Port Announces Reorganization in Seaport Division

The Port of Seattle's Seaport Division unveiled a new organizational structure today aimed at maintaining the Port's competitiveness by streamlining operations, retaining existing customers, generating new business, and managing resources for new opportunities.

The new structure creates four operational business groups: Harbor Services will provide services and facilities for fishing, commercial and recreational boats at Fishermen's Terminal, the Maritime Industrial Center, Harbor Island Marina, Shilshole Bay Marina and Bell Harbor Marina; Cargo and Cruise Services will focus on large vessel services and terminal facilities, including the passenger cruise and containerized cargo businesses; Business Development will be charged solely with finding new business and new customers for the Seaport; and Property Management will be responsible for leasing the Seaport's diverse commercial and non-maritime real estate holdings.

"These are challenging times for the Seaport," said Port of Seattle Chief Executive Officer M. R. Dinsmore. "Many of our traditional businesses are undergoing tremendous change as shippers and ocean carriers work to reduce costs in a changing global economy."

As Seaport customers have consolidated and combined their operations, some Port facilities have become underutilized and are no longer providing a positive revenue stream. For example, business at the Port's chill facility at Terminal 91 has virtually disappeared as chilled fruit shipments have moved from refrigerated breakbulk vessels into refrigerated containers that move on container ships, giving the Port the opportunity to convert the chill facility into an interim cruise terminal.

The net result of a series of changes in the Seaport's business activities is a 20-percent reduction in revenues ($20 million), which directly correlates to a $10-million reduction in net operating income.

"We think the new structure, and the focus it brings to our organization, will help us improve our financial performance and our long-term competitiveness," Dinsmore said. "The way our customers do business is changing, and we have to change with them."

The restructuring will result in the elimination of 19 professional and managerial positions -- or 16 percent of the professional and managerial staff -- as well as 10 operational positions. Additional reductions in force are expected over the next few months.

The Port of Seattle will continue to work to be a nimble organization that embraces change and adds value to its customers, community and employees.