Oct. 1, 2009

NYK reconfirms commitment to come to the Port of Tacoma in July 2012: Ships will call at APMT facility

A series of three agreements approved by the Port of Tacoma Commission on October 1 highlight a revised plan in which NYK intends for NYK vessels to call in Tacoma starting in July 2012.

Although NYK had planned to come to a proposed new, 168-acre terminal on the Blair Waterway, its ships will instead call at the APM Terminals (APMT) container facility on the Port’s Sitcum Waterway.

“This is a good example of how the shipping industry is working together to make the best utilization of capital investments,” said Tim Farrell, Executive Director of the Port of Tacoma. “In this case, working with the Port of Tacoma, NYK and APMT extended that collaboration to the terminal business.”

The three agreements approved by the Port Commission are:

1. A new agreement that affirms and defines the long-term relationship between the Port and NYK. Under this agreement, NYK commits to bring all NYK independently-operated container vessels bound for the Pacific Northwest to the APMT container facility at our Port. This agreement also affirms NYK’s commitment to bring its ships and intermodal rail volumes to Tacoma for a 25-year period, starting in 2012.
2. A Memorandum of Agreement with NYK, Yusen Terminal Tacoma, Inc. (YTTI) and APMT, acknowledging their new business relationship.
3. A formal termination of the existing lease that called for the Port to build a 168-acre facility for NYK on the Blair Waterway. This action is called a lease termination and surrender agreement.

“These new agreements with APMT and the Port of Tacoma, NYK and YTTI, offer us the best long-term site to house our YTTI business, and to grow our NYK business in the Pacific Northwest,” said Peter Keller, Executive Vice President and Chief Operating Officer, NYK Group Americas, Inc. “We will be able to take advantage of the excellent road and intermodal rail infrastructure that the Port of Tacoma offers.”

Here are some of the highlights of the new agreements:

• NYK and its terminal operating subsidiary, YTTI, will operate in Tacoma in a business partnership with APMT without taking on a large commitment in excess capacity,·
• APMT realizes additional business at its facility through a business partnership with NYK and YTTI, and
• The Port maximizes the use of existing facilities without investing major capital.

“This is a very positive opportunity for us, and this kind of cooperation will help ensure the long-term growth and success of the Port of Tacoma,” said Jonathan Goldner, Director of APM Terminals Tacoma. “Our facility is well-suited to meet NYK’s terminal and intermodal operational needs, and we believe this is a winning scenario for both of our organizations, the Port and our stakeholders.”

The Port will have additional discussions with APMT, NYK, and YTTI in the months ahead to work through a variety of additional details and planning connected with these new agreements. In 2008, NYK handled an estimated 132,000 TEUs through the Port of Seattle.

“In a market with sufficient existing terminal capacity to serve our customers’ growth plans in the medium term,” said Farrell, “this is an important step to balance supply and demand. It still leaves the Port of Tacoma with room for substantial growth in the longer term.”

About the Port of Tacoma
The Port of Tacoma is an economic engine for South Puget Sound, with more than 43,000 family-wage jobs in Pierce County and 113,000 jobs across Washington state connected to Port activities. A major gateway to Asia and Alaska, the Port of Tacoma is among the largest container ports in North America. The Port is also a major center for bulk, breakbulk and project/heavy-lift cargoes, as well as automobiles and trucks.

Contact: Rod Koon, 253-383-9462, or Tara Mattina, 253-428-8674