
The Federal Maritime Commission will take up a dispute in which container handler SSA Terminals alleges that Oakland, Calif.’s board of port commissioners gave better facility rental terms to Ports America Outer Harbor Terminal.
SSA, according to a Federal Register notice, alleges the port and PAOHT entered a lease agreement that violates federal law “by granting more reasonable terms for the rental and use of marine terminal facilities to PAOHT” than given to SSA.
The impact for SSA, that company says, has been higher rents and lost business, for “damages in the millions of dollars.” SSA asked the FMC to require Oakland to answer the charges, and to hold a hearing on the dispute in Washington, D.C.
It is seeking reparations plus litigation costs and possible other damages, but may have to wait more than a year for a result.
The FMC assigned the complaint to the Office of Administrative Law Judges, and said any potential hearing will come “only after consideration has been given by the parties and the presiding officer to the use of alternative forms of dispute resolution.”
An initial decision by that officer may take until Dec. 28, 2010, the Register notice said, and the commission has until April 27, 2011, to finish up.
For a copy of the Federal Register entry, click here http://edocket.access.gpo.gov/2009/pdf/E9-31065.pdf
Contact John D. Boyd at jboyd@joc.com.
At the Port of Oakland, we value all of our customers and strive to do our best to serve them well. The respective terminal agreements' investment requirements, payments, and length and terms of service are structured very differently with regards to SSAT and Ports America. Our 50-year agreement with Ports America is a new model of public/private partnership that addresses a changing business climate. We filed a formal response to the complaint, Wednesday, January 13, 2010. Our Request for Qualifications process was transparent, fair and open. The Port of Oakland looks forward to a prompt adjudication of this matter by the Federal Maritime Commission. We appreciate our customers and look forward to our continuing partnerships through 2010 and beyond."
Marilyn Sandifur
Port Spokesperson
Port of Oakland
Oakland, CA, USA