The Port of Portland delivered Governor Tina Kotek a comprehensive business plan outlining how to maintain container service at Terminal 6, the state’s only international container terminal.
The Port of Portland was backed by a coalition of stakeholders dedicated to marine container shipping in Oregon.
The report illustrates how essential marine container shipping at T6 is to Oregon businesses , and in its findings, underscores the need for public investment to keep container shipping in service while the port continues seeking a third-party operator.
Gov. Kotek requested the business plan following her pledge to provide financial support to maintain container service, which the port has subsidised despite significant financial losses over many years.
The report is strongly supported by an advisory council of industry experts and stakeholders, including small and large importers and exporters such as Kroger and Columbia Sportswear, along with labour representatives.
“Making sure container service remains available for Oregonians and businesses across the region – whether they’re in the seafood, grain or animal feed industry, or sell building supplies, tires, shoes and toys – will require public and private support,” Port of Portland Executive Director Curtis Robinhold said.
“This is a critical piece of Oregon’s economy, and it urgently needs financial assistance from the state to continue to serve shippers across all of Oregon.”
“Container service provides hundreds of local jobs, along with many more in connected industries and communities,” said Leal Sundet, secretary of International Longshore and Warehouse Union Local 8, whose membership includes most of the terminal’s workers.
“The people who work these jobs spend their money locally, and they’re supporting shippers and industries from all over the state. Container service is the lifeblood of the region – it drives the economy.”
To reduce financial losses, the port has negotiated new rates with the container shipping companies serving T6 and has negotiated labour efficiencies with ILWU and fee reductions with Harbor Industrial, the terminal’s stevedore for container operations.
It is also working with its advisory council to map out additional solutions, from building new shipper marketing strategies to business initiatives aimed at doubling container volumes over the next five to seven years.
Both short- and long-term investments from the state would reduce the financial loss facing the port in the next year, enabling the port to continue working toward operational stability.
Gov. Kotek has proposed a $40 million state investment to allow container service to continue at Terminal 6, including $5 million in operational support from the Joint Emergency Board during its September meeting, and $35 million in her recommended 2025-27 budget toward capital improvements for container operations and channel maintenance costs in the lower Columbia River.
The funding must be approved by legislators in September and during the 2025 Legislative Session.
“Container operations are good for Oregon businesses and good for everyone in the state, contributing an estimated $20 million in state and local tax revenue each year,” said Angela Wilhelms, president and CEO of Oregon Business & Industry (OBI).
“The port and industry leaders are working hard on solutions, and the state will need to be a strong partner if we want container service to remain for the Oregon businesses and workers who depend on it.”
Earlier this month, strike mobilisation efforts became increasingly likely after the International Longshore Association (ILA) announced that it plans to present final contract demands during an in-house meeting set for early September.
