Port of Seattle CEO Ted Fick provided an overview of the various projects and initiatives happening through the port at the Sammamish Chamber luncheon Sept. 15 at Sahalee Country Club.
In a presentation to chamber members, Fick said the port was all about industrial growth and creating jobs through travel, trade, tourism and the movement of cargo. In an effort for regional economic development, he mentioned the “strategic partnerships” the port was forming with government organizations, in the private sector, with the FAA, the governor’s office and all 39 mayors in King County.
“I’ve taken a very different approach to running the Port of Seattle than my predecessors,” Fick said. “I am not interested in being city of Seattle-centric; I’m interested in being region-centric. So when I talk about region, I like to think about all 39 cities in King County and all 39 counties in the state of Washington. I’m interested in strengthening the entire region, not just the largest city in the state.”
Fick touched on the port’s vision to add 100,000 living wage jobs through economic growth. He said among the port’s overarching objectives were to be environmentally-sound, rooted in small business growth and workforce development.
Fick noted the Port of Seattle is the second-largest landowner in King County behind Boeing, and that its largest line of business is its aviation division, which includes Sea-Tac Airport. He said the airport is responsible for 170,000 jobs and is undergoing a “tremendous amount” of infrastructure-building to accommodate growth. Fick said 46 million people came through the airport this year, up from 42 million last year.
“Five years ago, we had 30 million passengers come through our airport. We’re on the cusp of getting ready for 66 million passengers to come through our airport in the very near future,” he said. “At one time, we thought that was a 20-year number, but I think that’s going to be on our front doorstep simply because we’ve had these tremendous growth rates that have more than doubled the industry’s average. Last year, we grew 13 percent. The year before that, 7.7 percent. This year, we’re up 10 percent. It’s just phenomenal what this region is doing in terms of economic activity.”
On the horizon at Sea-Tac will be a new international arrival facility, an expansion of the north concourse and a new high-speed baggage system underneath the airport. The international arrival project broke ground this summer and is expected to be completed in 2019. A $640 million project, it will aim to double the number of international flights over the course of the next 25 years.
Fick said the airport has seen international business grow dramatically. Designed for 1,200 passengers at peak hour, the airport currently sees 1,800 passengers during its peak. He added every new international route creates 1,400 new jobs and $75 million of economic activity.
The north concourse expansion, also referred to as NorthSTAR, will see the concourse expand from 12 gates to 20 gates and will feature 180,000 new square feet, including more retail dining and lounge space. Fick said the $550 million project is expected to be completed in 2021. The new baggage system will replace the aging conveyor system. The estimated cost of the project is $320 million and is expected to be completed in 2023.
Fick said the port’s maritime division includes the most successful cruise business on the West Coast. Last year, the Port of Seattle partnered with the Port of Tacoma to form the Northwest Seaport Alliance, where all container cargo can be handled. Fick said together, Seattle and Tacoma represent the third-largest gateway in the country behind New York-New Jersey and L.A.-Long Beach, handling 3.6 million containers a year between the two ports.
Fick mentioned he was concerned about development for skilled trade jobs and said the port was sponsoring apprenticeship programs. This year, the Port of Seattle increased its number of high school and college interns from 34 to 105.
“We’re not hiring the teachers or putting up the schools,” he said, “but we’re certainly supporting the funding of the vocational technical programs, labor programs and internships that support these major clusters that are meaningful to the port.”
Seattle has traffic, and Fick said the port was interested in solutions that address it, noting the port is one of three funders of the Bertha tunnel project. He also mentioned the port was working on different ways to be conscious of its environmental impact with efforts like cleaning up the Duwamish and restoring habitats. He said such initiatives and programs from the port were one of the reasons why it has a tax levy.
“We’re a very profitable port but we do have some projects that don’t pay their own way. We feel really good about investing in those, and those are things like social responsibility, workforce development and environmental stewardship. Those things are why you pay $20 a year to the Port of Seattle on your property taxes,” he said. “At the end of the day, it’s our job to be good stewards to those and be accountable to each of you for how we spend your money on those projects.”