Labor Issues Lead to Portland, ICTSI Lease Termination

Oregon’s Port of Portland and ICTSI Oregon have reached an agreement to terminate a 25-year lease agreement to operate the container facility at the port’s Terminal 6 following a number of labor issues.

“Hopefully, this agreement with the port will make it possible for business to return to the terminal more quickly. However, ICTSI Oregon will continue to address the labor issues that gave rise to its decision to enter into this agreement and will pursue its legal claims against the ILWU,” Elvis Ganda, ICTSI Oregon CEO, said.

With the termination ICTSI Oregon will be relieved of its long-term lease obligations effective March 31, 2017, pending approval by the Port Commission.

In exchange, the port will receive USD 11.45 million in compensation to rebuild business, as well as additional container handling equipment, spare parts and tools at the terminal.

“This is the best opportunity to launch a new strategy to restore carrier service for Oregon and Northwest shippers,” Bill Wyatt, port executive director, said. 

“While the global carrier industry continues to undergo rapid change, we now have a new path to redefine our future in this business and launch new strategies to bring the terminal back to life,” Wyatt added.

The port signed the lease with ICTSI Oregon in 2010 to ensure a long-term funding mechanism for Oregon’s only deep draft international container terminal.

The port said it will engage with a broad range of stakeholders including ocean carriers, shippers, railroads, truckers, barge operators, terminal operators and labor to create a new plan to bring business back to the terminal.

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