APM Terminals set to exit Tacoma

News 6 Apr 2017 by WCN Editorial

With Matson lines moving its Tacoma services to SSAT, APM Terminals has signalled it is likely to exit Tacoma.

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This week Matson Lines announced it had “elected to use its joint venture partner SSA Terminals for stevedoring and terminal services at the Port of Tacoma when its existing agreement with APM Terminals (APMT) expires on December 31, 2017".

"APMT has served us well. It just makes more sense to work with our strategic partner at Tacoma as we do at all of our other terminals on the West Coast," said Ron Forest, senior vice president – operations for Matson. "We expect a seamless transition and no change in our Tacoma operations from a customer standpoint.”

Matson’s Alaska business makes up most of the current 190,000 TEU volume handled through the 600,000 TEU capacity facility, according to APM Terminals.

The move does not come as a surprise. APM Terminals Tacoma facility was in fact leased to Horizon lines, which had a stevedoring agreement with APM Terminals. The last Horizon Lines lease expired in December 2015, the same year Horizon sold its Alaska services to Matson and its Hawaii services to the Pasha Group.

In February 2015 the Port of Tacoma approved a two year extension to lease agreements at Tacoma that would effectively allow APM Terminals to provide continuity to the Matson and Pasha as they took over the Horizon services, but changes were always on the cards. Pasha in fact dropped Horizon’s Tacoma – Hawaii service shortly after its acquisition.

This effectively left APM Terminals with Matson – it does not handle Maersk Line services in Tacoma, the carrier moved these to Seattle in 2008.

It is not clear at this point whether SSAT will take over some or all of the APM Terminals facility. As part of the 2015 lease extension some of the yard area was made available to the port for auto storage. It is believed the five STS cranes at the terminal are owned by the Port of Tacoma.

In a statement APMT said it is “evaluating all options with respect to its existing terminal lease, which is currently set to expire on December 31, 2017.”

“We are proud of the service we have been able to provide to the Port of Tacoma and the Seaport Alliance, and of the recognition APM Terminals Tacoma has consistently received by the Pacific Maritime Association for Safety Performance,” stated APM Terminals North America President, Wim Lagaay.