Northwest Seaport Alliance Managing Members authorize Terminal 5 construction and lease agreements
The Managing Members of The Northwest Seaport Alliance (NWSA) voted to approve lease agreements and authorize construction on the Terminal 5 Modernization Program, readying it to return to use as a premier international container terminal. In addition, an interlocal agreement was approved, allowing the Port of Seattle to use a portion of Terminal 46 for a cruise berth, the company said in its release.
The Terminal 5 investment will result in 6,600 new direct jobs and more than $2 billion in business activity.
Modernizing Terminal 5 allows the NWSA to expand our cargo-handling capabilities and remain competitive in the shipping industry. The terminal must be ready to handle the Ultra Large Container Vessels increasingly calling at West Coast ports: Vessels regularly visiting our gateway have grown in capacity from 4,800 twenty-foot equivalent units (TEUs) in 1997 to 14,000 TEUs today.
To maximize marine cargo efficiency across the Seattle harbor, international cargo will be realigned as the new Terminal 5 takes shape. Details of the lease package approved at today’s meeting include:
The Terminal 5 lease allows SSA Terminals (Seattle Terminals), LLC—a joint venture entity owned by SSA Terminals and Total Investment Limited Sàrl (TIL, parent company of TTI)—to begin operating there once phase one construction is complete in 2021.
The current lease at Terminal 18 will be amended to introduce conditional consent for the lease to be assigned to the new joint venture (SSA Terminals and TIL) and waive a rail yard fee.
The current Terminal 46 lease with TTI will terminate early, allowing international container cargo to be realigned to Terminal 18. This presents the opportunity for Port of Seattle to operate a cruise berth on a portion of the property with breakbulk or project cargo on the remaining, larger section of property.
Matson’s Hawaii service will relocate to the south berth at Terminal 5 while the north berth is under construction, creating additional room at Terminal 30 for international container cargo.
The deal, including future Phase II commitment, represents approximately a half-billion dollars in private and public investment in the region’s economy.
About The Northwest Seaport Alliance
The Northwest Seaport Alliance is a marine cargo operating partnership of the ports of Seattle and Tacoma. Combined, the ports are the fourth-largest container gateway in North America. Regional marine cargo facilities also are a major center for bulk, breakbulk, project/heavy-lift cargoes, automobiles and trucks.