Portland Port, ICTSI to terminate Lease
ICTSI Oregon, Inc. and the Port of Portland have mutually agreed to terminate a 25-year lease agreement to operate the container facility at the Port’s Terminal 6. The agreement allows ICTSI Oregon to be relieved of its long-term lease obligations effective March 31, 2017, pending approval by the Port Commission. In exchange, the Port will receive $11.45 million in compensation to rebuild business, as well as additional container handling equipment, spare parts and tools at the terminal.
“Small businesses, farmers, agricultural producers, shippers and communities throughout the Columbia River region deserve and need a fully-functioning container terminal,” said ICTSI Oregon CEO Elvis Ganda. “Hopefully, this agreement with the Port will make it possible for business to return to the terminal more quickly. However, ICTSI Oregon will continue to address the labor issues that gave rise to its decision to enter into this agreement and will pursue its legal claims against the ILWU.”
“This is the best opportunity to launch a new strategy to restore carrier service for Oregon and Northwest shippers,” said Bill Wyatt, Port executive director. “While the global carrier industry continues to undergo rapid change, we now have a new path to redefine our future in this business and launch new strategies to bring the terminal back to life.”
Wyatt continued, “I also want to thank Governor Kate Brown for her long-term engagement on shipper solutions. The trade and logistics initiative will be invaluable as we assess future options at Terminal 6, a process in which the Governor will be an integral player.”
The Port signed a lease with ICTSI Oregon in 2010 to ensure a long-term funding mechanism for Oregon’s only deep draft international container terminal. The Port will engage with a broad range of stakeholders including ocean carriers, shippers, railroads, truckers, barge operators, terminal operators and labor to create a new plan to bring business back to the terminal.