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Special Report

Portland ending container service raises red flags for smaller ports

By Michael Angell

The planned termination of container service at the Port of Portland , Ore ., should be a cautionary tale for other North American ports , particularly smaller gateways , about the consequences of labor uncertainty and the continued consolidation of liner services at major hubs .

Prior to the April 15 announcement that Portland ’ s Terminal 6 ( T6 ) would cease serving container vessels as of Oct . 1 , 2024 , Portland had been on track to regain a large portion of the volumes it handled prior to a dustup with the International Longshore and Warehouse Union ( ILWU ).

The port ’ s Chief Trade and Economic Development Officer Keith Leavitt said in the April 15 letter addressed to Oregon importers and exporters that the port “ does not have the funding necessary to sustain the operation .”

The port ’ s search for a third-party terminal operator also has not been successful , Leavitt said . Identifying a new operator was a necessary step toward getting an $ 8 million state grant to fund the port through the remainder of 2024 , which the port will not pursue .

“ Fixing the container business isn ’ t going to make the math work .”

Port of Portland

“ I am sorry to say the third-party lease we were pursuing will not go forward at this time ,” Leavitt wrote . “ This was the key to keeping the container business open , as well as the rationale for our funding request with the legislature .”

During a meeting in early April of the port ’ s board of commissioners , Leavitt said the port was looking for a third-party terminal operator to take over T6 , which is forecast to have a $ 13.7 million loss in 2024 following a $ 13.2 million loss in 2023 . The port reported much smaller losses in 2021 and 2022 that it was able to absorb , but with major capital projects pending , including dredging and cleaning the Superfund site along the lower Willamette River , the port authority cannot continue to lose money operating T6 , he said .

www . joc . com May 6 , 2024 | Journal of Commerce 21