Port Updates Cost, Timeline for Third Runway

Timeline and cost in a range, depending on litigation and other delays

The Port of Seattle announced new figures today for the planned third runway at Seattle-Tacoma International Airport. An exhaustive review of the project shows that the runway could be in operation by 2008, at a cost of between $1.1 billion and $1.2 billion.

"The third runway is a vital piece of transportation infrastructure for this region, as well as an important investment," said Port of Seattle Commission Chair Patricia Davis. "It's important that we get this project moving because more delays cost more money."

Port of Seattle staff and outside experts reviewed the project, the known and unknown challenges, and the timeline to prepare for the Commission briefing.

"We spent months on this review and are satisfied that we've identified most of the potential sources of cost," said Port CEO M.R. (Mic) Dinsmore. "This work included a peer review by aviation executives from around the country who validated both our timeline and our financials.

"The real unknown that remains is how much additional litigation we will face and what that will mean in terms of delay and mitigation requirements," Dinsmore added. "That's why we've presented this material as a range."

The 2008 opening date is dependent on current litigation being resolved in time for work to resume in the 2004 construction season. Each construction season missed adds a year to the project.

Passage of a bill mandating use of a particular environmental test provided enough certainty to the Port that the new timeline and cost range could be determined.

"We've held off producing a new budget until we had enough information to develop credible data," said Gina Marie Lindsey, managing director of aviation for the Port. "The fill bill gives us enough certainty to at least produce the range, and identify those things that determine where in the range we are likely to end up. Additional delays could put us closer to the $1.2 billion figure."

Lindsey was not surprised that the new cost exceeds $1 billion.

"We were at nearly $800 million in 1999," Lindsey said. "It's easy to see how four years of litigation and uncertainty over environmental requirements could get us where we are today."

The Port sees the runway as a vital transportation project, and a key component of the Port's mission as an economic engine for the Puget Sound Region.

The runway remains necessary despite the current downturn in the aviation industry.

The purpose of the runway is to reduce weather related delays that cost airlines money and negatively affect travelers. Even with the current reduced flight schedule, nearly 20% of flights into Sea-Tac arrive more than 15 minutes behind the published schedule. That translates to additional costs for fuel and crew salaries, and additional flight hours on expensive aircraft.

"It ends up being a money-saver for the airlines," said Lindsey. "For every dollar the airlines pay for the runway, they will save between two and three dollars in delay costs."

"Reducing those delays will save the airlines between $70 and $100 million per year," Lindsey said. "Even the most cash-strapped airline should be able to see that the cost-benefit ratio is clearly in their favor."

The litigation that remains is on three major fronts:

A challenge to the U.S. Army Corps of Engineers permit to fill wetlands, which is scheduled to be heard in federal court in late summer.
A challenge to the fill bill passed in the legislature, which will be reviewed by a Supreme Court Commissioner next month to determine if the entire court should hear the matter.
An appeal of project conditions imposed by the state Pollution Control Hearings Board, which will go directly to the state Supreme Court later in the year. However, those conditions do not affect the 2004 construction season.