The Port of Portland, backed by a coalition of stakeholders dedicated to marine container shipping in Oregon, delivered Gov. Tina Kotek a comprehensive business plan outlining how to maintain container service at Terminal 6, the state’s only international container terminal.
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.
“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.”
Gov. Kotek requested the business plan following her pledge to provide financial support to maintain container service, which the Port has subsidized 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 labor representatives.
“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.”
Key takeaways from the report include:
- Marine container service is a critical piece of the region’s economy, from the 1,500 family-wage jobs it creates to the $20 million in state and local tax revenue it generates each year.
- To protect these benefits, the Port of Portland has sustained financial losses due to factors outside of its control – but it cannot continue to do so without a significant investment from the state.
- Sustaining and growing Oregon’s ocean container service requires financial support from the state and cost efficiencies from partners in the shipping industry.
Economic Impacts Reach Oregon-Wide
“The importance of the Port of Portland’s Terminal 6 to the state of Oregon and all of its citizens must not be undervalued,” said Stu Follen, whose company, SL Follen Co., exports hay and feed from farms across Oregon and throughout the Northwest, as well as Oregon and Washington onions and potatoes, to Asia. “There’s a ripple effect extending from our company and our employees to the state’s many farms and processors, and to their employees and families. It’s important not only for our and others’ businesses, but for everyone. The flow of imports and exports is critical to our everyday lives.”
State Partnership Needed
To reduce financial losses, the Port has negotiated new rates with the container shipping companies serving T6 and has negotiated labor 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.
“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.”
Governor's Pledge To Support
Governor 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.
To read the full T6 report, please click here.