Port Loses PacArctic Logistics as Marine Terminal Tenant

By Rolf Boone, September 24, 2013, The Olympian

The Port of Olympia no longer is working with marine terminal tenant PacArctic Logistics, which planned to use the port every month to ship heavy equipment to Alaska.

PacArctic, which was once a division of an Alaska company called Koniag Inc., made its only shipment from the port in early June. PacArctic President King Hufford III and Koniag interim President Tom Panamaroff could not be reached Monday.

PacArctic no longer is listed as a division of Koniag on the company website.

In an email sent to The Olympian, port Executive Director Ed Galligan said he reached out to Koniag and Panamaroff after the port learned the PacArctic service was terminated.

Galligan said he called PacArctic to say the port was ready to serve the company should Koniag decide to “commence service again.” He said he also asked whether the port could have done anything differently.

“His (Panamaroff’s) answer was that there was nothing we could do, or have done, and that they were pleased with the support and service they received from the Port of Olympia,” Galligan said.

The PacArctic lease took effect in March and was set to run through the end of the year, port finance director Jeff Smith said. He said PacArctic has paid its lease through September, and added that the port is protected should any outstanding bills not be paid.

The port and state require that money be pledged or a surety bond be used in the event lease payments can’t be made, for example.

In the case of PacArctic, the business agreed to pledge $42,770 to cover rent, leasehold tax and service fees for six months.

But it also means the port made far less on the lease than originally thought. The original goal, which was based on a monthly shipment to Alaska, was expected to generate gross revenue of $700,000, or $340,000 after expenses, Smith said.

The port instead was paid more than $100,000 for the one shipment in June, plus about $6,500 a month in base rent, he said.

The other major marine terminal tenants at the port are Weyerhaeuser, Rainbow Ceramics and Pacific Lumber and Shipping.

Two ships called on the port over the weekend, one to load logs and the other to deliver bagged ceramic proppants, a material used in an underground oil and gas exploration method known as hydraulic fracturing. Pacific Lumber and Shipping, like Weyerhaeuser, also exports raw logs through the port.

Contact Form Powered By : XYZScripts.com