Recognizing they can face stiff global competition better together than apart, commissioners from the Ports of Seattle and Tacoma on Tuesday announced a new seaport alliance. The two ports will combine operations of their marine cargo facilities to create the continent's third largest gateway and better position the ports to attract global shipping companies. Increasingly, those companies are choosing other West Coast ports, most notably, Prince Rupert, British Columbia.
"Our Puget Sound share has diminished and Prince Rupert has grown," said Port of Tacoma commissioner Richard Marzano. "They've eaten our lunch, basically."
Puget Sound ports have been competing fiercely with one another, driving down prices in what critics have called a race to the bottom. Most recently, Tacoma's growth has come at Seattle's expense. But commissioners from both ports recognize the industry is changing rapidly. Shipping companies are consolidating, using larger ships that call less often.
In addition to growth in Canada, a larger Panama Canal will change the dynamics of the global industry. California ports also pose a competitive threat.
"We lose cargo to Canada, we lose cargo to California, that's not just the jobs of today, that's the jobs of tomorrow," said Port of Seattle commissioner Courtney Gregoire.
A recent study found that together, the Ports of Seattle and Tacoma generate 48,000 jobs and $4.3 billion in economic activity.
The new alliance is not a complete merger. Dean McGrath, a longshoreman for 23 years and the union president in Tacoma, hopes it will bring more jobs.
"If it's successful we could really boom," McGrath said.
McGrath said there is some concern among longshoremen about the details of the alliance, which will be finalized in the months ahead.
The ports expect to submit a detailed agreement to federal regulators by the end of March 2015.
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