Ports of Seattle and Tacoma Unify Cargo Terminal Operations
Dubbed “The Seaport Alliance" by the two port commissions, it will also align cargo terminal investments and operations along with planning and marketing.
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In an unprecedented move strengthen the Puget Sound gateway, the ports of Seattle and Tacoma plan to unify marine cargo terminal management.
Dubbed “The Seaport Alliance” by the two port commissions, it will also align cargo terminal investments and operations along with planning and marketing.
“We must make it clear that this is not a merger,” said Tara Mattina, the Port of Tacoma’s communication director. “The Alliance was created to compete for more cargo on a regional basis.”
Taken together, marine cargo operations at both ports support more than 48,000 jobs across the region and provide a critical gateway for the export of Washington state products to Asia.
One aspect of the deal that remains to be addressed, however, is the impact it will have on dockside labor. No mention of this issue was made in either statement by the ports. For the time being, however, both ports have framed this as a positive move.
“Where we were once rivals, we now intend to be partners,” said Stephanie Bowman, co-President of the Port of Seattle Commission. “Instead of competing against one another, we are combining our strengths to create the strongest maritime gateway in North America. The Seaport Alliance is the result of our shared commitment to maintaining the economic health of our region through a thriving maritime industry.”
The Seaport Alliance is the outgrowth of talks held under the sanction and guidance of the Federal Maritime Commission (FMC), the independent federal agency responsible for regulating the U.S. international ocean transportation system.
Subject to further FMC review and approval, the two port commissions will enter into an Interlocal Agreement (ILA), which is intended to provide the ports with a framework for a period of due diligence to examine business objectives, strategic marine terminal investments, financial returns, performance metrics, organizational structure, communications and public engagement. Following the due diligence period, the two port commissions intend to submit a more detailed agreement for the Seaport Alliance to the FMC by the end of March 2015.
During the due diligence period, John Wolfe, Port of Tacoma CEO, and Kurt Beckett, Port of Seattle Deputy CEO, will co-lead the planning work and coordinate with both port commissions. Commissioners from both ports expect to hold a public meeting next spring to hire Wolfe as the CEO of the Seaport Alliance following the FMC’s approval of the agreement. The two commissions expect to formally adopt and move to submit the ILA to the FMC at a joint public meeting Oct. 14.
About the Author
Patrick Burnson, Executive Editor Mr. Burnson is a widely-published writer and editor specializing in international trade, global logistics, and supply chain management. He is based in San Francisco, where he provides a Pacific Rim perspective on industry trends and forecasts. He may be reached at his downtown office: [email protected].Subscribe to Supply Chain Management Review Magazine!
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