Farrell Out as Top Tacoma Port Exec

In what is being labeled by the Port of Tacoma governing board as a "transition" of power, port Executive Director Tim Farrell will step down at the end of the year. The decision brings to a close weeks of speculation about Farrell's future at the port, a future brought into question by the recent cancellation of a major container terminal development project at the port.

Farrell called for a closed door meeting two weeks ago to discuss "a transition in power," shortly after Farrell's announcement that a 168-acre container terminal project at Tacoma under development for ocean carrier NYK Line was being cancelled. The reasons for the cancellation of the project– under development for several years and scheduled for completion in 2012– were cited as unforeseen increases in projected costs and a drop in port revenue. Updated estimates of the project predicted a total bill $400 million higher than the $800 million original estimate for the terminal.

NYK and the port subsequently signed a deal that will bring the ocean carrier to an existing terminal at Tacoma by 2012.

A nearly 10-year veteran of the port, Farrell stepped into the top executive slot in 2004. He will leave the port with a nearly $250,000 wage, benefit, and compensation package. The 43-year-old Farrell will also be eligible for a pension from the port when he turns 65.

The commission hopes to have a replacement executive director in place by early next year following a national search.

The port's current Deputy Executive Director John Wolfe will serve as interim executive director during the search period.

Tacoma Port Pulls Plug on New NYK Terminal

After spending more than $190 million on developing a new 168-acre container terminal for Tokyo-based NYK Line, officials at the Port of Tacoma and the shipping line have officially terminated the project.

Port commissioners voted last week to officially scrap the 2007 deal and sign a new deal with NYK that will see the Japanese line use an existing Tacoma facility. In scrapping the old deal, port officials cited a drop in port revenue due to the downturn in the global economy and projections that the final NYK project could cost $400 million more than the original $800 million estimate.

The new deal calls for NYK to begin using the port's existing APM Terminal by July 2012. Maersk previously called at the terminal until the shipping line vacated the facility in May to head to the Port of Seattle.

The 2007 deal called for the port to develop the east side of the Blair Waterway into a new terminal for NYK, after relocating tenant Totem Ocean Trailer Express and constructing road and rail infrastructure.

The port has already spent $35 million in design costs for the Blair Waterway NYK terminal, relocation of Totem to another site and infrastructure development. In addition, the port spent $146 million to acquire property and demolish vacant buildings, $6 million on site remediation and permitting, and $3 million in staff costs.

In the wake of the decision to cancel the original NYK project, Tacoma port commissioners are expected to meet with port executive director Tim Farrell in closed session Thursday to discuss his future with the port.