The Port of Portland on Thursday officially opened Oregon Container Terminal (OCT), amid hopes that the latest private management agreement will help revive the former Terminal 6 as a competitive option for shippers in Oregon, southwest Washington and Idaho.
“Global connections like these give Oregon a competitive edge and help secure our economic future,” said Oregon Gov. Tina Kotek, at the launch ceremony. “They ensure that cranberries grown along the coast, hay harvested in the Willamette Valley, wheat from Eastern Oregon and products made in the Portland metro area can reach global markets efficiently, competitively and sustainably.”
Kotek has been involved in a years-long effort to revitalize the moribund terminal. Opened in the 1970s, T-6 has seen a decade of instability that led Oregon shippers to truck their shipments to ports in Washington state for their ocean needs. Only about a third of Oregon-originating container freight moves through Portland.
In 2019 the terminal was at the center of a legal battle that saw former operator ICTSI awarded $93.6 million after workers with the International Longshore and Warehouse Union engaged in illegal slowdowns and stoppages.
More recently, the terminal has struggled among a long-term changing market environment. Portland and other secondary West Coast hubs have seen the compounding effects of the U.S. trade reset that has concentrated cargo in the top import gateways in Southern California, while the western Canadian ports of Vancouver and Prince Rupert have siphoned off growing volumes that can be railed into the U.S. Midwest market.
“OCT is about reliability, growth and partnership,” said Tim McCarthy, president of OCT, at the launch ceremony. “This terminal gives shippers from Oregon and inland locations a stable, efficient and competitive gateway, backed by 210 acres of already developed infrastructure, experienced operators and a skilled workforce with a proven record of productivity.”
“This transition ensures a reliable, cost-effective connection to international markets for Oregon businesses,” Port Executive Director Curtis Robinhold said. “Securing a long-term operator for container service at Terminal 6 means exporters and importers across the state and region can keep moving their goods efficiently, competitively and closer to home while supporting thousands of family-wage jobs and our state’s economy. We’re grateful to Gov. Kotek and state legislators for their efforts to sustain container operations and invest in Oregon’s future.”
McCarthy and Robinhold also praised Oregon State Rep. Shelly Boshart Davis, for helping secure state funding for improvements at the terminal.
Published reports said the state is providing $40 million for the terminal, including $20 for infrastructure improvements.
“This is one of the good outcomes that can be achieved when government, business and labor work together for the benefit of Oregonians,” said Stuart Strader, speaking on behalf of ILWU Local 8.
OCT, Oregon’s only international container gateway, will be operated by Harbor Industrial Services under a long-term lease with the port. The terminal offers direct blue water vessel services via South Korea’s SM Line, and rail connectivity from BNSF (NYSE: BRK-B) and Union Pacific (NYSE: UNP). Future barge services are also planned for inland locations.
Find more articles by Stuart Chirls here.
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