The Manila-headquartered terminal operator’s subsidiary ICTSI Oregon signed a lease termination agreement with the Port of Portland on 8 March for Terminal 6. ICTSI had a 25-year lease to operate the terminal which will be terminated on 31 March this year under the agreement.
Under the termination agreement ICTSI will pay the Port of Portland $11.45m on, or before 31 March.
The agreement sees ICTSI pulling out of the port just six years after it took over operations of Terminal 6 under a 25-year lease deal which was signed in May 2010.
The terminal operator was engaged in a lengthy dispute with the powerful International Longshore and Warehouse Union (ILWU) which saw over three years of industrial action at the terminal.
As a result the terminal’s main customer Hanjin Shipping quit the Port of Portland in March 2015. The other major container line using the terminal, Hapag-Lloyd, stopped calling a month later in April 2015.
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