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| Formation | August 4, 2015 (2015-08-04) |
|---|---|
| Type | Port authority |
| Headquarters | Tacoma, Washington |
| Coordinates | 47°15′54.7″N122°24′45.8″W / 47.265194°N 122.412722°W /47.265194; -122.412722 |
Region | Puget Sound region |
| Services | Maritime trade |
CEO | John Wolfe |
Parent organization | Port of Seattle,Port of Tacoma |
| Revenue | $195 million (2017) |
| Expenses | $109.1 million (2017) |
| Website | nwseaportalliance.com |
The Northwest Seaport Alliance is aport authority based in thePuget Sound region of theUnited States, comprising the seaports ofSeattle andTacoma inWashington state. The combined port authority is thesixth busiest cargo port in the United States by container volume.
The two seaports, which had been rivals for most of the 20th century but lost ground to nearby ports inBritish Columbia, proposed a merger of marine cargo operations in 2014. Apublic development authority was created in 2015 and approved by theFederal Maritime Commission, resulting in the formation of The Northwest Seaport Alliance on August 4, 2015.
In 1911, theWashington State Legislature authorized the creation of port districts through public referendums. The ports of Seattle and Tacoma were formed separately in 1911 and 1918, respectively, to establish public control of municipal waterfronts. The two ports, located 32 miles (51 km) apart,[1] facilitated exports of the state's natural resources and imports fromAsia, which intensified duringWorld War I at the end of the decade. DuringWorld War II, the ports were used for militaryshipyards and other wartime uses, reverting to civilian trade afterwards.[2]
The rise of cargocontainerization in the 1960s helped offset declining traffic to the Port of Seattle, leading to an $80 million modernization and expansion program begun in 1968.[3] The Port of Tacoma debuted its own cargo container-ready facilities in 1970, and gradually lured away several large shipping lines from Seattle through the 1990s, including Alaska-basedTotem Ocean Trailer Express (1976),SeaLand (1983),Maersk (1985),K Line (1988), andEvergreen Marine (1991).[2][4] The Port of Seattle's largest line,Hyundai Merchant Marine, moved to a new, $65 million terminal in Tacoma in 1996.[5]
By the turn of the 21st century, Tacoma eclipsed Seattle to become the largest port in the state and 7th largest in the nation, but fell behind ports inLos Angeles and nearbyVancouver.[6][7] In 2009, Seattle regained its title as the larger of the ports, but both suffered losses in overall cargo volume and revenue.[8][9] Tacoma lost Maersk to Seattle after Maersk signed a vessel sharing agreement withCMA-CGM in 2009, but three years later attracted an alliance of three major international shippers from Seattle who had comprised 20 percent of cargo for the port.[8]
At a 1985 meeting of the Port Development Task Force of theGreater Seattle Chamber of Commerce, visitingPort Authority of New York and New Jersey executive directorPeter C. Goldmark suggested that the merger of the ports of Seattle and Tacoma would give the region "decades of advantage" over competitors in Southern California.[10] The Port of Tacoma called a merger unnecessary and costly to their city, citing lower costs to expand in Tacoma and scaring off possible operators with higher fees; the Port of Seattle stated they were uninterested in a merger unless they could guarantee an equal partnership with Tacoma.[11]
The two ports met in the late 1990s to discuss collaboration or a potential merger, amid the consolidating of shipping lines (favoring centralizeddistribution centers in fewer ports) and the merging of the state's railroad system intoBNSF Railway.[12] In 2012, Port of Seattle staff estimated that rate competition with Tacoma had reduced cargo revenue by $35 million annually (approximately $70,000 per acre), based on comparisons with thePort of Oakland, which has no competing port in the region.[8] Both ports were supported by taxpayer subsidies by their respective counties and lost revenue as shipping and terminal operators used their rivalry to negotiate lower rates.[13] Both factors led to the Washington State Legislature proposing a merger of the ports of Seattle, Tacoma andEverett in 2008, which stalled after the Port of Tacoma opposed.[13]
Competition for the two ports intensified in the late 2000s and early 2010s, coming primarily from the newVancouver Fraser Port Authority, an amalgamation of three Vancouver-area ports, as well as Los Angeles and theEast Coast (as a result of thePanama Canal expansion project).[14] In 2014, the market share of ports inBritish Columbia tripled and overtook the combined traffic of Seattle and Tacoma for the first time.[15] The port commissions began talks of a merger in early 2014, including an agreement to share rates and other information under federal oversight and an "unusual" joint announcement for the transfer of a local shipping line to Tacoma.[16][17]
On October 7, 2014, the ports of Seattle and Tacoma formally announced their intention to move management of their marine cargo businesses to a joint alliance in March, ending decades of competition, because of increased threats from British Columbia and other ports.[18] A full merger, including the two port commissions, was opposed by Tacoma, who feared that the more populousKing County would have more votes on the combined commission thanPierce County, who were more dependent on the cargo port.[19] In March 2015, the plan was pushed back to August while working on specifics of the alliance, including a decision on whichlegal entity it would fall under.[20] The Washington State Legislature and GovernorJay Inslee approved the creation of a port development authority, similar to Washington's existingpublic development authority designation, in late April.[21]
On June 5, 2015, the two port commissions voted unanimously to merge their marine cargo operations into the alliance, christened "The Northwest Seaport Alliance", pending approval from theFederal Maritime Commission (FMC).[1][22] The FMC approved the planned alliance on July 23, 2015.[23] On August 4, 2015, at theFederal Waycity hall, the two port commissions unanimously approved a formal agreement creating The Northwest Seaport Alliance. Under the agreement, properties from both ports would be placed in a common pool and the operations would be overseen by both elected port commissions. Port of Tacoma CEO John Wolfe was selected to be the alliance's firstchief executive while remaining with Tacoma.[24] The combined port authority became thethird largest cargo port in the United States and by container volume.[25]
On February 29, 2016, the Northwest Seaport Alliance invited theCMA CGMBenjamin Franklin, the largest cargo ship to visit the United States, to dock at the Port of Seattle's Terminal 18. The move was used to test the terminal's capabilities in handling a ship of that size (in the range of 18,000twenty-foot equivalent units, or TEUs) and promote expansion of Terminal 5 into a facility to handle larger ships.[26] In April 2016, the alliance approved $141 million in funding to upgrade piers and cranes at the Port of Tacoma's Husky Terminal.[27]
The alliance celebrated its first anniversary in August 2016 with a new joint operations center and continued growth in traffic, despite a drop in shipping caused by slower growth in Asia.[28] Later that month,Hanjin Shipping, a major operator in Seattle, filed for bankruptcy and was barred from the Port of Seattle over fears of unpaid terminal fees. The bankruptcy sent the global shipping industry into a panic, with several Hanjin ships anchored off the Pacific coast awaiting approval to unload cargo.[29] In December, Hanjin's Terminal 46 in Seattle was sold to an affiliate ofMediterranean Shipping Company for $78 million;[30] the move was opposed by the Port of Seattle, who filed a request to block the sale over a lack of correspondence about the new lease and security deposit.[31]
The Northwest Seaport Alliance is a port development authority created by chapter 53.57 of theRevised Code of Washington.[32] It is governed by the port commissions of Seattle and Tacoma, whose members are elected by the citizens ofKing andPierce counties, respectively, to four-year terms.[33] The alliance is a separate legal entity from the Port of Seattle and Port of Tacoma, for contracting, auditing and reporting purposes.[15]
The Northwest Seaport Alliance budget for 2017 consists of $96.8 million in operating expenses, $93.4 million in revenue, and a separate capital expenses fund of $270.4 million.[34]
The ports of Seattle and Tacoma funded a jointeconomic impact study in 2013 and found that the ports' marine cargo divisions support a combined $138.1 billion in economic activity, equivalent to a third ofWashington state'sgross state product. The ports support more than 48,000 jobs, including 18,900 direct jobs, and produced $379 million in state and local taxes.[35]
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For the year of 2016, the Northwest Seaport Alliance reported its container traffic totaled 3.6 million TEUs, an increase of 2 percent from 2015, and 28 millionmetric tons.[36][37] As of 2023[update], it is the seventh-busiest container port in the United States according toLloyd's List.[38]
The two ports serve 22 international container carriers, as well as 30 other carriers, providing regular service to seaports inEast Asia,Alaska,Hawaii,Central America,Europe,Australia,New Zealand, andMorocco.[39][40] The alliance's top imports include industrial machinery, electronics, vehicles, toys, and furniture; its top exports includeoil seeds and grains, industrial machinery, prepared vegetables and fruits, fish and seafood, edible fruits, and metals.[41]
The Northwest Seaport Alliance has direct rail connections to thePacific Northwest andMidwest regions of the United States, provided byBNSF Railway andUnion Pacific Railroad.[42] The Port of Seattle ownsSeattle–Tacoma International Airport, the region's primary airport for passengers and cargo, located 13 miles (21 km) from Seattle and 18 miles (29 km) from Tacoma.[43][44] The two ports of Seattle and Tacoma are also connected to thestate highway system, includingInterstate 5 between both ports andInterstate 90 in Seattle.[45] TheWashington State Department of Transportation plans to enhance road connections between the two ports and Seattle–Tacoma International Airport through the Puget Sound Gateway Program. Approved in 2015 by the state legislature, the $1.6 billion program will extendState Route 167 to the Port of Tacoma andState Route 509 to Interstate 5, creating a direct freeway connection between the three areas.[46][47]
The Northwest Seaport Alliance owns a total of 1,754 acres (710 ha) of property in King and Pierce counties, including 993 acres (402 ha) from the Port of Tacoma (South Harbor) and 760 acres (310 ha) from the Port of Seattle (North Harbor).[24][45] The two harbors have 10 totalcontainer terminals with 23berths and 47 cranes; there are also 7 non-container terminals used primarily forbreakbulk cargo and automobiles viaroll-on/roll-off ships.[45]
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