Whenever a port attracts new clients in the current economy the shipping industry pays attention. So when the Port of Tacoma and Washington United Terminals announced in June the Grand Alliance would be coming to Tacoma, all eyes turned to the South Sound.

“It definitely puts the Port of Tacoma on the map,” said Tong Zhu, chief commercial officer for the port. “The shipping industry is still going through a tough period. So, this is really an opportunity for the port and for Pierce County.”

And while the new kid on the block only started operating this summer, the impact of the Grand Alliance’s presence is already being felt.

Zhu said the port anticipates that because of the arrival of the Grand Alliance, its container business volume will grow by 25 percent compared to last year.

Scott Mason, ILWU Local 23 president, said the union doesn’t know exactly how many extra man hours have been added because that information is tracked on a quarterly basis. But he said membership has been getting “a huge increase in work,” which he said is equivalent to hundreds of full-time jobs.

“The last few months have been an incredibly huge shot in the arm for Tacoma and the region,” Mason said. “For the longshoremen and the associated businesses, it’s been tremendous.”

Zhu said Pierce County is home to a lot of logistic service, trucking, storage and warehouse companies that have benefited from the Grand Alliance.

“One or two companies have expanded their businesses. Others have gained new business as a direct result of the Grand Alliance,” she said.

And because the port also has a robust real estate business, Zhu said she believes other companies will be more attracted to the area now.

“I think this is just the beginning,” Zhu said. “I’m confident more will come.”

Growing pains

Because the growth of business has been “incredible,” Mason said there have been some bumps in the road.

“We are working through those and we are improving really quickly with lots of training going on with new members and additional workers,” he said.

To help with this transition, Zhu said the Port of Tacoma has tried to help develop solutions in partnership with Washington United Terminals.

“The commissioners have the right vision toward fulfilling their mission to create economic vitality and create jobs, jobs, jobs at the Port of Tacoma and the surrounding area,” Mason said. “The types of jobs created sustain and support really high-value things like investment in our community and the ability to contribute to the arts.”

Port of Tacoma Commissioner Dick Marzano said the port is looking for new clients, but wants to make sure it’s taking care of businesses already doing business at the port.

“As we reach out to new customers, you don’t forget how you got here — and that is with the customers you currently have,” he said.

Break bulk

Historically, break bulk at the port was roll-on, roll-off. But the Grand Alliance brings carriers that specialize in break bulk units that are put on flat racks and then lifted on to a vessel.

Thirty days into having the Grand Alliance operating at the Port of Tacoma, Larry St. Clair, director of non-containerized business development, said it’s difficult to determine the overall increase in break bulk numbers.

However, he said that break bulk previously made up 4 percent to 5 percent of the port’s business. As of the end of August, that number was around 8 percent.

“We will be interested to see what the Grand Alliance brings us in terms of additional break bulk business,” St. Clair said. “We have not had steam ship carriers in this harbor that were interested in break bulk business. But now, with the Grand Alliance, that will be an additive to what we’ve done before.”

When asked what kind of new businesses he would like to see at the port, Mason said the focus should be on updating the port’s break bulk facility.

“I’d like to see them continue to seek new steamship lines or new trade routes — that maybe go north and south opposed to all east and west,” he said.

Other areas of growth

While expanding the break bulk business is on the port’s agenda, Zhu said the port has a much broader plan for growth.

“We are expanding our business portfolio. We are not exclusively focusing on the container,” she said. “We are very actively engaged in exploring other new business opportunities that the port is not engaged in today.”

Some time next year, Zhu said, the port likely will add another line of business. In the meantime, it is trying to improve the business environment it provides to current customers.

“We are definitely looking at how we can re-tool our infrastructure, terminal equipment and how do we support our customers to expand their business or to go after third party business,” she said. “We pride ourselves as being responsive and delivering that customer service that hopefully no other port can compete with.”

Source: Business Examiner