ICTSI inks deal for 25-year lease to operate Port of Portland

MANILA, Philippines - International Container Terminal Services Inc. (ICTSI) signed yesterday a 25-year lease with the Port of Portland for the container/breakbulk facility at Terminal 6.

Under the terms of the agreement, ICTSI will pay the port $8 million at closing in addition to an annual rent payment of $4.5 million, subject to any increases in the consumer price index.  As terminal volumes increase over time, ICTSI will pay the port additional incremental revenue per container moved.  The Port of Portland will continue to be responsible for providing security services at Terminal 6.

“Improving access and capacity for exporters and importers, and increasing volumes are the priorities of the port and ICTSI. We have the capital and the international connections to make that happen. We have been aware for several years that the Port of Portland and ICTSI had complementary business goals. And, as we have gotten to know the City of Roses, we’ve been looking forward to the possibility of becoming part of this community,” ICTSI senior vice president Marcelo Suarez said.

ICTSI develops, manages and operates container ports and terminals worldwide. The Port of Portland will be ICTSI’s exclusive focus on the US West Coast. Based out of Manila, ICTSI is a leading independent international container terminal operator and has experience operating 18 terminals in 13 countries, including a terminal in Naha, Okinawa, where ICTSI also handles provisions for the United States military. The company has recently concluded agreements to operate and develop container terminals at the Port of Muara in Brunei, the Port of La Plata in Argentina and the Port of Manzanillo in Mexico.

“With expanded global reach, access to private capital and incentive to grow the business here in Portland, we see a bright outlook for local jobs, cargo volumes, and expanded access for regional exporters to ports worldwide. We see this lease agreement as a vote of confidence in our Port and the surrounding region from a growing international operator,” port of Portland executive director Bill Wyatt pointed out.

The Port of Portland has long aimed to connect the region to the national and global marketplace. Many of the port’s key existing customers such as shipping lines, railroads and airlines are located outside of the region or outside of the US and are private sector companies. Every ton of container cargo that comes through the marine terminals generates a local economic impact of $70.

The Port owns four marine terminals, three airports (Portland International, Hillsboro, and Troutdale) and four industrial parks.