Excerpts from the Wall Street Journal:
The commissioners of Seattle and Tacoma ports — and longtime rivals for international trade — agreed in a unanimous vote Friday to form the Northwest Seaport Alliance to jointly operate their cargo terminals.
“We used to think, the more competition the better,” said Jock O’Connell, an international trade economist. But the advent of ultra-large ships, some of which can carry up to 20,000 cargo containers, has thrown port operations for a loop, he said.
“The competition isn’t just between ports anymore, it’s between the ports and the shipping industry,” Mr. O’Connell said. The Seattle-Tacoma alliance will allow the ports, which are some 35 miles apart, to “catch up and reengineer their infrastructure so they’re better able to cope with the challenges posed by larger vessels,” he said.
The agreement now goes before the Federal Maritime Commission, which will decide whether the pact harms overall competition in shipping. The FMC will post it for a 10-day public comment period and has 45 days to request additional information, but the port commissions expect it to be approved by late July or early August.