The Northwest Seaport Alliance (NWSA) approved lease agreements and authorized construction on the Terminal 5 Modernization Program. NWSA now readies the Terminal to return to use as a premier international container terminal. In addition, an interlocal agreement was also approved, enabling the Port of Seattle to use a portion of Terminal 46 for a cruise berth.
The Terminal 5 investment will lead ton 6,600 new direct jobs and over $2 billion in business activity. Improving Terminal 5 allows the NWSA to expand the cargo-handling capabilities, while the terminal must be ready to handle the Ultra Large Container Vessels increasingly calling at West Coast ports.
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To enhance marine cargo efficiency across the Seattle harbor, international cargo will be realigned as the new Terminal 5 is being built. Details of the lease package include:
- The Terminal 5 lease allows SSA Terminals (Seattle Terminals), LLC—a joint venture entity owned by SSA Terminals and Total Investment Limited Sàrl (TIL, parent company of TTI)—to begin operating there once phase one construction is complete in 2021;
- The current lease at Terminal 18 will be amended to introduce conditional consent for the lease to be assigned to the new joint venture (SSA Terminals and TIL) and waive a rail yard fee;
- The current Terminal 46 lease with TTI will terminate early, allowing international container cargo to be realigned to Terminal 18. This presents the opportunity for Port of Seattle to operate a cruise berth on a portion of the property with breakbulk or project cargo on the remaining, larger section of property;
- Matson’s Hawaii service will relocate to the south berth at Terminal 5 while the north berth is under construction, creating additional room at Terminal 30 for international container cargo.
The deal, including future Phase II commitment, amounts approximately a half-billion dollars in private and public investment in the region’s economy.
Terminal 5 will be able to handle the largest marine cargo vessels now being deployed in the Asia-Pacific trade route quickly and efficiently, providing a critical link for Washington state exports to Asian markets, both for agricultural products such as hay, apples and potatoes, as well containerized cargo for customers such as Paccar and Starbucks
stated Clare Petrich, Port of Tacoma commission president and co-chair of the NWSA.
In addition, the Local 19 longshore union welcomed this development. Specifically, Rich Austin, president of the union said that container cargo transported through this gateway provides tens of thousands of family-wage jobs, benefitting working men and women.
