The governing board for the Port of Tacoma on Thursday unanimously approved a settlement with NYK Line and NYK-subsidiary Yusen Terminal Tacoma, Inc., over the cancelled Blair Waterway NYK container terminal.
The board gave approval to port CEO John Wolfe to sign a previously negotiated release and settlement agreement between the three parties. Under the terms of the agreement, the port will pay YTTI $2 million and YTTI will pay the port $7.75 million.
The agreement states that the payments, "are agreed to represent a compromise and settlement of doubtful and disputed claims and shall not be construed as an admission of liability, which is hereby expressly disclaimed, on the part of [the port] or any of the YTTI Parties (YTTI and NYK)."
The settlement grew out of a 2007 agreement that 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.
In October 2009, after spending more than $190 million on the project, the port and NYK cancelled the terminal development. The reasons for the cancellation of the project – at the time scheduled for completion in 2012 – were cited as unforeseen increases in projected costs and a drop in port revenue. Updated estimates of the project in late 2009 predicted a total bill $400 million higher than the $800 million original estimate for the terminal.
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.
A new deal was signed with NYK in late 2009 that 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, 2009, to head to the Port of Seattle.
The collapse of the deal also led to the departure of then port executive director Tim Farrell after serving in the top executive role at the port for five years.
The $2 million payout to YTTI in the settlement approved Thursday is to cove the return of an "Excusive Negotiation Fee" to YTTI.
The $7.75 million settlement payout to the port "represented the amount expended by the port," for design work, "that was directly related to the YTTI terminal premises."
According to the port, the settlement will cause no profit and loss statement impact to the port in 2011 because the settlement expense was recognized in the port books for 2010. The settlement will cause the port's on-hand cash to rise by $5.75 million.
Showing posts with label port development. Show all posts
Showing posts with label port development. Show all posts
Friday, May 27, 2011
Thursday, January 13, 2011
Portland Port Approves $4.4 Billion Wish List of Capital Projects
The governing board for the Port of Portland on Wednesday approved a $4.4 billion list of 99 infrastructure and environmental projects that port officials believe are necessary to address current and future port development and facility access.
The Port Transportation Improvement Plan, or PTIP, is dominated by the $3 billion Columbia River Crossing project, but also contains another 98 projects with a cumulative price tag of $1.4 billion that cover road, rail, transit, marine, environmental, aviation and waterway improvements in the port region.
The PTIP list, which is updated each year as projects move up or down in priority or are completed or abandoned, must now be submitted under state law to the Metro and the Oregon Department of Transportation.
According to the port, "Some of the projects in the PTIP are primarily the port’s responsibility; others are critical for port customers’ market access on systems owned and operated by others." Port officials also pointed out that the projects on systems owned and operated by other governments or private rail carriers are "primarily the responsibility of those entities but, due to competing priorities and capital constraints, they require some amount of port focus and/or financial participation to create the impetus for the responsible entity to pursue the project."
Port staff have identified 58 projects on the PTIP list that may require some port resources, outside grant funding, and/or commitments from the various responsible agencies to move the projects forward. According to the port, "These projects represent the most pressing bottlenecks and capital needs for port customers."
The Oregonian reports that the port's highest priorities are, "improvement to the Interstate 205 northbound on-ramp, construction of additional through lane and left-turn lane at Northeast 82nd Avenue and Columbia Boulevard, and improvements to the Troutdale interchange on Interstate 84."
The Port Transportation Improvement Plan, or PTIP, is dominated by the $3 billion Columbia River Crossing project, but also contains another 98 projects with a cumulative price tag of $1.4 billion that cover road, rail, transit, marine, environmental, aviation and waterway improvements in the port region.
The PTIP list, which is updated each year as projects move up or down in priority or are completed or abandoned, must now be submitted under state law to the Metro and the Oregon Department of Transportation.
According to the port, "Some of the projects in the PTIP are primarily the port’s responsibility; others are critical for port customers’ market access on systems owned and operated by others." Port officials also pointed out that the projects on systems owned and operated by other governments or private rail carriers are "primarily the responsibility of those entities but, due to competing priorities and capital constraints, they require some amount of port focus and/or financial participation to create the impetus for the responsible entity to pursue the project."
Port staff have identified 58 projects on the PTIP list that may require some port resources, outside grant funding, and/or commitments from the various responsible agencies to move the projects forward. According to the port, "These projects represent the most pressing bottlenecks and capital needs for port customers."
The Oregonian reports that the port's highest priorities are, "improvement to the Interstate 205 northbound on-ramp, construction of additional through lane and left-turn lane at Northeast 82nd Avenue and Columbia Boulevard, and improvements to the Troutdale interchange on Interstate 84."
Thursday, October 29, 2009
Vancouver USA Port Approves New Rail Construction Contract
Commissioners for the Washington State Port of Vancouver on Tuesday approved a $14.2 million contract for the construction of a new rail loop at the port's under-development Terminal 5.
Vancouver, Washington-based contracting firm Rotschy Inc. beat out four other bidders to win the contract which calls for the construction of the rail line as part of the $137 million West Vancouver Freight Access project.
The rail loop, when completed, will encircle 1.8 miles of the former Alcoa-Evergreen aluminum facility property at the port that is being redeveloped. Work is expected to start on the rail loop next month with a scheduled completion date of mid-June, 2009.
The West Vancouver Freight Access project envisions the creation of a state-of-the-art unit train facility at the port– expanding the port's dedicated rail facilities from 18 miles of track to more than 43 miles– providing significant unit train improvements and marked capacity improvements to Pacific Northwest mainline tracks. The port estimates that once the project is completed, port rail traffic could increase from 57,000 rail cars a day to 160,000 rail cars a day.
Class I rail carrier BNSF currently handles all rail services inside the port property, and delivers approximately 20 percent of port traffic for further handling by Union Pacific.
Estimates also predict that when the project is complete the new facility will result in the creation of 1,900 local jobs, $64 million in direct income annually and approximately $24 million in tax revenue annually for the community.
Vancouver, Washington-based contracting firm Rotschy Inc. beat out four other bidders to win the contract which calls for the construction of the rail line as part of the $137 million West Vancouver Freight Access project.
The rail loop, when completed, will encircle 1.8 miles of the former Alcoa-Evergreen aluminum facility property at the port that is being redeveloped. Work is expected to start on the rail loop next month with a scheduled completion date of mid-June, 2009.
The West Vancouver Freight Access project envisions the creation of a state-of-the-art unit train facility at the port– expanding the port's dedicated rail facilities from 18 miles of track to more than 43 miles– providing significant unit train improvements and marked capacity improvements to Pacific Northwest mainline tracks. The port estimates that once the project is completed, port rail traffic could increase from 57,000 rail cars a day to 160,000 rail cars a day.
Class I rail carrier BNSF currently handles all rail services inside the port property, and delivers approximately 20 percent of port traffic for further handling by Union Pacific.
Estimates also predict that when the project is complete the new facility will result in the creation of 1,900 local jobs, $64 million in direct income annually and approximately $24 million in tax revenue annually for the community.
Thursday, October 22, 2009
New Rules and Deadline for Colonet Port Bidders
The Mexican government's Ministry of Communications and Transport, or SCT, has released revised bidding rules for the West Coat port development proposed to be located at Punta Colonet about 150 miles south of the California/Mexico border.
The new bidding rules allow the participation of "potential bidders" who are not currently listed as part of the bidding team rime but may be consulted during the bidding process.
SCT also set a new deadline of November 3, 2009 for potential bidders to submit packages.
The new bidding rules allow the participation of "potential bidders" who are not currently listed as part of the bidding team rime but may be consulted during the bidding process.
SCT also set a new deadline of November 3, 2009 for potential bidders to submit packages.
The project has undergone several revisions in the past several years, moving from an envisioned megaport that would rival the Long Beach and Los Angeles port complex, to last month's most recent downscaling which now envisions the proposed port as a 1 million TEU per year port.
Several consortiums have expressed interest in the project, which will also see the development of a double-tracked rail line from Punta Colonet to the U.S. southern mainlines.
Thursday, October 15, 2009
Longview Port Approves Repurchase of 35-Acre Parcel
The three-member governing board for the Port of Longview voted to repurchase 35 acres of port-area property for $3.15 million, albeit at a nearly 50 percent mark-up over what it sold the property for three years ago.
The port originally purchased the property for $50,000 an acre in 1996 as part of a larger 120-acre purchase from International Paper.
In 2006 Simpson Timber Co. bought the 35-acres from the port for $62,000 an acre with the intention of building a sawmill on the site. The lumber firm eventually decided not to build the sawmill and instead purchased an existing mill nearby in 2007. The port's repurchase price approved Tuesday figures out to $90,000 an acre, giving Simpson a $1 million profit on the property.
Port economic development officials said they are in talks to bring a new industrial tenant to the repurchased site.
Since 2007 the site had become embroiled in legal action after Simpson sold the property to a third party. A Superior Court Judge eventually rescinded the sale and ordered the property transferred back to Simpson this April, making way for the resale to the port.
The port originally purchased the property for $50,000 an acre in 1996 as part of a larger 120-acre purchase from International Paper.
In 2006 Simpson Timber Co. bought the 35-acres from the port for $62,000 an acre with the intention of building a sawmill on the site. The lumber firm eventually decided not to build the sawmill and instead purchased an existing mill nearby in 2007. The port's repurchase price approved Tuesday figures out to $90,000 an acre, giving Simpson a $1 million profit on the property.
Port economic development officials said they are in talks to bring a new industrial tenant to the repurchased site.
Since 2007 the site had become embroiled in legal action after Simpson sold the property to a third party. A Superior Court Judge eventually rescinded the sale and ordered the property transferred back to Simpson this April, making way for the resale to the port.
