Some areas of the United States are perfectly crafted for mergers, especially in the areas of transportation and logistics. Dallas-Fort Worth, New York-Newark, Los Angeles-Long Beach and now, the Ports of Seattle-Tacoma, which are known as the Northwest Seaport Alliance. These former rivals have been approved a port alliance by the FMC as they bring their terminal operations and marketing under a single umbrella. This will be the third largest container gateway in the US.
Port officials explain that this is not a merger, but the combination of two separate organizations to expand facilities, dig deeper waterways and develop alongside ever growing ships. Each port will now be able to modernize, combining terminals into larger and more modern service areas. The decision came a week after the state legislature approved a $16.2 billion transportation package and it’s expected to speed up the necessary construction and improvements. Using a single Port Development Authority, the Northwest Seaport Alliance will focus on investments, capacities, and the enrollment/maintenance of new patrons.
“The Pacific Northwest is a key region for inbound and outbound United States cargo, moving cargo not only for the regional trade but also cargo headed to destinations throughout the entire US Midwest. This alliance will help the region remain competitive into the future,” said FMC Chairman Mario Cordero.
It also doesn’t hurt that it’s strategically located close to the California ports that are seemingly endlessly locked in a struggle between drivers and longshoremen and management. Those ports caused huge and almost insurmountable delays in 2014 and the Northwest Seaport Alliance could be a helpful backup port if overflow stops cargo again.
Position:Global congratulates the Alliance on their expansion and looks forward to continuing our strong relationship and watching as they build a much needed secondary West Coast gateway. It is our pleasure to see other options developing so we can continue to give our customers more options, and a better prediction of what will save time and money for our clients and their customers.