As this trend continues, larger terminals will be required at load center ports with potential service by larger carriers on behalf of smaller carriers. In addition, more carriers will add Post-Panamax vessels to their fleets.
According to the Port, and confirmed by BST Associates the following carriers require additional space:
・ COSCO and the New Grand Alliance (a VSA comprising NYK, OOCL, Hapag Lloyd, and P & O Nedlloyd), customers of SSA at T18.
・ Hanjin at T46.
3. Intermodal Rail Activities
The majority of international containers moving across Port facilities use intermodal rail service, that is, container service using both rail and ship modes of transportation. For example, containers imported from Japan through Seattle by waterborne carrier and then transshipped to Chicago by rail are transported intermodally. The development of intermodal service has been accompanied by a large demand for fast and efficient rail service. Railroads are beginning to concentrate on international shipment of containers. Doublestack railcars capable of carrying two 40-foot containers, have greatly improved the efficiency of intermodal transport. The Burlington Northern and Santa Fe Railway ("BNSF") and the Union Pacific Railroad ("UP") companies, which serve all carriers utilizing the ports of Seattle and Tacoma, have consistently been major participants in this trade.
The trends in intermodal rail carriage that will impact port development are:
・Increased use of doublestack equipment.
・Increased control of intermodal choices for international shipment of containers by the ocean carriers.
・Continued efforts to reduce truck drayage through the use of on-dock rail.
・Increased use of Electronic Data Interchange ("EDI") and other administrative improvements to facilitate the flow of cargo.
The existing T18 site includes an on-dock intermodal yard. The proposed T18 Project includes the expancion of these facilities to provide a state-of-the-art on-dock intermodal yard with provisions to load/unload two unit trains at the same time, as well as additional arrival/departure and storage tracks. The use of such facilities is driven by customer requirements .Currently, the existing intermodel facilities are only used for approximately five percent of the total containers and the facility does not appear to be causing a capacity constraint on operations at the current time. However, the provisions for such enhanced facilities will allow the Lessee to continue to meet customer requirements and will help its efforts to attract new customers.In addition, the Lessee is a leader in the use of EDI. This feature, in addition to the on-dock rail facility to be constructed, will allow T18 and the Lessee to compete effectively in the evolving market.
Access to major interstate highways is a key factor in intermodal transport. The Port, including its facilities at T18, has immediate access to a controlled access roadway that merges with the Interstate Highway System used to transport containerized cargo between the Port and Vancouver, B. C.; Spokane, Washington; Portland, Oregon; and Boise, Idaho. The highways most frequently used are Interstate 5 and Interstate 90.
D. Principal Documents for the Transaction and Operation of T18
The framework for the transaction consists primarily of:
・The Resolution-
Resolution No. 3321, as amended, authorizing the sale and issuance of special facility revenue bonds for the purpose of paying for the Bond Improvements.
・Base Lease-
Between the Port and the Trustee, granting the Trustee a leasehold interest in the Site, including all existing improvements and the right to sublease the Site to third parties in the event the Port fails to comply with the Resolution .
