Wednesday , 18 September 2019
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The Port of Tacoma commissioners have agreed a US$5.75m settlement for the design and development costs the port incurred on a 168-acre terminal for NYK Lines. The proposed terminal was cancelled in 2009 after the recession cut shipping volumes and port profits.

Tacoma and NYK agree a settlement

The port has previously stated that it had spent about US$11m on design and construction expenses for the NYK terminal on the Blair Peninsula before the deal was cancelled.

NYK and its terminal operations subsidiary, Yusen Terminal Tacoma Inc., argued that of that amount, US$7.8m was related to design that was specific to NYK and Yusen’s terminal and which would have no residual value to the port.

The line also asked that a US$2m reservation fee it paid to secure the terminal contract be repaid. Under the original agreement, the port would have refunded that fee as credits against the shipping line’s lease payments for the terminal.

As part of the settlement NYK has also agreed not to pursue the return of US$1m it paid in costs related to the never-built terminal.

NYK has reportedly agreed with terminal operator APM to use its Tacoma terminal facilities for its local business which have been underutilised since Maersk Line consolidated its operations with CMA-CGM and moved its operations to Seattle two years ago. NYK is scheduled to move its operations to the APM terminal in mid-2012.

The settlement represents only fraction of the costs the port incurred in preparing for NYK’s move to Tacoma It spent around US$140m to acquire land and design new infrastructure before the deal was cancelled. However, that cost wasn’t included in the settlement negotiation because the port retains ownership of the land which could become the site of a new container terminal at a future date.