Port of Grays Harbor commissioners approved a 20-year lease Tuesday for a New Orleans-based liquid bulk shipping and storage company to locate at Terminal 1 in Hoquiam.
Westway Terminals hopes to construct a new distribution hub near Terminal 1 early next year to move huge quantities of liquids from methanol to molasses. Port commissioners approved the lease with the company during their monthly meeting despite longshore union concerns.
“This Westway Terminals definitely meets the goals of the Port and the goals of the commissioners,” Port Commissioner Chuck Caldwell said. “I personally don’t see any reason to hold up the authorization.”
Scott MacKenzie, vice president of the company’s business development, said Westway Terminals hopes to build a $15 million to $20 million facility capable of holding 320,000 barrels of everything from methanol to molasses.
With a company motto of “Every drop counts,” Westway Terminals stores and distributes large amounts of liquids for other companies throughout the world, he said. It controls dozens of similar facilities on the East Coast, in Europe and other locations internationally, but is seeking a Northwest presence.
The company is pursuing permits to build on 15 acres near Terminal 1, MacKenzie said. Construction would begin early next year in hopes of beginning operations in November of 2009.
MacKenzie said the facility would create just eight to 12 jobs, but could significantly increase vessel traffic into the Port. He estimated about 15 shipments a year with hopes of increasing to almost twice that once established.
“We’re also looking at an increase in business in this area as well,” he said.

Commissioner Stan Pinnick said the business looked like a solid addition to the ever-growing number of companies along the Port. He said the lease is also consistent with other recent projects.
Billy Swor, secretary for the International Longshore and Warehouse Union Local 24, opposed the immediate approval of the lease on the grounds that the union had not been involved in the discussion.
“Make no mistake, we’re not condemning the concept of development work,” he said. “What we’re condemning is the failure to communicate.”
Swor said union members were “angry and frustrated” they were left out of the loop. The lease was dated at the beginning of the month, but the union was not notified until late last week. He asked that the lease be tabled until next month, so the parties could discuss the impact on labor.
“Without talking to the effected bargaining unit,” he said, “I don’t know how you can consider this.”
Pinnick said the agreement was similar to other contracts with partners at the Port. He said any issues that arise with the union could be sorted out later.
“Basically we feel the standards are being met and all the arrangements will be dealt with as time passes,” Pinnick said.
Swor rose to speak again and said he thought Westway Terminals seemed like a good business and a boost to the area, but he still wanted to have discussion before any final decisions were made.
“This is a very good, business-supportive community and this is not any reflection on your business,” Swor said to MacKenzie. “(But) I think the parties should at least sit and talk.”
Swor later introduced himself to MacKenzie, shook hands and offered to exchange contact information. He again explained he just wanted more information before moving forward.
The Port announced the company would pay more than $13,000 a month in rent as well as taxes. Port officials said they hope to complete the permit process as soon as possible so the company can start construction.
“They’re a big, big customer,” commissioner Jack Thompson said. “We’re looking forward to some big things from them.”