Business Agreements: Gulfport, Tacoma/Seattle

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Gulf Coast Shipyard plans to build LNG-power vessels on property leased from the Port of Gulfport. The ports of Seattle and Tacoma has filed a discussion agreement with the Federal Maritime Commission that will allow them to discuss options for responding to changes in the shipping industry.

Gulfport Approves Lease Agreement with Shipyard Group

Gulf Coast Shipyard Group is leasing space at the Port of Gulfport under the terms of an agreement approved January 17 by the port authority’s board of commissioners. Headquartered in Gulfport, the company, formerly known as Trinity Yachts, designs and builds offshore commercial vessels, offshore and inland barges, oil spill response and patrol vessels and oil field support vessels ranging in length from 10 to 125 meters.

Lease terms are for three years with three one-year options for renewal beginning March 1, 2014. Gulf Coast Shipyard Group has a contract to build six dual fuel liquefied natural gas (LNG) powered vessels for New Orleans-based Harvey Gulf International Marine, with options for an additional four vessels, and the shipbuilder will utilize 15,000 square feet of warehouse space and 400 linear feet of dock space on the port’s East Pier to complete these vessels.

"We envision having 20-70 workers on the port while completing each vessel," said company President John Dane III. "These will be trade jobs – painters, electricians, carpenters, mechanics – some of whom will be Gulf Coast Shipyard employees and some of whom will be employed by our subcontractors and suppliers." Gulf Coast Shipyard is expecting its first vessel to be at the Port of Gulfport in mid-March. 

Port Authority CEO Jonathan Daniels described the Gulf Coast Shipyard deal as the first successful conclusion of several lease discussions the port has underway. The port authority says it has signed memoranda of understanding with five prospective maritime tenants and is engaged in preliminary discussions with nine more.

Tacoma and Seattle to Discuss Response to Shipping Industry Changes

The ports of Seattle and Tacoma on January 17 issued the following joint statement:

"The ports of Seattle and Tacoma will file a discussion agreement with the Federal Maritime Commission on Friday that will allow us under federal regulations to gather and share information to identify potential options for responding to unprecedented industry pressures.

"While the ports of Tacoma and Seattle have many advantages, such as naturally deep water and strong highway and rail connections to the second-largest concentration of warehouses and distribution centers on the West Coast, we must leverage our strengths in the face of continued soft demand and increasing competition.

"The ports of Seattle and Tacoma face fierce competition from ports throughout North America and must adjust to shifts in the global maritime industry. Global shipping lines, continuing to lose millions of dollars each year, are investing in larger vessels with more capacity, sharing those vessels, consolidating terminals and reducing the number of ports at which they call.

"These discussions are aimed at increasing our collective market share and generating more container cargo moving through Puget Sound, the nation’s third-largest container gateway. We value our responsibility to serve the citizens of Pierce and King counties – and the manufacturers and agricultural exporters throughout the state – to continue to support thousands of jobs and generate significant tax revenues to state and local governments.

"The agreement allows the two ports, with appropriate legal oversight, to share information about their respective operations, facilities and rates. Both port commissions agree that a change in governance, such as a merger, will not be part of this discussion and no subsequent outcomes are presupposed.

"Both ports are committed to financially viable business models that support customer success, benefit the citizens of both counties and ensure the ability of the ports to reinvest in terminal assets and infrastructure."

Click here for the discussion agreement the ports have filed with the Federal Maritime Commission.