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The Port of Portland is working to keep its container terminal open months after announcing it would shut down operations due to a lack of funding.
While the seaport’s auto and break-bulk cargo operations would have continued anyway, the outlook for its only container terminal changed in May when Gov. Tina Kotek pledged to invest $40 million of state funds to maintain container service. In return, the governor required the port to provide a business plan outlining how it would maintain container service at Terminal 6 (often referred to as T6) and required the port to report progress on operational improvements and volume growth.
The Port of Portland unveiled its draft plan on August 23, saying the investment would not only benefit local businesses but also lead to increased revenue and greater efficiency.
“Ensuring container service remains available to Oregonians and businesses across the region – whether they operate in the seafood, grain or animal feed industries or sell building materials, tires, shoes and toys – will require public and private support,” Port of Portland CEO Curtis Robinhold said in a statement.
Here are some highlights from the port’s plan to keep its container service operational.
Increase the volume at the terminal
According to the plan, the port is obliged to increase cargo volume by 10%.
The port announced that it will double container volume to 120,000 containers over the next five to seven years. These volume increases are necessary to achieve financial sustainability, the port said. Currently, the port processes around 60,000 containers annually.
The Port of Portland outlined four mechanisms available to it for expanding its container business:
- Working with a private terminal operator to market T6 and secure more direct connections
- Maximize T6’s share of the local container market by targeting shippers and increasing quotas for vessels calling at Portland
- Increase the volume intermodal Containers, mainly to and from the Midwest of the USA, are transported through T6
- Ensure stable and continuous container operations for T6 shippers and ensure service reliability and trust through an agreement with a private terminal operator
“Volume is the most critical factor affecting T6’s financial performance. The port recently informed its T6 ocean carriers that T6 needs more containers in addition to the significant rate increases agreed for 2023 to reduce operating losses,” the report said.
In response, several transport companies have already agreed to increase quotas for their ships at the Port of Portland to help increase volume at the container terminal, the port said.
Improve the efficiency of your ship operations
According to the business plan, the port’s goal is to increase efficiency by 2%.
To achieve this, the Port of Portland, in collaboration with the International Longshore and Warehouse Union and Harbor Industrials Services, signed a memorandum of understanding committing to regularly discuss ways to improve terminal efficiency.
The business plan states that all three parties have recently worked on improving the efficiency of container operations. The result:
- Improved vessel productivity, resulting in crane productivity (movements per crane hour) that exceeds previous T6 levels and current West Coast industry levels
- Increased focus on daily recruitment and optimization of device usage
- The change from a 5-day to a 4-day gate in response to reduced volumes
- Increased storage density to improve the proximity of reach stackers to container stacks
- Implementation of planning initiatives to reduce costs
Currently, the Port of Portland serves as the terminal operator for Terminal 6 but is looking for a third-party operator. Previously, the terminal was managed by former operator International Container Terminal Services, commonly known as ICTSI. The port took it over in 2018 and is actively working to build container services.
“The port and industry leaders are working hard on solutions, and the state will need to be a strong partner if we want to keep container service available to the Oregon businesses and workers who depend on it,” Angela Wilhelms, president and CEO of Oregon Business & Industry, said in a statement.
