The Port of Portland and ICTSI Oregon, Inc. have mutually agreed to terminate a 25-year lease agreement to operate the port’s Terminal 6 container facility, effective March 31, 2017.

According to the port, ICTSI Oregon will be relieved of its long-term obligations and will pay US$11.45 million in compensation to the port for additional handling equipment, spare parts and tools to rebuild business at the terminal.

“This is the best opportunity to launch a new strategy to restore carrier service for Oregon and Northwest shippers,” said Bill Wyatt, executive director of the Port of Portland. “While the global carrier industry continues to undergo rapid change, we now have a new path to redefine our future in this business and launch new strategies to bring the terminal back to life. I also want to thank Governor Kate Brown for her long-term engagement on shipper solutions. The trade and logistics initiative will be invaluable as we assess future options at Terminal 6, a process in which the governor will be an integral player.”

The two parties signed the lease agreement in 2010 but ICTSI and the International Longshore and Warehouse Union have been involved in an ongoing labour dispute.

“Small businesses, farmers, agricultural producers, shippers and communities throughout the Columbia River region deserve and need a fully functioning container terminal,” said Elvis Ganda, CEO of ICTSI Oregon. “Hopefully, this agreement with the port will make it possible for business to return to the terminal more quickly. However, ICTSI Oregon will continue to address the labour issues that gave rise to its decision to enter into this agreement and will pursue its legal claims against the ILWU.”