The NWSA expects a new partnership between GLOVIS America, Wallenius Wilhelmsen Solutions (WWS) and the port will lead to a significant increase in both finished vehicles and breakbulk operations.

“The GLOVIS America consolidation expands upon a longstanding partnership between GLOVIS America and NWSA at the Port of Tacoma. In addition to Kias, many thousands of Hyundais will begin to be imported and processed at the WWS facility in Tacoma each year, increasing automobile volumes and job opportunities in our gateway,” stated John McCarthy, The Northwest Seaport Alliance Managing Member.

Hyundai GLOVIS Co., Ltd. is a logistics company headquartered in Seoul, South Korea and part of the Hyundai Kia Automotive Group that manages logistics for both automotive brands. The NWSA’s South Harbor (Tacoma), which was already the port of entry for Kias processed by the Auto Warehousing Company (AWC), was selected to handle the combined business from Hyundai and Kia.

“GLOVIS America sought out a strategic gateway that could provide superior customer service as well as the resources to handle both the Kia and Hyundai automobile business now and into the future. The Tacoma harbor was the clear choice,” stated Jason Woo, President & CEO of GLOVIS Americas.

“GLOVIS America appreciates our partnership with the NWSA and is already actively pursuing additional  growth in automobile and break-bulk volumes as part of our commitment to the Port of Tacoma as our mega port in the PNW.” Scott Cornell, CEO of GLOVIS America.

Cornell said the agreement “has the potential to more than double current auto volumes” but this will be a challenge as sales of electric vehicles (EVs) increase. Non-US auto producers are now facing a significant disadvantage in the US market from the new Inflation Reduction Act. This created tax credits of up to $7,500 for purchases of electric vehicles. To be eligible for the subsidy both the cars and their batteries must be made in North America.

Neither Hyundai nor Kia currently has any electric vehicle production in North America currently. The subsidies are a major issue for Hyundai in particular, which is second in electric vehicle market share in the US in 2022 after Tesla. The batteries in Hyundai electric cars are supplied by Korean companies and manufactured from materials sourced in China.

Hyundai is developing a plant for producing electric vehicles on the US East Coast, near Savannah in Georgia, at a cost of over $5.5 billion but it is not expected to start production until 2025. South Korean officials and senators from Georgia are currently lobbying to have the US Treasury recognise Hyundai’s investment in US EV production and adopt transitional arrangements in the tax credit programme for imported EVs.