Port of Seattle Lease Keeps Hanjin at Terminal 46 through 2025

A new agreement among the Port of Seattle, Hanjin Shipping and Total Terminals International ensures that Terminal 46 will remain a cargo facility through at least 2015 and perhaps as long as 2025.

"This lease agreement underscores our commitment to remain competitive in the container shipping industry for the long haul," said Port of Seattle Commission President Bob Edwards. "Hanjin is a premier carrier, and we are very happy to know that they will be in our Harbor for at least the next 20 years."

Today's announcement means the lease on the container terminal now will go through 2015 with an option for another 10 years beyond that. Total Terminals International (TTI), a partnership between Hanjin, based in Seoul and Marine Terminals Corporation of San Francisco, is the lessee. TTI also operates terminals for Hanjin in Oakland and Long Beach.

The Port recently made $72 million worth of improvements to Terminal 46 including three new container cranes, pier upgrades, a new 16-lane truck gate, new terminal buildings and additional acreage.

"The improvements increase our container handling capacity and make our operation even more efficient," said James Kwon, President and CEO of TTI. "It's an excellent terminal and we plan to make the most of it."

The lease extension commits the Port to investing up to $3 million in capital improvements at the Terminal by 2010. Some of the $3 million could be reimbursed to the Port by TTI if the terminal handles less than 180,000 containers annually in the years 2010 through 2015.

"The fact that TTI and Hanjin are willing to make a long-term commitment to Seattle shows that our Port is not only competitive but also has capacity to handle the growing Asia trade," said Port of Seattle CEO Mic Dinsmore. "Proximity to interstates 5 and 90 and the Burlington Northern Santa Fe rail yard across the street make Terminal 46 an efficient, effective place to move intermodal cargoes in and out of the country."

"We're happy to be staying and growing in Seattle," said J.H. Ryu, Seattle Regional Manager of Hanjin. "We have long standing ties with the Port, the community and many customers in the Pacific Northwest. We look forward to continued prosperity under the new lease agreement."

Hanjin fist came to Seattle in 1979, beginning with 10 acres of a shared container terminal on Harbor Island. In 1986 Seattle became the site of Hanjin's first exclusive port terminal and has been one of the Port's largest volume carriers ever since.