The Port of Tacoma is abandoning a plan to build an inland rail-truck logistics and distribution center that was aimed at improving freight capacity in the Pacific Northwest.
Citing a weak economy and slumping box traffic, the Washington state port last month put a 745-acre tract south of the port up for sale, giving up on plans for the Maytown property.
The port also faced vocal local opposition to the plan.
The decision came as the Port of Tacoma last month officially opened a piece of the region’s FAST Corridor, a project including a pedestrian overpass aimed at improving the flow of people and freight through the area around the port. The $24.5 million plan, called FAST for Freight Action Strategy for the Everett-Seattle-Tacoma Corridor), replaces an at-grade crossing with the overpass.
The Maytown development was aimed
at providing even greater access to freight railroads and truckers to the port, however, and easing movement throughout the region.
The port purchased the property in 2006 for $21.2 million as part of a joint development agreement with the Port of Olympia. The interlocal agreement was necessary because the Maytown land is in the Olympia port district in Thurston County. Tacoma is in Pierce County.
Tacoma’s port commission decided it would not extend the Maytown agreement with Olympia beyond its June 30 expiration date. The port said conditions have changed in the two years since the purchase.
“While a 2006 Washington State Transportation Commission Rail Study indicates the need for additional rail capacity in the region, the current economic slowdown, a reduction of container imports, and ongoing uncertainty
about the timing and location for mainline railroad capacity investments reduces the immediate need for such a development,” it said.
Port container volume fell 6. 9 percent last year and started 2008 in decline as well, however.
Tacoma said it will immediately begin the process of divesting the Maytown property. Since purchasing the property, it has spent more than $250,000 on environmental cleanup at the site.
“The port is exploring a broad range of options for selling the Maytown property that will enable the port to recoup its investment in the property,” it said. It added it will “entertain all offers on the property,” which is zoned for rural industrial and rural residential development.
The port said it also will work with conservation groups to explore options for selling all or portions of the property for one or more conservation uses in order to recoup its investment.
Richardson Marine and Schaefer Stevedoring will launch an express barge service linking Houston and Brownsville, Texas, early next month.
The dedicated short-sea service will call at Houston and Brownsville every 14 days and accept general, container and breakbulk cargoes.
The service also aims to attract shipments moving through the Mexico trade corridor.
Maersk Line will hike general rates from $200 to $400 per TEU July 1 on exports of containerized and reefer cargo from North America to northern
Europe, the Mediterranean and the Middle East.
The world’s largest container carrier said the rate hikes are needed to cover significant cost increases resulting from “higher-than-normal” export traffic. Exports are up 22 percent as a result of the weak dollar, the Danish-based company said.
Inland waterways specialist Kirby says its earnings will not be hurt by Dow Chemical’s decision to cut back production and shipping.
Kirby confirmed its second quarter and full year guidance despite the Dow actions and the massive flooding along the Mississippi River.
Kirby’s forecast calls for a 23 percent to 32 percent increase in profits over the second quarter last year. The Houston-based company, the country’s largest barge operator, also confirmed its outlook for the full year, which it says includes growth in net profit of between 20 percent and 26 percent increase over 2007.
remain favorable,” said Joe Pyne, president and CEO. “The recent flooding on the Mississippi River System above St. Louis is anticipated to have a minimal impact on our second quarter results.”
Dow’s decision last month sent something of a shock wave through the bulk shipping industry. The chemical manufacturer announced its second large price increase in as many months and said it also would idle some plants and impose transportation surcharges for the first time on its customers.
The flooding across much of the Midwest hit parts of the barge industry but most of Kirby’s operations are south of the hard-hit region.
General cargo at the Port of New Orleans fell 26 percent in the first four months of 2008, and container traffic was nearly flat.
A national decline in steel exports has brought volume near its lowest point since 1991. If the rest of the fiscal year ending June 30 shows similar results the port will have handled less than the 6. 9 million tons of general cargo that passed through 17 years ago.
New Orleans handled 2 million tons of general cargo from January to April, down from 2. 7 million tons during the same period last year. Steel movements at the port dropped nearly 44 percent during the first four months of the year, compared with the same period last year.
The port handled 80,500 TEUs in container traffic the four months, down almost 1 percent compared with last year. Volume has not yet reached pre-Katrina levels.
The port generated $36.6 million in operating revenue in the current fiscal year. At its monthly meeting Thursday, the Dock Board approved a budget with a projected $38.8 million in operating revenue for fiscal 2009.
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