China Shipping commits to Seattle
China Shipping Container Lines Co. Ltd (CSCL) has signed a 30 year deal with the US West Coast port of Seattle.
The announcement comes against the background of recent exits by major carriers from Seattle in favor of the neighboring port of Tacoma,
The 30-year agreement to call at Terminal 30, an amalgamation of the former terminals 25, 28 and 30, was signed with the port of Seattle and SSA Terminals.
"It is especially gratifying for a current customer to increase its investment and presence here. We are honored by the confidence they have shown in the Port of Seattle," said Seattle port commission president John Creighton.
Under the new agreement, China Shipping Terminals (US) and SSA Terminals will be equity partners at Terminal 30. One industry player has suggested to Portworld that the equity shares are a key factor for CSCL's renewed commitment.
SSA Terminals is a JV between SSA Marine and Matson Container Lines which will also operate from Terminal 30.
Seattle officials say CSCL's commitment will complement Seattle port's access to Chinese exports since COSCO Container Lines already calls at Terminal 18. CSCL also currently calls at Terminal 18.
“The primary trading country for this port and state is China, so now we have two of the major carriers from China calling the port on a regular basis,” Seattle port commissioner Par Davis was quoted saying.
“This is a great boon for the growth of the Port of Seattle, and the connection with China,” he added.
According to SSA Marine, the port of Seattle will spend $120 million to upgrade Terminal 30 to handle container ships with capacity of up to 8,000 TEUs.
The upgraded facilities are expected to come on-stream by the spring of 2009.
Industry players say CSCL's renewed commitment to Seattle is a much needed boost for the port in light of recent decisions by major carriers to quit Seattle for Tacoma.
Mitsui O.S.K. Lines Ltd. (MOL) decided late last year to move its calls to the port of Tacoma.
The Japanese carrier has been calling there ever since the first container facilities came up in the late 1960s.
MOL's exit from Seattle had followed other departures by K Line and NYK Line (Nippon Yusen Kaisha) for which Tacoma is building a dedicated $300 million terminal.
Seattle port officials were dismayed with NYK Line's exit, saying then that Tacoma had “snatched away” one of Seattle's oldest container shipping customers by agreeing to build a $300 million terminal for NYK Line.
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| China Shipping to own stake in Terminal 30 |
The 30-year agreement to call at Terminal 30, an amalgamation of the former terminals 25, 28 and 30, was signed with the port of Seattle and SSA Terminals.
"It is especially gratifying for a current customer to increase its investment and presence here. We are honored by the confidence they have shown in the Port of Seattle," said Seattle port commission president John Creighton.
Under the new agreement, China Shipping Terminals (US) and SSA Terminals will be equity partners at Terminal 30. One industry player has suggested to Portworld that the equity shares are a key factor for CSCL's renewed commitment.
SSA Terminals is a JV between SSA Marine and Matson Container Lines which will also operate from Terminal 30.
Seattle officials say CSCL's commitment will complement Seattle port's access to Chinese exports since COSCO Container Lines already calls at Terminal 18. CSCL also currently calls at Terminal 18.
“The primary trading country for this port and state is China, so now we have two of the major carriers from China calling the port on a regular basis,” Seattle port commissioner Par Davis was quoted saying.
“This is a great boon for the growth of the Port of Seattle, and the connection with China,” he added.
According to SSA Marine, the port of Seattle will spend $120 million to upgrade Terminal 30 to handle container ships with capacity of up to 8,000 TEUs.
The upgraded facilities are expected to come on-stream by the spring of 2009.
Industry players say CSCL's renewed commitment to Seattle is a much needed boost for the port in light of recent decisions by major carriers to quit Seattle for Tacoma.
Mitsui O.S.K. Lines Ltd. (MOL) decided late last year to move its calls to the port of Tacoma.
The Japanese carrier has been calling there ever since the first container facilities came up in the late 1960s.
MOL's exit from Seattle had followed other departures by K Line and NYK Line (Nippon Yusen Kaisha) for which Tacoma is building a dedicated $300 million terminal.
Seattle port officials were dismayed with NYK Line's exit, saying then that Tacoma had “snatched away” one of Seattle's oldest container shipping customers by agreeing to build a $300 million terminal for NYK Line.
Seattle's new port chief Tay Yoshitani accused Tacoma of “stealing its customers”, but Tacoma's port commission president Dick Marzano said it was better for carriers like MOL and NYK to relocate within Puget Sound than to leave its waters entirely.
Cowan Thant Zin | Tue Apr 22 08:46 GMT 2008