A slow export market and labor dispute has the Port of Portland preparing for a 17.4% dip in marine operating revenue for the 2017 fiscal year.
Officials expect $5.7 million less in marine operating revenue than the agency had in its 2016 budget, the Port said Monday in a news release announcing a budget hearing.
The Port’s total operating revenue is budgeted at $288 million for fiscal 2017, down from the $295 million adopted for 2016. Operating expenditures are slated to remain relatively flat at $191 million, up from $190 million the previous year.
Hanjin Shipping Co. left the Port in February of 2015 amid a contentious labor battle between container-terminal operator ICTSI Oregon and the longshore workers union. Hanjin had accounted for nearly 80 percent of the Port’s container business. Shipping line Hapag-Lloyd, which carried about 20 percent of the Port’s containers, soon followed suit. That left Terminal 6 with only a single ship per month as of January.
(READ MORE: Oregon Live)
The Port of Portland’s lack of container ship service has adversely affected local scrap trade for Export Global Metals in Hillsboro. EG Metals downsized its workforce by 77% and moved the bulk of its operations to Texas, according to Oregon Live.