Tuesday, January 24, 2012

Port of Tacoma Projects 2012 Revenue Increase

The Port of Tacoma’s overall operating budget for 2012 includes projected revenue of $116.3 million, an increase of 3.3 percent over the estimated 2011 operating revenue results.

The revenue increase, according to the port, is driven primarily by improved intermodal lift volumes, contractual increases and minimum payments from container terminal customers, as well as from new leases from property acquisitions made over the past several years.

The port’s 2012 operating income is budgeted at $20.8 million, down from the forecast $22.3 million in 2011. However, net income is projected at $28.6 million, an increase of almost $2 million from last year’s forecast of $26.8 million.

The budget also includes projected volume changes, including:
•    A total tonnage increase of 2.9 percent, from 16.5 million to 17.0 million short tons.
•    A 2.9 percent increase in total 20-foot equivalent container units.
•    An 8.9 percent increase in intermodal lifts.   

“The Port of Tacoma will encounter both market risks and new business opportunities in 2012,” CEO John Wolfe said in announcing the budget. He says Tacoma could pivot strategically once an in-progress analysis is complete by the end of the first quarter.

“The port is in the process of a strategic review that will direct the investments we make in the future and the business models under which we operate,” he said. “Therefore, 2012 will be a year of transition as we implement our new strategies.”

Wolfe also warned that the economic storm that plagued Tacoma in recent years still hasn’t completely blown over.

“We fully expect that the lingering effects of the recent global economic downturn will continue through 2012,” he said. “While we see encouraging signs of recovery and cautious optimism, we believe full recovery is still years away.”