Deal Finalized to Save Oregon’s Only International Container Terminal

After more than 15 months of effort, the Port of Portland (Oregon) has completed a long-term agreement for the operation of Terminal 6, which is the state’s only active international container terminal. The port had announced in early 2024 that it planned to close the terminal due to mounting financial losses and the collapse of negotiations for a private operator.

"Scores of businesses throughout Oregon rely on Terminal 6 to ship their goods," said Governor Tina Kotek, who played a critical role by providing interim financing and state support to keep the terminal operating. "Oregon communities will be better off because we came together and worked toward this shared goal."

While it is located more than 100 miles from the ocean, the port plays a vital role in the state’s agricultural and seafood sectors. Without the port, they would have had to truck goods through other ports, raising costs. However, in 20214, with high fixed operating costs, loss of a rail service partner, BNSF, that had provided a connection to Seattle and Tacoma, and collapse of negotiations for a potential private operator, the port authority said it had no choice but to begin winding down the operation. It was pointed out that the Columbia River is shallow, limiting the size of vessels that can reach the port. In addition, it is a relatively small consumer market.

“The Port of Portland is the gateway connecting our farms, small businesses, and manufacturers to global markets,” noted Representative Shelly Boshart Davis.

The Port has been rebuilding container service since 2018 and was working to secure a private operating partner, highlighting that Terminal 6 is an important piece of Oregon’s economic infrastructure. California-based Harbor Industrial, which had been providing stevedoring services, reached a tentative agreement last December to become the operator.

The company will lease the 200-acre facility from the port authority for an initial seven-year term. It also has four options to extend the lease for a total of 20 years. Harbor has agreed to purchase seven new cranes for the terminal and will pay the port rent based on the amount of cargo it moves through the port. It will take over both the container and breakbulk operations at Terminal 6 as of December 31.

In June, Oregon legislators also approved $20 million recommended by Governor Tina Kotek for necessary capital improvements at the terminal. 

The port and Harbor Industrial report they are committed to maintaining the significant benefits of shipping goods through Oregon ports. The port released a long-term plan that calls for doubling the size of the operation, and together they said they look forward to continued operations and growth of the container terminal.