Facebook Twitter Twitter    Archive | www.aapa-ports.org March 31, 2015
   

Finance: Seattle, Virginia

Print Print this Article | Send to Colleague

Seattle: 2014 Numbers Put Port in Strong Financial Position 

The Port of Seattle reported its 2014 financial performance put the organization in a strong financial position for 2015. While total operating revenues essentially met budget, expenses were nearly 5 percent below budget – as a result, net operating income was 6 percent above budget. Most lines of business showed strong overall financial performance.

"Since joining the commission, it has been my goal to ensure that this organization demonstrate strong financial health," said Port of Seattle Commission Co-President Stephanie Bowman. "I am pleased that these numbers put us on a strong footing for 2015."

Seaport net operating income exceeded budget by $1 million, as TEU volume dropped 11 percent from 2013. Grain volumes were up 168 percent from 2013, at 3,618 metric tons, and 64 percent over 2014 budget. Cruise showed another strong year, with over 800,000 revenue passengers for the seventh year in a row.

Sea-Tac International Airport passengers increased 7.7 percent above 2013. This reflects new scheduled flights, primarily by Alaska and Delta, with much of the new seat capacity added in the second half of the year. The airport’s strong passenger growth drove particularly strong financial results in parking, dining, retail, rental car, and other non-airline revenues that came in 8.6 percent above budget for the year.

The Real Estate Division’s net operating income exceeded budget by nearly $2 million, with port commercial properties at 93 percent occupancy, above the year-end 2014 Seattle market average of 92 percent. Recreational marinas were at target occupancy of 96 percent.

Including both operating and non-operating revenues, overall 2014 total revenues were $742.4 million. That was $11.9 million above budget and $8.2 million higher than the 2013 actual. Total expenses, at $611.0 million, were $41.7 million below budget and $11.8 million lower than 2013 actual. Net income for the year was $131.5 million, up 18 percent, or $20 million, from 2013.

Other key business accomplishments in 2014 included:
  • Planning began for renovation of the North Satellite and International Arrivals Hall at Sea-Tac International Airport.
  • Terminal 5 began the process of modernization to make "Big Ship Ready."
  • Successfully launched the SODO Business Improvement District with the City of Seattle and SODO businesses and property owners.
  • Achieved agreements to return Native American cultural materials to the Muckleshoot and Suquamish Indian tribes.
  • Finalized a project list as part of the joint Freight Access Project and launched the Freight Master Plan with the City of Seattle.
  • Successfully negotiated updates to the City of Seattle’s Shoreline Master Plan.
  • Completed the Economic Impact Study of the Port of Seattle.

Virginia: February Weather Adversely Impacts Port Authority’s Service Performance 

Weather-driven closures led to a $560,000 loss for the Port of Virginia in the month of February. More specifically, says the port, February’s snow storms resulted in:
  • Four lost workdays
  • Slowed productivity following resumption of operations due to difficult working conditions
  • A temporary halt to eastbound export rail traffic
  • Poor service at the gates
  • Significant snow removal and clean-up costs 
The port had budgeted for a $288,000 operating loss, but the cost of the closures, ensuing snow-removal and resumption of operations costs and lost productivity increased the loss. The loss in February 2013 was $1.3 million, comparatively. 

"It was a difficult month, the residuals of which we are still addressing," said John F. Reinhart, CEO and executive director of the Virginia Port Authority. "The storms and ensuing closures had a negative effect on every phase of our operation, especially service to motor carriers." 

Furthermore, he said: "The volume was lower than forecast and prior year because of vessel delays where 7,000 moves from February did not occur until the first days of March. Further, we had to halt eastbound export rail for work to clear up rail cargo on terminal. Those delays resulted in volume and revenue reductions in February, much of which will be captured in March." 

The fiscal-year-to-date result is an operating profit of $4.6 million, versus a prior year operating loss of $16.6 million, or an improvement of $21.2 million year-over-year. The port’s fiscal year begins July 1. 

"February is behind us and March continues to be extremely challenging, but we will continue to invest and target a positive operating result for the fiscal year," Mr. Reinhart said. "We have not been able to deliver consistency at the gates at Virginia International Gateway, but we are taking multiple steps and putting forth our best effort to restore service there. We continue to be committed to delivering reliable service to our customers, stakeholders and partners."
 

Share Share on Facebook Share on Twitter Share on LinkedIn