Port of Seattle sets cargo record, prepares for growth

A record 1.8 million container TEUs (twenty-foot equivalent units) moved through the Port of Seattle in 2004 - a 20 percent increase over 2003 - as Seattle remained the Pacific Northwest's leading gateway for international trade.

"The cargo growth proves the Port is moving in the right direction and making the right investments," said Port of Seattle Commission President Bob Edwards. "We'll continue to work with our partners in labor and the private sector on projects that will help us continue to grow and maximize the economic benefits trade brings to this region."

The strong surge in container volumes is due to three primary factors: growth in trade with China, now Seattle's top trading partner; an increase in the number of import distribution centers in the Puget Sound area, and the shipping-terminal expansion projects the Port initiated in the 1990s.

"The Port of Seattle was an early leader in establishing trade relationships with China. We have nurtured and strengthened those relationships over the last 25 years, which is a key reason for the recent increase in shipping activity," said Commissioner Paige Miller, who chaired the Commission in 2004.

Edwards said the expansion of the Port's three main container terminals over the past 10 years was critical to bringing more cargo and trade to Seattle's harbor.

"In the 1990s, the Port made the wise investments to expand our marine terminals and improve the roads and rail systems that serve the harbor," Edwards said. "The Port of Seattle was perfectly positioned to capture the explosive growth in trade."

A economic impact study released by the Port in 2004 showed that in 2003, before the major volume increases of 2004, marine cargo activities at the Port generated 18,200 jobs, more than $1 billion in payroll, $1.4 billion in business revenue, $252 million in local purchases and $104.5 million in state and local tax revenues.

More cargo also is being directed to the region as major importers such as Home Depot, Target and others open import distribution centers in the Puget Sound area.

"We're taking critical steps to prepare for additional cargo growth over the next few years," said Port of Seattle CEO Mic Dinsmore. "We plan to invest $20 million to upgrade Terminal 25 and re-open that facility in mid-2005."

Seattle-based terminal operator SSAT will lease Terminal 25 to serve Matson Lines, a container carrier that calls in Hawaii and Guam. Matson's move to Terminal 25, from its current location at Terminal 18, will allow the latter facility to continue to grow.

"The expansion projects we've completed over the past decade give us and our customers the flexibility to grow through operational adjustments as well as through increases in acreage," Dinsmore said.

SSAT plans to bring in new cargo-handling equipment in 2005 that will make their operations more efficient and effective. In 2006, the terminal operator will add four new container cranes to Terminal 18 to increase capacity at that facility.

The Burlington Northern Santa Fe Railway will make improvements to its major rail yard south of downtown that will provide increased container storage and benefit all of the Port's carriers and shippers.

Seattle's longshore workforce, International Longshore Workers Union Local 19, will add more than 200 members to its roles by the end of the year and by mid-year will open a second dispatch hall. The moves will ensure that Seattle has ample qualified longshore labor when and where it is needed.

"The Port and its partners are working to increase our cargo handling capacity to at least 3 million container TEUs annually," Dinsmore said. "The willingness to work together on solutions that benefit everyone sets the Port of Seattle apart and makes it a great place to do business."