Port of Seattle to Expand Container Handling Capacity

The Port of Seattle Commission today authorized Port staff to begin preliminary work on a new container terminal in the Seattle harbor.

Concurrent with the environmental and design work for the terminal, the Commission also authorized negotiation of a new lease with SSAT to operate the completed facility.

The decision follows the conclusion of the second consecutive year in which the Port of Seattle was North America's fastest growing container port. A total of 2.088 million container TEUs moved through the Port of Seattle in 2005 - an 18 percent increase over 2004.

The initial work could lead to reopening Terminal 30 to cargo ships as early as 2008. If the Port Commission decides to build the new terminal, it would mean moving cruise ships to Terminal 91, near Interbay, by spring of 2008. Initial work on the cruise facility relocation is included in today's Commission action.

Port Commission President Patricia Davis said the growth in world trade, and the Port of Seattle's success at capturing a share of that growth, is the reason the additional cargo space is needed.

"Returning Terminal 30 to use as a container facility and moving cruise ships to Terminal 91 helps us maximize the use of our facilities and accommodate rapid growth in the container business," Davis said.

The new container facility would be located at Terminal 30 between East Marginal Way South and the East Duwamish Waterway. The facility was used as a container terminal until June 2002, when the ocean carriers that previously docked there moved to other Port of Seattle Terminals. It reopened as a cruise facility in May of 2004.

A renovated Terminal 30, when combined with container facilities at terminals 25 and 28, would contain 70 acres for handling cargo and two vessel berths. Terminal 25 reopened in 2005 for the cargo operations of Matson Navigation.

"Seattle has been the fastest growing container port in North America for two consecutive years," Davis said.

The 18 percent increase in containers in 2005 followed a 20 percent increase in 2004. The growth has been fueled not only by increased trade with China, but also by the Port's strategy of making key infrastructure investments over the past decade. In addition, the Northwest ports offer shippers an efficient entry point for their cargo, with access to two mainline railroads.

Increased growth in container shipping is only part of the story.

"Our cruise business has seen explosive growth since it began in 1999," Davis said.

In 2005 cruise passenger volume increased 22 percent to 686,357. The number of cruise ship calls grew by 14 percent to 169. Passenger counts are expected to reach 740,000 in 2006 with 200 ship calls.

Pier 91 would have two vessel berths, a terminal building and parking for passenger vehicles and bus access. The cruise terminal at Pier 66 will remain in operation. In addition, Pier 91 will continue to be used by the Alaskan factory-trawler fleet. The fishing industry and cruise uses for the pier would not compete because the factory trawlers are at sea in the summer months when the cruise ships use the port facility.

"This project will ensure our ability to continue to grow both our container and cruise businesses and retain our position as a leading seaport and airport that is globally competitive," said Port of Seattle CEO Mic Dinsmore.

A full environmental impact statement will be conducted to determine the project's potential effects on air and water quality, traffic, noise and light. If necessary, mitigation of environmental impacts will carried out.

The preliminary cost estimate of the entire project is $90 to $120 million. Port staff will develop a more precise cost estimate as part of the initial work authorized by the Commission. Other tasks in the initial phase of work include: environmental review; permit work; engineering; geotechnical studies; and preparation of specifications and bid documents.

Port staff will return to the Commission for frequent updates on the work and on the lease negotiations.