Washington Business Spring 2015 | Page 31

business backgrounder | economy Global Gains The new Seaport Alliance positions Washington for growth. Malia Jacobson Competitive pressure is reshaping the global shipping industry. As larger ships make fewer port calls and necessitate infrastructure upgrades at ports, competition between ports has driven down prices, impeding investment in equipment and infrastructure. The newly assembled Seaport Alliance unites marine cargo operations at the region’s two major seaports, positioning Puget Sound ports to compete in the changing global shipping market. Puget Sound is more than a picturesque backdrop for our region; its chilly shores house vital marine cargo gateways in Seattle and Tacoma that tie Washington residents to global trade. Whether you’re a business owner or a consumer, you can’t escape a connection to international trade, says Eric Johnson, executive director of Washington Public Ports Association. “People are surprised to learn how connected they are. When the shipping industry doesn’t work well, business doesn’t work well.” Washington businesses were reminded of that earlier this year when a slowdown at West Coast port operations cast ripples throughout the economy, impacting everything from Christmas tree and hay farming to exports of french fries and specialty batteries. That’s why businesses and consumers alike are enthusiastic about the proposed Seaport Alliance, a combining of assets of the region’s two major ports in Seattle and Tacoma. The Seaport Alliance will create more local jobs, encourage infrastructure improvements, and help our region maintain a leading role in international trade, says Port of Tacoma CEO John Wolfe. “The marine cargo operations in Tacoma and Seattle support 48,000 local jobs and generate nearly $4.3 billion in economic activity.” at a glance The marine gateways in Tacoma and Seattle support 48,000 local jobs and generate nearly $4.3 billion in economic activity. Together, the ports form the third-largest container gateway in North America. Both ports face increasing global competition. Market share has dropped 5 percent since 2000 and is down 9 percent YTD for 2015. By combining assets and presenting a united front to customers, the Seaport Alliance helps position the region for future growth. spring 2015 31