Tacoma port signs intermodal yard lease with UP
The Port of Tacoma approved a lease agreement with Class I railroad Union Pacific last week to handle intermodal traffic at the port’s South Intermodal Yard by the end of the year.
The agreement allows the Omaha, Neb.-based UP to expand its presence in Tacoma by moving the railroad’s domestic service from its Seattle Argo Intermodal yard to the South Intermodal Yard. According to the port, this will free capacity at the Argo yard for additional international business.
'In addition to providing additional business activity for the South Intermodal Yard, this agreement strengthens the diversity of our port’s intermodal business by significantly adding to our base of domestic container movements,' said Michael Reilly, Port of Tacoma's director of intermodal business.
John Kaiser, UP vice president and general manager of intermodal, said the lease will allow UP and the port to more effectively utilize each other's respective assets.
“We appreciate the willingness of the Port of Tacoma to work closely with us to create a win-win solution that promotes future growth in the Puget Sound area,' Kaiser said.
The five-year lease has five one-year renewal options. UP will lease 10 acres at the South Intermodal Yard with provisions to expand up to 25 acres during the term of the lease. UP will guarantee a minimum of 35,000 intermodal lifts during the first year of operations and 45,000 lifts for the second year. Thereafter, the minimum lift guarantee will be increased by 5 percent per year. Lift fees charged to UP will be based upon Port of Tacoma costs from Pacific Rail Service.
