Seattle's Seaport Makes Gains in 2003

Seattle's Seaport registered across-the-board gains in its major business categories in 2003, including passenger cruises to Alaska and the volume of containerized cargo moving through the Port.

Container volume grew by 3 percent to 1,486,465 TEUs (twenty-foot-equivalent units). Export volumes grew by 4.5 percent to 748,021 TEUs and import volumes grew 2 percent to 738,444 TEUs. By region, the strongest growth was in the domestic tradelanes. Alaskan container volumes increased by 13 percent and Hawaiian volumes were up 14 percent.

"Those are good, solid numbers and they demonstrate that the investments we've made in our trade and transportation infrastructure are paying off," said Port of Seattle Commission Chair Paige Miller.

Investments and Expansions

Cargo growth was spurred by ongoing capital improvements that are increasing capacity and improving efficiency at virtually all of the Port's cargo facilities. Major capital projects in 2003 included:
o Terminal 46 - Investment of $71 million to increase the size of the facility from 70 to 88 acres, construct a new truck gate and terminal buildings, reinforce the pier and add three new container cranes (worth $7.8 million each), which were delivered in July. Terminal 46 is leased and operated by Total Terminals International. Hanjin Shipping of South Korea calls at the facility.
o Terminal 18 - Investment of $6 million to add a second truck gate. A major expansion of the terminal was completed in 2002. Terminal 18 is leased and operated by SSA Marine. Fifteen ocean carriers use the facility.
o Terminal 115 - Northland Services, an operator of tug and barge services to Alaska, Hawaii and Russia, consolidated its operations from several other locations and increased its lease acreage from 24 to 70 acres. The Port will invest $2 million to upgrade the facility.

"The investments we're making support the goal of doubling our container volume to three million TEUs in the next 10-15 years," said Port of Seattle CEO M. R. Dinsmore.
"We completed a container terminal access study in 2003 that demonstrated we have the road and rail capacity to handle those kinds of volumes," Dinsmore said. "With a strong commitment from our partners in labor, government and private industry we can achieve that goal and maximize the economic benefits international trade brings to our region."

Volumes at the Port's grain terminal, leased and operated by Louis Dreyfus, increased by 85 percent to 3.1 million metric tons. Strong overseas markets for corn and soybeans fueled the growth.

Customer Service Leader

The service provided by the Port's partners in trade played a critical role in the Port's top rating in customer service by more than 1,200 importers and exporters in a poll conducted by Marine Digest and Cargo News, an international maritime trade publication.

"We thank our carriers, terminal operators, longshore workers, truckers and other transportation service providers for the work they do that earned the Port of Seattle such high praise," Miller said.

Soaring Cruises

Seattle's emergence as a major homeport for passenger cruises to Alaska got a boost in 2003 with the completion of a new, two-berth cruise facility at Terminal 30. The $16 million terminal was built in record time and opened on schedule for the beginning of the cruise season. Terminal 30 hosted two cruise ships every Saturday from early May through late September.

The total number of cruise ship calls at Terminal 30 and Pier 66 (the Port's first cruise terminal) in 2003 was 99 - a 31 percent increase over 2002. Passenger volumes reached 345,000 - a 41 increase over 2003 levels. The projection for 2004 is 140 cruise ship calls and more than 500,000 passengers.

Security Improvements

The Port received more than $39.5 million in federal grants to enhance the security of its facilities and the cargo en-route to the Port.

The Port participated in programs designed to prevent and deter the use of cargo vessels in terrorist activities. Operation Safe Commerce (OSC), a program administered by the Transportation Security Administration, includes nine demonstration projects that test container security technologies and procedures. The Port also played a role in a project called STAR BEST - which demonstrated a model trans-Pacific, end-to-end supply chain security system from the Port of Laem Chabang, Thailand to the Port of Seattle. Both programs are designed to test ways of preventing terrorists from using maritime commerce to carry out acts of terror.

Facility security improvements included reinforcement of utilities, new access control equipment and procedures, and work to enhance emergency response capabilities.

Port Properties

Despite a tough year for the regional real estate market the Port maintained a 94 percent occupancy rate for its non-maritime commercial and industrial properties. Thirty-four leases were renewed and 51 new leases were signed.

The number of vacant industrial acres in the Port's inventory decreased from 180 acres in 2002 to just 85 acres at the end of 2003.

New industrial customers include:
o SCS Refrigerated Services - The cold storage operator signed a 30-year lease for 15 acres at Terminal 25 in August. The company will also lease up to 600 feet of the pier at T-25. SCS will invest $25 to $35 million of its own money to build a 200,000 to 300,000 square cold storage facility that will support the fishing industry and seafood exports.
o City Ice - A long-time port tenant, City Ice agreed in September to lease 88,000 square feet, plus associated space, at Building C-175 on Pier 90. The company will invest $1.5 to $2 million in a warehouse to handle seafood, meat and other products.
o Charlie' Produce - In August the Port reached an agreement to sell two buildings at Terminal 106 to Charlie's Produce, a Seattle-based supplier of food products to grocery stores, restaurants and other businesses.

Supporting Seafood

The Port made progress on a $24.2 million program of upgrades at Fishermen's Terminal in 2003, including phase one of replacement of the South Wall. The remainder of the South Wall will be rebuilt by 2005.

A program to completely rebuild the docks and replace the buildings at Shilshole Bay Marina also was approved by the Port Commission in 2003. The five-year program represents an investment of $80 million.

"Our goal for all seaport properties, from the cargo terminals to our industrial and recreational facilities, is to increase economic opportunity for the people who live in this region," said Dinsmore. "I think our successes in 2003 show that we're on the right track."