Port of Portland has decided to halt its container operations in October due to financial challenges, according to several US media.
The major port in Oregon seems to be facing financial difficulties and as an agreement with a third-party operator was not completed, the Port of Portland said it cannot afford to keep the box terminal open past September. Last week, a previously promising third-party operator ended negotiations suddenly, leading the US port to decide the closure of Terminal 6.
“The challenge is that this business model is not financially sustainable for the port,” pointed out Keith Leavitt, chief trade and economic development officer at Port of Portland. “The smaller local market on a river 100 miles from the ocean is challenging and has cost the Port millions of dollars each year.”
The Port of Portland has lost over US$30 million in the last three years, including a projected US$14 million shortfall for this year.
However, the Port of Portland will continue to fund this operation for the next six months to provide transition time, ending container service on 1 October. “We are now focused on partnering with shippers, workers, elected officials and our community to help support ways to get Oregon goods to markets,” said the port in an announcement.
It is important to note that after 1 October, Terminal 6 will remain a working marine shipping terminal, as there is a lot of cargo handled there, including both imported and exported autos and break bulk – large, heavy cargo that requires a lot of space to ship. Both the autos and break bulk businesses will continue normally at the terminal.
“We know that this terminal is a critical statewide asset — it is worthy of further discussions to come up with a financially sustainable business model for container service that has significantly more state funding and investment,” wrote Leavitt in an email to industry stakeholders, adding that “For now, we have run out of financial options and must take this step.”
