Ports of Seattle and Tacoma form Seaport Alliance to offer a full portfolio of service options to customers. Other Puget Sound ports like Longview, Olympia and Everett are working on expanding their service niches with new facilities and customers. Ports of Seattle & Tacoma Container traffic through the ports of Seattle and Tacoma (Seaport Alliance) was down significantly in January and February of this year with TEUs of full international import containers dropping from 101,074 in February 2014 to 81,576 this year and TEUs of full international export containers dropping from 75,466 TEUs in January 2014 to 57,836 and in February 2015 from 74,466 TEUs to 52,160. A labor dispute between the Pacific Maritime Association (PMA) and dockworkers belonging to the International Longshore and Warehouse Union (ILWU) that began in late October and was resolved in late February (without including time taken to get backlog container traffic moving again) was partly the cause of this decline. Tara Mattina, spokesperson for the port of Tacoma said that, while meetings are continuing that will eventually create an alliance between the two ports there have been no major changes. However, job #1 at present is to convince existing customers to remain with the ports and to encourage new business. With the Alliance she said the two ports would be able to “present a full portfolio of options to customers. And, to plan and prioritize where we invest in the infrastructure. “We each have one terminal that needs some upgrades to be ship-ready,” she said. “It really doesn’t make sense for both of us to be investing at the same time without a customer in mind. This will allow us to think a little more regionally and use a broader portfolio of terminals.” Mattina said that customers of both ports were very frustrated with the situation and the ports shared that frustration. “It was difficult to see them suffer. They lost billions of dollars through the nine months. So, we’re committed to regaining that trust and getting them back again,” she said. The impact of the disruption was huge. During the dispute the two ports issued a joint statement reminding the public of the impact the ports have on Washington State saying: “Combined, the ports of Seattle and Tacoma are the third-largest container gateway in North America. A recent analysis performed by Martin Associates estimates that the two ports’ marine cargo operations supported more than 48,000 jobs, which generated nearly $4.3 billion in economic activity in 2013. If the farmers and manufacturers who ship products through the ports of Seattle and Tacoma are factored in, the ports’ activities reach 443,000 jobs overall in Washington State.” (The analysis did not include the impact on jobs beyond Washington State, however it can be assumed the labor dispute affected well over half a million jobs in the Pacific Northwest and beyond.) Regarding the Alliance, Peter McGraw, spokesperson for the Port of Seattle said: “The current estimate is that a draft agreement (to establish an alliance) will go to the public in early May, followed by about a month of public outreach, then a final vote of both port commissions in early June. At that point the agreement would go to the FMC for its 45-day review and approval period. That would place the effective date around mid-July. In the meantime the port recently entered into a two-year lease that will give Shell Oil access to Terminal 5. The lease, with Foss Maritime, will provide the company with a base for drilling equipment being used for drilling in Alaska’s Chukchi Sea. Terminal 5 is also being considered for a modernization program by the port (or Alliance) that would include crane rail strengthening, structural repair to the wharf, fender system replacement, berth deepening, slope stabilization and electrical supply and distribution. Foss has said it will also use a portion of the terminal for assembling modules for an LNG plant proposed for the Port of Prince Rupert as well as a fleet of ships, such as exploration drill rigs, ice breakers, environmental response vessels, tugs and barges used in Alaska. McGraw also told AJOT: “The Port of Seattle is one of the first ports in the nation to participate in the Corps of Engineers’ new, streamlined process for deepening studies (at Terminal 5). Ours is the only Corps navigation study that remains on schedule for completion within the prescribed three-year target. This is significant because traditionally studies at other ports have taken much longer—10 years or more in some cases. “We are currently 30% complete on design, environmental review and permitting activities for the terminal and expect the upgraded terminal to be ready by 2018. “While this work continues, the Port of Seattle signed a lease with Foss Maritime for interim use of Terminal 5 for the next two years. This lease will provide the port with $13 million, and create hundreds of family-wage jobs,” McGraw said. Clearly, the two major ports find themselves sandwiched between two competitive ports in Canada, America’s largest ports of Los Angeles and Long Beach to the South, new ports coming on-stream in Mexico and the upcoming opening of the new, wider, Panama Canal that’s scheduled for early next year. The intense competition and slipping traffic through the two ports recently prompted Don Easterbrook, COO for the port of Tacoma to say at a public meeting of port Commissioners: “It’s a recipe for disaster if we continue to do nothing.” Port of Everett The Port of Everett’s neighbor is Boeing. The Boeing Everett Factory includes an aircraft assembly building located at Paine Field and is said to be the largest building in the world, covering nearly 100 acres; about the size of a decent sized hobby farm. It’s where the international company’s wide body aircraft are assembled – from the 747s to the state-of-the-art 787 Dreamliner. Port dockworkers, therefore, have extensive experience at handling large, heavy and odd sized bulk cargo and this specialized skill has served Everett well over the years. Among the most interesting items to have arrived at the port recently was Cyclops - not the one-eyed giant that built Zeus’ thunderbolt, Hades’ helmet of invisibility - but a five-person submersible that will be constructed at a new 3,600 sq. ft. facility at the port by OceanGate, Inc. In announcing the port’s new tenant Port Commission President Troy McClelland said, “We are so excited to have them as one of our tenants. We have strategically invested in our facilities to create these opportunities for manufacturing and marine businesses. I am looking forward to watching this company grow, and expand their presence at the Port of Everett’s Waterfront Place.” Lisa Lefeber, port spokesperson, told AJOT that OceanGate’s shop is roughly 200 feet from the haul out and have direct water access, which were key requirements, as well as having room to expand the facility. Also, the port recently signed an eight-year lease with All Ocean Sevices that will provide engineering management, project management and consulting services to both the commercial and passenger industry at the port. The owner of All Ocean services, Alfred Favre, said at the signing: “The Port of Everett offers All Ocean Services close proximity to the Port’s international shipping, Craftsman District boatyard and easier access and better visibility for boaters.” The firm’s office was previously located in Seattle. In addition to assembly cargo for Boeing the port is also a major exporter of agricultural equipment made in the U.S. Midwest and its customs district is the largest in Washington State with $22.7 billion in cargo in 2013, said Lefeber. Early this year also saw its first shipment of logs leave the port for Matsunaga, Japan; the first such shipment in a decade. The return of log shipping to the port was the result of an initiative carried out by the port and Forest Marketing Enterprises Inc. (FORMARK). The President of FORMARK, Eric Warren said in a news release: “After being absent from the Japanese market for 10 years, we are hopeful that we have planted a seed that will grow into a good opportunity not only for us, but for the suppliers, labor force and the Port.” Lefeber also said that to further support the port’s reputation as a dimensional and high and heavy load handler in March of this year it purchased a new 150-ton GHMK 7608 mobile harbor crane for $5.1 million to be used in handling over-dimensional cargoes and heavylift projects – and, when working together with the port’s existing mobile cranes, dock crews now have a 250 MT lift capacity. To support heavyweight projects, the Port’s also constructing a heavy lift pad at the South Terminal. The pad is scheduled for completion later this year. Lefeber said that while the strike did have some impact on the port they were able to meet customer needs and come in with a record performance for 2014. And, this year appears as though it may be another record breaker. Port of Olympia The port has received a 2005 Gottwald mobile harbor crane with the capability of performing a variety of heavy lifts from containers, equipment and over-dimensional and heavier cargoes. And, like the gantry cranes before it, it can serve as backup to a ship’s crane in case of failure. The crane is capable of lifting 140 tonnes at 11 meters. “We are already marketing the Port for new lines of business that we were not able to pursue before the addition of this crane,” said Len Faucher, Marine Terminal Director, at the time of the cranes arrival. “A crane is essential equipment for a port.” In addition to the new crane the port is also continuing with harbor dredging that started in 2009. The current dredging, estimated at a cost of about $1 million, is a follow-up project to a maintenance dredging that restored depth levels and removed legacy contamination. The new dredging will remove sediment that has “sloughed from under the pier” since the previous dredging and cap the area with a clean sand cover. Welcoming ceremonies were also arranged for the arrival of the Macaw Arrow on its maiden voyage to Olympia. The Bahamas flagged ship, 210 meters in length and 36 meters in width delivered roughly 7,000 bags of ceramic proppants at the port Kathleen White, spokesperson for the port, told AJOT the port is the largest importer of proppants, sometimes known as frac sand, in the Pacific Northwest and the second largest exporter of logs. Last year the port shipped more than 1,000 rail cars of bagged proppants to oil fields, primarily in North Dakota’s Bakken development, which was a new record. White also said that the port handles steel products, but has no interest in handling crude oil. In addition, she said the port is relocating its port offices, a move that will occur in May and provide more space for moving cargo at the terminal. With a new crane and the additional terminal space created by the removal of the two older cranes and the planned relocation of offices, Faucher said the port is seriously looking for new traffic volumes that would be suitable for the port. “We’ve been very successful with logs, last year doing over 130 million board feet. We moved a total of 39 ships last year, 22 of logs and 11 ships of proppants. But, the big thing now is to decided what else we can do and what other things we should be considering,” he said. “We’re a niche port specializing in breakbulk and commodities, and we’re looking at heavy lift that would be a great addition here at the port. We hear about projects that are being launched in Canada and the United States and we think the Port of Olympia would be a good solution for project cargo.”