Yang Ming and Port of Tacoma working toward long-term lease of terminal 7-D

Officials from Yang Ming Marine Transport Group and the Port of Tacoma have signed a Memorandum of Understanding (MOU), acknowledging negotiations to work toward a terminal lease agreement at the Port's Terminal 7-D by the close of 2004.

Brendan Dugan, the Port's Senior Director, Container Terminal Businesses, said the MOU "anticipates the success of Yang Ming in Tacoma and provides the Port the ability to meet Yang Ming's future growth requirements."

Located on the Port's 51-foot-deep Sitcum Waterway, Terminal 7-D offers Yang Ming 54 acres adjacent to the Port's North Intermodal Yard. The MOU outlines an option to expand to 76 acres. A final lease agreement will be subject to the approval of both Yang Ming management and the Port of Tacoma Commission by the end of 2004.

Port of Tacoma Acting Executive Director Timothy J. Farrell spoke to an audience of Yang Ming executives, elected officials and Port staff, noting Yang Ming's philosophy of 'teamwork, innovation, honesty and pragmatism.' "That philosophy is very consistent with that of the Port of Tacoma, which emphasizes customer service, fiscal responsibility, a dedicated and productive workforce, economic growth for our region and responsiveness to business opportunities and challenges."

Through vessel-sharing agreements with long-time Port customer "K" Line, Farrell noted that Yang Ming has operated through the Port of Tacoma since 1996. "Yang Ming officials have taken note of how the Port of Tacoma values relationships and the premium we place on the success of our customers," Farrell said. "With their own Tacoma terminal on deep water, Yang Ming will now realize the benefits of Tacoma's extensive and uncongested rail and highway transportation system, productive labor and a surrounding community that is supportive of the maritime industry."

To work through the details of the terminal's operations and lease agreement, Yang Ming and Port officials expect continued talks throughout the fall. If approved by Yang Ming and the Port of Tacoma Commission, Port officials anticipate that Yang Ming will occupy the terminal by mid-2005.

International Transportation Service, Inc. (I.T.S), a member of the "K" Line Group, currently leases terminal 7-D from the Port. I.T.S. recently signed a re-stated lease with the Port of Tacoma to expand its operation onto Terminal 3 / Terminal 4 on the Blair Waterway. The Port expects to complete this re-alignment by the spring of 2005.