Port Inks Hanjin to Long-Term Lease

New Lease Amendment Means Larger Terminal, New Cranes and More Cargo Moving Through Seattle Gateway

Hanjin Shipping Company, one of the Port of Seattle's largest customers for more than two decades, has signed a new lease amendment that will keep the shipping giant on Seattle's waterfront for up to 15 years longer and provides them with room to grow.

The new amendment commits Hanjin to a 10-year lease with a one-time lease extension option for an additional five years. Hanjin currently occupies 60 acres at Terminal 46 and will immediately increase its operations to 70 acres, then to 88 acres in 2004. Container cargo volumes are expected to increase as the size of the shipper's terminal grows.

"This is tremendous economic news for the Port and for the community we serve," said Port Commission Chair Clare Nordquist. "Our region's links to international trade -- and Seattle's role as an international business center and gateway -- all have been strengthened by this agreement."

The lease amendment commits the Port to investing approximately $50 million in improvements to T-46, including new truck gates, three new container cranes, yard improvements, and a new administrative building. All of the improvements will help Hanjin increase its cargo handling in Seattle.

"We are excited to be staying in Seattle," said Ole Sweedlund, vice president and deputy managing director for Hanjin Shipping Company. "Our ties with the Port of Seattle and the region have been strong, and we are looking forward to prospering under this new lease amendment."

Port CEO M. R. Dinsmore said the long-term lease with Hanjin underscores Seattle's competitiveness as a gateway port.

"Keeping a growing customer like Hanjin in the highly competitive container shipping business is testament to the Port of Seattle's ability to thrive in this environment," Dinsmore said. "The Port's commitment to improving our region's transportation and business infrastructures will keep us in a leadership role for many years to come."

Hanjin first came to Seattle in 1979, beginning with 10 acres of a shared container terminal on Harbor Island, and in 1986 Seattle was Hanjin's choice for its first dedicated port terminal. Since then, Hanjin has been one of the Port's largest volume shippers.

Steve Sewell, Seaport Managing Director, said a recent citizens' advisory committee studying the Seaport's business practices strongly recommended that the Seaport continued to grow its container terminal business.

"The highest paying jobs on the waterfront are a direct result of the Port's container terminal investments," Sewell said. "Signing Hanjin to a long-term agreement means those jobs will stay here in Seattle and help improve our community's bottom line."

Hanjin's expanded cargo operations means an increase of more than $83.5 million annually in area business revenue, a $13.5 million increase in local purchases, and more than $4.8 million in state and local taxes generated by the increase in cargo traffic through Hanjin's terminal.

Bob Watt, President and Chief Executive Officer of the Greater Seattle Chamber of Commerce, credited the Port and Hanjin for making a deal that makes a solid contribution to the community's bottom line.

"The economic impact of this agreement will be felt throughout the community," Watt said. "Shipping is such an important component to our economy, and I am encouraged to know that this agreement keeps the cargo moving through Seattle."

Sewell noted that improvements to the region's transportation infrastructure, most notably the Freight Action Strategy for the Seattle-Tacoma (FAST) Corridor, will greatly improve Hanjin's operations.

"We have been able to meet Hanjin's needs for growth and can accommodate them well into the future," Sewell said. "Hanjin's terminal is literally across the street from the rail lines, and their operation is already one of the most efficient cargo terminals on the waterfront. We look forward to working with Hanjin to make this good partnership even better."

Hanjin has begun upgrading its fleet of cargo ships sailing into Puget Sound, bringing four newer ships on-line over the next year. The ships, each capable of carrying more than 4,000 standard 20-foot containers (TEUs), are replacing older vessels with 2,600 TEU capacities.

Note to Editors: Download images of the Hanjin terminal at the Port of Seattle at www.ivey.com/Ivey.POSView/. Standard print photographs and Beta b-roll are available by contacting Doug Williams, media officer, Port of Seattle, (206) 728-3091.