Formation | August 4, 2015 |
---|---|
Type | Port authority |
Headquarters | Tacoma, Washington |
Coordinates | 47°15′54.7″N122°24′45.8″W / 47.265194°N 122.412722°W |
Region | Puget Sound region |
Services | Maritime trade |
CEO | John Wolfe |
Parent organization | Port of Seattle, Port of Tacoma |
Revenue (2017) | $195 million |
Expenses (2017) | $109.1 million |
Website | nwseaportalliance.com |
The Northwest Seaport Alliance is a port authority based in the Puget Sound region of the United States, comprising the seaports of Seattle and Tacoma in Washington state. The combined port authority is the third largest cargo port in the United States and by container volume.
The two seaports, which had been rivals for most of the 20th century but lost ground to nearby ports in British Columbia, proposed a merger of marine cargo operations in 2014. A public development authority was created in 2015 and approved by the Federal Maritime Commission, resulting in the formation of The Northwest Seaport Alliance on August 4, 2015.
In 1911, the Washington State Legislature authorized the creation of port districts through public referendums. The ports of Seattle and Tacoma were formed separately in 1911 and 1918, respectively, to establish public control of municipal waterfronts. The two ports, located 32 miles (51 km) apart, [1] facilitated exports of the state's natural resources and imports from Asia, which intensified during World War I at the end of the decade. During World War II, the ports were used for military shipyards and other wartime uses, reverting to civilian trade afterwards. [2]
The rise of cargo containerization in the 1960s helped offset declining traffic to the Port of Seattle, leading to a $80 million modernization and expansion program begun in 1968. [3] The Port of Tacoma debuted its own cargo container-ready facilities in 1970, and gradually lured away several large shipping lines from Seattle through the 1990s, including Alaska-based Totem Ocean Trailer Express (1976), SeaLand (1983), Maersk (1985), K Line (1988), and Evergreen Marine (1991). [2] [4] The Port of Seattle's largest line, Hyundai Merchant Marine, moved to a new, $65 million terminal in Tacoma in 1996. [5]
By the turn of the 21st century, Tacoma eclipsed Seattle to become the largest port in the state and 7th largest in the nation, but fell behind ports in Los Angeles and nearby Vancouver. [6] [7] In 2009, Seattle regained its title as the larger of the ports, but both suffered losses in overall cargo volume and revenue. [8] [9] Tacoma lost Maersk to Seattle after Maersk signed a vessel sharing agreement with CMA-CGM in 2009, but three years later attracted an alliance of three major international shippers from Seattle who had comprised 20 percent of cargo for the port. [8]
At a 1985 meeting of the Port Development Task Force of the Greater Seattle Chamber of Commerce, visiting Port Authority of New York and New Jersey executive director Peter C. Goldmark suggested that the merger of the ports of Seattle and Tacoma would give the region "decades of advantage" over competitors in Southern California. [10] The Port of Tacoma called a merger unnecessary and costly to their city, citing lower costs to expand in Tacoma and scaring off possible operators with higher fees; the Port of Seattle stated they were uninterested in a merger unless they could guarantee an equal partnership with Tacoma. [11]
The two ports met in the late 1990s to discuss collaboration or a potential merger, amid the consolidating of shipping lines (favoring centralized distribution centers in fewer ports) and the merging of the state's railroad system into BNSF Railway. [12] In 2012, Port of Seattle staff estimated that rate competition with Tacoma had reduced cargo revenue by $35 million annually (approximately $70,000 per acre), based on comparisons with the Port of Oakland, which has no competing port in the region. [8] Both ports were supported by taxpayer subsidies by their respective counties and lost revenue as shipping and terminal operators used their rivalry to negotiate lower rates. [13] Both factors led to the Washington State Legislature proposing a merger of the ports of Seattle, Tacoma and Everett in 2008, which stalled after the Port of Tacoma opposed. [13]
Competition for the two ports intensified in the late 2000s and early 2010s, coming primarily from the new Vancouver Fraser Port Authority, an amalgamation of three Vancouver-area ports, as well as Los Angeles and the East Coast (as a result of the Panama Canal expansion project). [14] In 2014, the market share of ports in British Columbia tripled and overtook the combined traffic of Seattle and Tacoma for the first time. [15] The port commissions began talks of a merger in early 2014, including an agreement to share rates and other information under federal oversight and an "unusual" joint announcement for the transfer of a local shipping line to Tacoma. [16] [17]
On October 7, 2014, the ports of Seattle and Tacoma formally announced their intention to move management of their marine cargo businesses to a joint alliance in March, ending decades of competition, because of increased threats from British Columbia and other ports. [18] A full merger, including the two port commissions, was opposed by Tacoma, who feared that the more populous King County would have more votes on the combined commission than Pierce County, who were more dependent on the cargo port. [19] In March 2015, the plan was pushed back to August while working on specifics of the alliance, including a decision on which legal entity it would fall under. [20] The Washington State Legislature and Governor Jay Inslee approved the creation of a port development authority, similar to Washington's existing public development authority designation, in late April. [21]
On June 5, 2015, the two port commissions voted unanimously to merge their marine cargo operations into the alliance, christened "The Northwest Seaport Alliance", pending approval from the Federal Maritime Commission (FMC). [1] [22] The FMC approved the planned alliance on July 23, 2015. [23] On August 4, 2015, at the Federal Way city hall, the two port commissions unanimously approved a formal agreement creating The Northwest Seaport Alliance. Under the agreement, properties from both ports would be placed in a common pool and the operations would be overseen by both elected port commissions. Port of Tacoma CEO John Wolfe was selected to be the alliance's first chief executive while remaining with Tacoma. [24] The combined port authority became the third largest cargo port in the United States and by container volume. [25]
On February 29, 2016, The Northwest Seaport Alliance invited the CMA CGM Benjamin Franklin, the largest cargo ship to visit the United States, to dock at the Port of Seattle's Terminal 18. The move was used to test the terminal's capabilities in handling a ship of that size (in the range of 18,000 twenty-foot equivalent units, or TEUs) and promote expansion of Terminal 5 into a facility to handle larger ships. [26] In April 2016, the alliance approved $141 million in funding to upgrade piers and cranes at the Port of Tacoma's Husky Terminal. [27]
The alliance celebrated its first anniversary in August 2016 with a new joint operations center and continued growth in traffic, despite a drop in shipping caused by slower growth in Asia. [28] Later that month, Hanjin Shipping, a major operator in Seattle, filed for bankruptcy and was barred from the Port of Seattle over fears of unpaid terminal fees. The bankruptcy sent the global shipping industry into a panic, with several Hanjin ships anchored off the Pacific coast awaiting approval to unload cargo. [29] In December, Hanjin's Terminal 46 in Seattle was sold to an affiliate of Mediterranean Shipping Company for $78 million; [30] the move was opposed by the Port of Seattle, who filed a request to block the sale over a lack of correspondence about the new lease and security deposit. [31]
The Northwest Seaport Alliance is a port development authority created by chapter 53.57 of the Revised Code of Washington. [32] It is governed by the port commissions of Seattle and Tacoma, whose members are elected by the citizens of King and Pierce counties, respectively, to four-year terms. [33] The alliance is a separate legal entity from the Port of Seattle and Port of Tacoma, for contracting, auditing and reporting purposes. [15]
The Northwest Seaport Alliance budget for 2017 consists of $96.8 million in operating expenses, $93.4 million in revenue, and a separate capital expenses fund of $270.4 million. [34]
The ports of Seattle and Tacoma funded a joint economic impact study in 2013 and found that the ports' marine cargo divisions support a combined $138.1 billion in economic activity, equivalent to a third of Washington state's gross state product. The ports support more than 48,000 jobs, including 18,900 direct jobs, and produced $379 million in state and local taxes. [35]
For the year of 2016, The Northwest Seaport Alliance reported its container traffic totaled 3.6 million TEUs, an increase of 2 percent from 2015, and 28 million metric tons. [36] [37]
The two ports serve 22 international container carriers, as well as 30 other carriers, providing regular service to seaports in East Asia, Alaska, Hawaii, Central America, Europe, Australia, New Zealand, and Morocco. [38] [39] The alliance's top imports include industrial machinery, electronics, vehicles, toys, and furniture; its top exports include oil seeds and grains, industrial machinery, prepared vegetables and fruits, fish and seafood, edible fruits, and metals. [40]
The Northwest Seaport Alliance has direct rail connections to the Pacific Northwest and Midwest regions of the United States, provided by BNSF Railway and Union Pacific Railroad. [41] The Port of Seattle owns Seattle–Tacoma International Airport, the region's primary airport for passengers and cargo, located 13 miles (21 km) from Seattle and 18 miles (29 km) from Tacoma. [42] [43] The two ports of Seattle and Tacoma are also connected to the state highway system, including Interstate 5 between both ports and Interstate 90 in Seattle. [44] The Washington State Department of Transportation plans to enhance road connections between the two ports and Seattle–Tacoma International Airport through the Puget Sound Gateway Program. Approved in 2015 by the state legislature, the $1.6 billion program will extend State Route 167 to the Port of Tacoma and State Route 509 to Interstate 5, creating a direct freeway connection between the three areas. [45] [46]
The Northwest Seaport Alliance owns a total of 1,754 acres (710 ha) of property in King and Pierce counties, including 993 acres (402 ha) from the Port of Tacoma (South Harbor) and 760 acres (310 ha) from the Port of Seattle (North Harbor). [24] [44] The two harbors have 10 total container terminals with 23 berths and 47 cranes; there are also 7 non-container terminals used primarily for breakbulk cargo and automobiles via roll-on/roll-off ships. [44]
Seattle–Tacoma International Airport, branded as SEA Airport and also referred to as Sea–Tac, is the primary commercial airport serving the Seattle metropolitan area in the U.S. state of Washington. It is in the city of SeaTac, which was named after the airport's nickname “Sea-Tac”, approximately 14 miles (23 km) south of Downtown Seattle and 18 miles (29 km) north-northeast of Downtown Tacoma. The airport is the busiest in the Pacific Northwest region of North America and is owned by Port of Seattle.
Mitsui O.S.K. Lines is a Japanese transport company headquartered in Toranomon, Minato, Tokyo, Japan. It is one of the largest shipping companies in the world.
The Port of Seattle is a government agency overseeing the seaport of Seattle, Washington, United States as well as Seattle–Tacoma International Airport. With a portfolio of properties ranging from parks and waterfront real estate, to one of the largest airports and container terminals on the West Coast, the Port of Seattle is one of the Pacific Northwest's leading economic engines.
The Port of Oakland is a major container ship facility located in Oakland, California, in the San Francisco Bay. It was the first major port on the Pacific Coast of the United States to build terminals for container ships. As of 2019 it was the sixth busiest container port in the United States, behind Long Beach, Los Angeles, Newark, Port of Seattle-Tacoma, and Savannah,. Development of an intermodal container handling system in 2002 after over a decade of planning and construction positions the Port of Oakland for further expansion of the West Coast freight market share. In 2019 it ranked 8th in the United States in the category of containers.
Northwest Seaport Maritime Heritage Center is a nonprofit organization in Seattle, Washington dedicated to the preservation and interpretation of Puget Sound and Northwest Coast maritime heritage, expressed through educational programs and experiences available to the public aboard its ships. The organization owns three large historic vessels docked at the Historic Ships' Wharf in Seattle's Lake Union Park; the tugboat Arthur Foss (1889), Lightship 83 Swiftsure (1904), and the halibut fishing schooner Tordenskjold (1911). These vessels are used as platforms for a variety of public programs, ranging from tours and festivals to restoration workshops and vocational training.
The Hanjin Group is a South Korean chaebol. The group has various industries covered from transportation and airlines to hotels, tourism, and airport businesses, and one of the largest chaebols in Korea. The group includes Korean Air (KAL), which was acquired by the founder Cho Choong-hoon in 1969, and was the owner of Hanjin Shipping before its bankruptcy. In 2013, Hanjin Group officially switched from cross ownership to a holding company structure with the establishment of Hanjin KAL Corporation. The group is controlled by descendants of Cho Choong-hoon, and many construction chaebols are the major shareholders of Hanjin KAL.
Kandla, now officially Deendayal Port Authority, is a seaport and town in Kutch district of Gujarat state in Western India, near the city of Gandhidham. Located on the Gulf of Kutch, it is one of India's major ports on the west coast. It is about 256 nautical miles southeast of the Port of Karachi in Pakistan and about 430 nautical miles north-northwest of the Port of Mumbai. Kandla Port was constructed in the 1950s as the chief seaport serving western India.
The Port of Portland is the port district responsible for overseeing Portland International Airport, general aviation, and marine activities in the Portland, Oregon metropolitan area in the United States. Originally established in 1891 by the 16th Oregon Legislative Assembly, the current incarnation was created by the 1970 legislature, combining the original Port with the Portland Commission of Public Docks, a city agency dating from 1910.
The Port of Long Beach, administered as the Harbor Department of the City of Long Beach, is a container port in the United States, which adjoins Port of Los Angeles. Acting as a major gateway for US–Asian trade, the port occupies 3,200 acres (13 km2) of land with 25 miles (40 km) of waterfront in the city of Long Beach, California. The Port of Long Beach is located less than two miles (3 km) southwest of Downtown Long Beach and approximately 25 miles (40 km) south of Downtown Los Angeles. The seaport generates approximately US$100 billion per year in trade and employs more than 316,000 people in Southern California. In 2022, the port, together with the adjoining Port of Los Angeles, were considered amongst the world's least efficient ports by the World Bank and IHS Markit citing union protectionism and a lack of automation.
The Port of Boston is a major seaport located in Boston Harbor and adjacent to the City of Boston. It is the largest port in Massachusetts and one of the principal ports on the East Coast of the United States.
Hanjin Shipping Co., Ltd. was a South Korean integrated logistics and container transport company. Hanjin was declared bankrupt by South Korean courts on 17 February 2017. Prior to its liquidation, Hanjin Shipping was South Korea's largest container line and one of the world's top ten container carriers in terms of capacity.
HMM Company Limited, formerly known as Hyundai Merchant Marine, is a South Korean container transportation and shipping company.
The Port of Jacksonville (JAXPORT) is an international trade seaport on the St. Johns River in Jacksonville, Florida. JAXPORT is the largest port by volume in Florida, and the 14th largest container port in the United States. It carries about 18 million short tons of cargo each year and has an annual economic impact of over $31 billion, including 138,500 jobs across the state of Florida related to cargo moving through the port. It handled 1,338,000 containers, and is the second largest handler of vehicles in the United States with 696,500 in 2019.
The Port of Tacoma is an independent seaport located in Tacoma, Washington. The port was created by a vote of Pierce County citizens on November 5, 1918. The Edmore was the first ship to call at the port in 1921. The port's marine cargo operations, among the largest in the United States, was merged with the Port of Seattle's in 2015 to form the Northwest Seaport Alliance.
The Jacksonville Port Authority (JPA) also known by its brand name, JAXPORT, is the independent government agency in Jacksonville, Florida, that owns and operates much of the seaport system at the Port of Jacksonville.
The Puget Sound region is a coastal area of the Pacific Northwest in the U.S. state of Washington, including Puget Sound, the Puget Sound lowlands, and the surrounding region roughly west of the Cascade Range and east of the Olympic Mountains. It is characterized by a complex array of saltwater bays, islands, and peninsulas carved out by prehistoric glaciers.
The International Longshore and Warehouse Union (ILWU) is a labor union which primarily represents dock workers on the West Coast of the United States, Hawaii, and in British Columbia, Canada; on the East Coast, the dominant union is the International Longshoremen's Association. The union was established in 1937 after the 1934 West Coast Waterfront Strike, a three-month-long strike that culminated in a four-day general strike in San Francisco, California, and the Bay Area. It disaffiliated from the AFL–CIO on August 30, 2013.
The Port of Everett is a public seaport authority located on Port Gardner Bay in Everett, Washington, United States. Founded in 1918, it operates a small cargo terminal, a public marina, waterfront real estate, and public recreational lands. The Port of Everett is the third-largest container port in the state of Washington, behind Tacoma and Seattle.
Sam Cho is an American politician and entrepreneur based in Seattle, Washington serving as a commissioner of the Port of Seattle. Prior to serving as a commissioner, he was Founder and CEO of Seven Seas Export, a political appointee in the Obama Administration, and a staffer for a member of the Washington State Senate and United States Congress. Cho was elected to the Seattle Port Commission in 2019, becoming the only minority port commissioner at that time. He took his oath of office in two languages, English and Korean as a tribute to his family's immigrant roots.
COSCO SHIPPING Lines Co., Ltd. is a Chinese international container transportation and shipping company. It is a subsidiary of COSCO Shipping Holdings, and its parent company is China's state-owned COSCO Shipping.