But, in practice, it is almost always more economical to use the stevedores who already work at that terminal.
(2) Preferential Use in Container Terminals
1) Concerning the holding of the right of the preferential use by tenants and secondary right of use by the port authorities, does this apply just to berths or to berths plus terminals?
The secondary rights of use includes both berthing and use of terminal facilities.
2) It is reported that the exclusive use of berths by a single private company is prohibited by law: what is the name and exact wording of that law?
No, the exclusive use of berth by a single private company is not prohibited by law in Seattle' s case.
(3) Exercising of the Secondary Right of Use
1) Please demonstrate methods whereby the port authorities exercise the secondary right of use.
(For example)
・ The authorities exercise the secondary right of use and announce that a prospective shipping company can use an appropriate terminal (berth).
・ The authorities coordinate an appropriate terminal (berth) with an applying shipping company aud grant secondary right of use for the terminal to another shipping company.
2) It is understood that agreements concerning priority right of use and secondary right of use, etc. are contained in lease contracts between the port authorities and terminal tenants. As a concrete example, please show the part of a real contract which deals with this subject (omitting compauy names, actual fees aud other information which cannot be disclosed).
Example of a Right of Secondafy Use clause:
" c. The Port resewes the right of secondary use of all or any part of the Premises and Equipment for berthing of vessels operated by companies other than those named or approved by the Port under this paragraph, for the loading and discharging of cargoes of such vessels and incidental operations pro vided that such secondary use of the Premises and Cranes by the Port does not interfere with Lessee ' s operations authorized in this lease. In the event of this secondary use by the Port, all applicale charges shall accrue to the bene~t of and shall be billed and retained by the Port. utility charges and maintenance costs applicable to secondary usage shall be the responsibility of the Port. The Port' s liability insurance shall be considered primary over that of the Lessee during such usage by the Port. "
3. Taxes Collected by the Port Authority
1)It was heard that the port authority is able to collect taxes at ports and harbors in Washington State. Please indicate the legislation and ordinances, etc. that form the basis for this.
The Port of Seattle is a Imunicipal corporation " of the State of Washington, codiaed at Title 53.04.011 of the Revised Code of Washington. This "municipal corporation" status gives the Port the power to collect taxies on real estate from within the "Port
Districr' (which co-terminates with the King County) .
2) Moreover, it was heard that the said taxes can only be used to purchase land for port development. Please indicate the legislation and ordinances, etc. that form the basis for this.
