A new long-term operator for Terminal 6, which was in danger of losing cargo container service, was announced by the Port of Portland on Friday.
The sole international container terminal in Oregon, Terminal 6 handles freight for some of the biggest companies in the state, such as Pacific Seafood, Bob’s Red Mill, Jeld-Wen, and Les Schwab Tire Centers.
The ports stated in August that maintaining container operations would require millions of dollars in state support. The revelation came after the Port of Portland announced in April that it will stop handling cargo containers.
According to the provisional agreement made public late Friday, Harbor Industrial, which presently runs the terminal in collaboration with the port, will take over as its long-term operator.
The agreement is predicated on the port receiving $20 million from the state for capital enhancements and $5 million in state support.
Along with state funds for the upkeep of the Columbia River shipping channel, which is utilized by other ports, the funding is part of Governor Tina Kotek’s recommended budget.
In a press release, Kotek stated that numerous companies in Oregon depend on Terminal 6 to transport their products, and Oregon communities depend on the high-caliber jobs it sustains. I plan to push for these funds in the Legislature, and my planned budget reflects my commitment to resources to support the sustainability of container service.
Although a deal’s framework is in place, it is anticipated that it will not be finalized for six months. In the meantime, it is anticipated that operations at the facility will continue.
Port of Portland Executive Director Curtis Robinhold expressed gratitude for Gov. Kotek’s and other elected officials’ ongoing support in securing funding for container operations, as well as the powerful message their dedication sends to Pacific Northwest companies and international shippers regarding the dependability of T6.
When the Port Commission votes on a lease, which should take place next summer, further information will likely be released. The agreement also depends on the governor’s funding suggestions being approved by the state legislature.
Tim McCarthy, the chief operating officer of Harbor Industrial, stated, “Our team is thrilled and grateful for the commitments made by the port and the state leadership.” In order to guarantee a continued, dependable, and effective gateway for Oregon firms, we think this milestone represents a fundamentally beneficial shift in support of Oregon importers and exporters.
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Matthew Kish covers business, notably the banking and sportswear sectors. You can reach him at @matthewkish, [email protected], or 503-221-4386.
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