Port of Seattle, SSA sign new lease for Terminal 25

Record cargo volumes at the Port of Seattle are driving demand for more container terminal space in the harbor

Port Commissioners today approved a 15-year lease with Seattle-based SSA, one of the world's largest maritime transportation companies. The lease encompasses 32 acres at Terminal 25 and the southern end of Terminal 30, which are bordered by East Marginal Way South between Holgate and Spokane streets. Port will invest an estimated $15 to $20 million on pavement and pier upgrades, building repairs and improvements, utility upgrades, lighting repair and other modifications needed to make the facility operational. The lease has four five-year options and begins July 1, 2005. SSA will provide three of its own container cranes at Terminal 25.

"Re-commissioning Terminal 25 is necessary in order to handle the cargo volume growth we're experiencing," said Port of Seattle Commission President Paige Miller. "We're glad to see our customers flourishing and helping us provide the jobs and economic benefits we're here to generate."

Preliminary assessments show that returning Terminal 25 to use as a cargo facility will add 284 permanent jobs and $14 million in annual wages and salaries. Terminal upgrades will generate approximately 346 construction jobs. Moving Matson Line from its current location at Terminal 18 to Terminal 25 will make space for additional international container volumes at Terminal 18, which also is leased and operated by SSA. Matson Lines is a domestic carrier that offers service to Hawaii and Guam.

"This is an excellent opportunity to serve our current customers and make room for additional business in our harbor," said Port of Seattle CEO M.R. Dinsmore. "Using our facilities effectively will help us continue to grow and bring the benefits of international and domestic commerce to this region."

Matson and SSA operated at Terminal 25 from the late 1980s until 2002, when they consolidated their activities at the newly expanded Terminal 18. Record container volume growth at the Port of Seattle this year drove the decision to move Matson's operations back to Terminal 25. The facility was first developed as a container Terminal in the early 1970s, when containerization of cargo was still a new phenomenon.

Year-to-date through October the Port of Seattle's container volume is up 14.3 percent. In November the Port exceeded its previous annual record of 1.54 million containers. The year end figure is expected to reach 1.72 million containers.