Stevedore Firm to Take Over Oregon’s Only Large Container Terminal

 

Months after threatening to suspend container operations due to mounting financial losses, the Port of Portland (Oregon) has reached a framework agreement for the future management of the state’s only international container terminal. The port is currently being operated by the state with government financial support to cover the continuing losses while they hope to expand the operations.

California-based Harbor Industrial which provides the stevedore services at the port as well as undertaking a broad range of crane and upgrades for ports is set to become the long-term operator of Terminal 6 in Portland. It is a further reversal of the port which had also been involved in a long dispute with the union which ultimately caused the union local to declare bankruptcy while the port blamed the dispute for hindering its ability to grow volumes and attract new operators.

Oregon’s governor stepped into the dispute in May 2024 promising short-term state aid to close a gap in the operating budget of the port after negotiations with a private operator collapsed. Governor Tina Kotek called the port critical to the state’s economy and provides an important alternative to businesses versus trucking goods hundreds of miles. They point out that seafood, animal feed, and building supplies all move through the port.

With port congestion during the surge in volumes after the pandemic, lines including MSC Mediterranean Shipping Company and SM Line started service to Portland. The port however is considered to be remote as it is more than 100 miles from the ocean and the Columbia River has limited depth to accommodate the largest vessels. Despite this, they believe it will be possible to double volumes to support a new commercial operator.

The framework agreement with Harbor Industrial is in part contingent on Oregon proceeding with its promise to invest $20 million toward capital improvements in the terminal. The Port Authority said the agreement sets a timeline and basic terms which will be finalized over the next six months. It anticipates that Harbor Industrial will become the long-term operator.

The port notes that the agreement also assumes it will receive $5 million from the state near term to stem operating losses from the container operations. They highlight the importance of maintaining the operation saying it supports more than 1,500 direct and related industry jobs.

The port authority had announced in April 2024 its intent to suspend container operations as of October which caused protests in the business and political communities. The Governor provided a plan to save the operation.

Terminal 6 has berths for five vessels and seven container cranes, including four Panamax cranes. The bulk of the port’s volume is in RoRo and bulk cargo which would not have been impacted if the container operations did not continue.