $8 million upon closing the deal coupled with annual lease payments of $4.5 million. As container volumes increase, so too will payments to the Port.
ICTSI is a leading port management company involved in the operations and development of 21 marine terminals and port projects in 15 countries worldwide. Portland marks the company’s first entry into the U.S. market.
Posted at 20:11