SEATTLE: The Port of Tacoma and the Port of Seattle have revealed a final draft agreement ahead of the proposed ‘Northwest Seaport Alliance’.
The agreement will combine the two ports’ marine cargo terminal investments, operations, planning and marketing in order to strengthen competition of the Puget Sound gateway and attract higher volumes of traffic.
Don Johnson, commission president at the Port of Tacoma commission, said: “We intend to make our organisations stronger and more sustainable to better serve our customers, grow our regional economy and address unprecedented competition facing the shipping industry.”
The agreement outlines the alliance’s governance charter, management and financial structures, a transition plan and a business development strategy.
The alliance has received some controversial feedback and Don Meyer, a port commissioner at Tacoma has expressed doubts over the agreement citing Seattle’s troubled international shipping sector as cause for concern.
The ports will remain separate organisations, retaining ownership of their respective assets, however they will form a port development authority (PDA), to manage the container, breakbulk, auto and some bulk terminals at the ports.
John Wolfe, current Port of Tacoma CEO is the front runner to become the CEO of the alliance following the Federal Maritime Commission’s (FMC) approval of the agreement.
Meyer fears the revenue sharing between the healthy terminals in Tacoma and the troubled terminals in Seattle could affect Tacoma’s bottom line and its critical bond rating.
There is also concern that the Port of Tacoma is unequally lending its most qualified and talented maritime staff to help run the alliance.
A poorer economic performance for Tacoma could push Tacoma port commissioners to consider raising port property taxes. The Port of Tacoma now collects some US$13m a year in property taxes meanwhile the Port of Seattle collects about US$70m in King County.
