The Port of Portland, Oregon, on the US West Coast hopes to be able to make a comeback in containerized shipping in the near future, with Asia firmly in its sights.

“The importance of Asia for us is very difficult to overstate,” said Greg Borossay, senior manager of marine trade and cargo development at the Port of Portland. “For the maritime business, it’s absolutely imperative. About 85% of our maritime business, whether it’s container or bulk or otherwise, is with China, Japan and South Korea. We can’t even begin to think about doing business internationally without thinking about Asia.”

For now though, the port’s container business at its Terminal 6 is on hold. In February 2015, the now-defunct Hanjin Shipping withdrew its Portland call, taking with it about 78% of the terminal’s volume. A few months later, Hapag-Lloyd also pulled out, leaving a relatively small number of calls from Canada’s Westwood Shipping Lines up until this spring.

The suspension is primarily due to an ongoing labour dispute between ICTSI, which signed a 25-year lease to operate the terminal from 2011, and the International Longshore and Warehouse Union.

“Those issues are in the courts now, pending legal resolution,” said Borossay. “We think that once those get resolved within a year or so, we’ll be in a good position to get service back. We hope that will be done by next summer, so that we can then start recruiting within three to six months.”

According to Borossay, one industry that could benefit from direct services is perishable food processing.

“There are certain types of products that can be transported by ocean that aren’t that highly perishable,” he said. “Oregon is famous for dried fruits and nuts, for example. I think that’s going to expand, especially as we see more and more pick-and-pack e-commerce sourcing to smaller and mid-size cities in China.”

Located on the Columbia River, the Port of Portland’s draught is constrained to approximately 42 feet, but it is still capable of handling Panamax vessels of up to 7,000 TEUs.

“The value proposition for an ocean carrier into Portland is pretty strong,” said Borossay. “Carriers that have been in Portland before have always made money. We’re a niche port, but there’s a role for a niche port. We’re a niche port as it relates to Seattle/Tacoma and Vancouver, and we’re a separate market from California.”

One of Portland’s strengths, according to Borossay, is its rail connectivity. Two Class I railroads, operated by BNSF and Union Pacific, connect all of the port’s terminals to the hinterland and the transit time to Chicago, for example, is eight hours quicker than any other port in the Pacific Northwest.

“We think we’re still in the game,” said. “Carriers are driven towards looking for places where they can make money. Although it’s a challenge for us, we’ve been able to show carriers that they do make money when they come to Portland.”

By Jeffrey Lee

Asia Cargo News | Shenzhen