By Karen Robes Meeks
Lease agreements and construction for the Terminal 5 Modernization Program recently received approval from the managing members of The Northwest Seaport Alliance.
The deal sets the stage for Terminal 5’s return as a “premier international container terminal,” according to the alliance.
“The modernization of Terminal 5 represents a transformative investment in our region to support our state’s economy,” said Port of Seattle commission president Stephanie Bowman. “These actions will ensure robust and competitive marine cargo and maritime industrial activities in our harbor for the next 30 years, sustaining and creating family-wage jobs and economic opportunity for the region.”
The agreements call for:
• SSA Terminals to start operations at Terminal 5 after the completion of Phase 1 construction in 2021;
The current lease at Terminal 18 to be changed to allow for the new SSA Terminals-TIL joint venture and waive a rail yard fee;
• The current Terminal 46 lease with TTI to end early, so that international container cargo can be realigned to Terminal 18 and allow the Port of Seattle to run a cruise berth on part of the property (breakbulk or project cargo will take up the rest of the space); and
• Matson’s Hawaii service to move to the south berth at Terminal 5 while construction takes place on the north berth, making more space at Terminal 30 for international container cargo.
The deal will yield 6,600 new direct jobs and over $2 billion in business activity, according to the NWSA.
“Terminal 5 will be able to handle the largest marine cargo vessels now being deployed in the Asia-Pacific trade route quickly and efficiently, providing a critical link for Washington state exports to Asian markets, both for agricultural products such as hay, apples and potatoes, as well containerized cargo for customers such as Paccar and Starbucks,” said Port of Tacoma commission president Clare Petrich.
