The Port of Tacoma Commission has authorized a long-term, re-stated lease with International Transportation Service, Inc. (I.T.S), a major West Coast terminal operator.

The commission approval finalizes an agreement for re-alignment of I.T.S. terminal space in Tacoma, and future expansion of a larger facility to serve anchor customer “K” Line (Japan) and other shipping partners. The re-stated lease for 20 years (with two five-year customer options) was finalized after several months of negotiation between I.T.S. and the Port of Tacoma staff team, led by Brendan Dugan, the port’s senior director of container terminal businesses.

“I.T.S. has been with the Port of Tacoma for more than 20 years, and ‘K’ Line first called here in 1988,” said Port of Tacoma Commission President Clare Petrich. “In many ways, their decision to take a chance on what was then a small port with great ambition has allowed us to grow and develop into one of North America’s leading container ports. We are very pleased that this partnership – and friendship – will continue.”

“‘K’ Line is a high-quality carrier with high-value and time-sensitive cargo,” said Steve Rubin, vice president of Liner Operations for “K” Line America. “The Port of Tacoma is a natural match for our operations.”

John Miller, executive vice president for I.T.S. added, “The Port of Tacoma is forward thinking in terms of their vision and environmental work, and Tacoma enjoys excellent inland transportation connections plus the support of its community. We are excited to continue this partnership.”

In its current configuration on the Blair Waterway, Terminal 3-4 includes approximately 74 acres (30 hectares) and is serviced by the adjacent on-dock North Intermodal Yard. According to the lease, the terminal will be enlarged by 19 acres (8 hectares), bringing the total terminal size to approximately 93 acres (38 hectares). With this expansion, the facility will provide preferential berthing sufficient for two post-panamax vessels.
The facility, to be managed by Husky Terminal & Stevedoring, Inc., will be converted from a straddle carrier to transtainer operation. Before “K” Line occupies the facility in spring 2005, the re-stated lease calls for the port to: re-stripe, re-pave and re-level selected terminal areas, as well as make improvements to fencing and lighting; construct a new exit gate building; construct a new marine management building; convert an existing building to a maintenance facility; complete a 19-acre expansion, including paving, fencing and lighting; and add 100 additional reefer plugs, bringing the terminal total to 580 reefer plugs.