CONTAINER business at the Port of Portland might have been granted a stay of execution after Oregon's governor announced last Thursday that she is proposing US$40 million in state funds to allow activities to continue at the port's lone box terminal, known as Terminal 6.
Port officials announced in April that container service at Portland would end in October due to growing financial losses and the inability to find a third-party operator to take over Terminal 6, reports New York's Journal of Commerce.
'After the Port of Portland's April announcement that container service would end this October, I heard from scores of producers throughout oregon that relied on Terminal 6 to ship their goods,' Governor Tina Kotek said in a statement.
'...I am proposing to invest $40 million in state funds to allow container service to continue and communicate my expectations for reliable and sustainable service moving forward.'
It was not immediately clear if Ms Kotek proposing the funding means the port will definitely receive the money and continue container service beyond October. Most of the proposed funding - $35 million - will be part of Ms Kotek's 2025-2027 recommended budget, with the other $5 million to be requested of the state legislature's Emergency Board.
Port officials could not immediately be reached for comment.
Port of Portland executive director Curtis Robinhold said in the statement the port was 'grateful' for the support from Ms Kotek and the 'strong backing from a bipartisan group of (state) legislators.'
'With the support of the Oregon Legislature, container shipping at Terminal 6 will continue, along with the benefits it provides for Oregon businesses and the quality jobs it provides for our community,' Mr Robinhold said.
Terminal 6 is forecast to have a $13.7 million loss in 2024 following a $13.2 million loss in 2023. The losses come as the port has seen a 43 per cent drop in containers handled from July 2023 through February 2024. The port does not release actual container volumes.
Ms Kotek also said she wants the port to provide a progress report on Terminal 6's operations by August 23.
Portland lost container service for about three years from 2015 to 2018 following a decade-long dispute between the International Longshore and Warehouse Union and ICTSI, the terminal operator at the time, which resulted in work slowdowns that crippled productivity. In February, the ILWU agreed to a settlement in which it will pay $20.5 million in damages to ICTSI.
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Port officials announced in April that container service at Portland would end in October due to growing financial losses and the inability to find a third-party operator to take over Terminal 6, reports New York's Journal of Commerce.
'After the Port of Portland's April announcement that container service would end this October, I heard from scores of producers throughout oregon that relied on Terminal 6 to ship their goods,' Governor Tina Kotek said in a statement.
'...I am proposing to invest $40 million in state funds to allow container service to continue and communicate my expectations for reliable and sustainable service moving forward.'
It was not immediately clear if Ms Kotek proposing the funding means the port will definitely receive the money and continue container service beyond October. Most of the proposed funding - $35 million - will be part of Ms Kotek's 2025-2027 recommended budget, with the other $5 million to be requested of the state legislature's Emergency Board.
Port officials could not immediately be reached for comment.
Port of Portland executive director Curtis Robinhold said in the statement the port was 'grateful' for the support from Ms Kotek and the 'strong backing from a bipartisan group of (state) legislators.'
'With the support of the Oregon Legislature, container shipping at Terminal 6 will continue, along with the benefits it provides for Oregon businesses and the quality jobs it provides for our community,' Mr Robinhold said.
Terminal 6 is forecast to have a $13.7 million loss in 2024 following a $13.2 million loss in 2023. The losses come as the port has seen a 43 per cent drop in containers handled from July 2023 through February 2024. The port does not release actual container volumes.
Ms Kotek also said she wants the port to provide a progress report on Terminal 6's operations by August 23.
Portland lost container service for about three years from 2015 to 2018 following a decade-long dispute between the International Longshore and Warehouse Union and ICTSI, the terminal operator at the time, which resulted in work slowdowns that crippled productivity. In February, the ILWU agreed to a settlement in which it will pay $20.5 million in damages to ICTSI.
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