The lease term is five years with five one-year renewal options. UP will lease 10 acres at the Port’s South Intermodal Yard with provisions to expand up to 25 acres (10 ha) during the term of the lease. The Railroad will guarantee a minimum of 35,000 intermodal lifts during the first year of operations and 45,000 lifts for the second year. Thereafter, the minimum lift guarantee will be increased by 5 percent per year. Lift fees charged to UP will be based upon Port of Tacoma costs from Pacific Rail Service.
The South Intermodal Yard is one of four intermodal rail yards at the Port of Tacoma. The 17 acre (6.9 ha) facility, with more than 8,500 feet (2,591 m) of track, is located along Milwaukee Way, adjacent to APM Terminals. In addition to UP business, the facility serves the Maersk Line and Horizon Lines business.
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