Port Commissioner John Creighton said he worries the Port and taxpayers will lose money in the long run. ”Talking is well and good, but I’m concerned that terminal operators are trying to lead us down a certain path” toward restructuring leases in their favor, he said. ”I am concerned because I think any restructuring acceptable to the terminal operators will likely let them off the hook for tens of millions of future lease payment obligations … and only paper over their problems in the short term.”
Faced with continuing decline at its seaport, the Port of Seattle has agreed to discuss restructuring business agreements with the companies that operate its terminals.
It’s the Port’s latest attempt to respond to competition from other West Coast ports and changes in the shipping industry. The Port’s 25-year plan calls for a doubling of its shipping business, but the past five years have placed the seaport in jeopardy as competition and a soft market have driven down business on Seattle’s waterfront.
The three companies that operate Seattle’s seaport proposed the meetings, which require approval by the U.S. Federal Maritime Commission because of antitrust laws.
If they are approved, the Port and terminal operators will sit down and work together on a strategy they hope will keep ships calling on the Port of Seattle. The three operators have long-term leases with the Port of five to 15 years, but if the discussions are approved, almost every aspect of the Port’s business with shippers and terminal operators would be back on the table, including pricing, hours, infrastructure improvement, and which terminals remain in use.