The Port of Portland will continue paying subsidies to ocean carriers so they don't abandon its container terminal facility, which agricultural exporters rely on, reports Capital Press.
The Port of Portland is extending subsidies paid to ocean carriers to convince them to continue shipping cargo to and from its container terminal facility.
Agricultural exporters in Oregon hope to keep the container terminal open, because otherwise they would have to ship farm goods at greater expense through the more distant ports of Seattle and Tacoma, the report said.
The port commission voted on 10 December to pay up to US$4m in subsidies to Hanjin and other carriers, which are at risk of avoiding the facility due to slow container movements.
The subsidies were approved over the objections of the longshoremen’s union, which is engaged in a dispute with the contractor that operates the terminal, ICTSI Oregon. The company accuses the union of staging slowdowns that threaten its relationship with carriers, the report said.
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