Officials for the Port of Seattle are adopting a new strategic framework to guide organizational spending and solidify Seattle’s maritime and aviation industries as a model for global trade and travel.
The Port of Seattle is unveiling the new operating budget for 2025 along with a five-year Capital Improvement Plan (CIP) that will outline the long-term vision for the city’s ports and airports. Combined, the two initiatives will approve about $5.6 billion in investments to improve port-owned infrastructure, expand community programs and emphasize sustainability and equity in maritime and aviation operations.
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“Developing a port for the future involves not only maintaining competitive global gateways but also expanding economic opportunities across our region,” Port of Seattle Commissioner Sam Cho said in a press release. “The capital investments in this plan will support SEA Airport’s efforts to achieve 5-star service standards. On the waterfront, these investments will increase facility capacity, enhance waterfront access and infrastructure and advance our sustainability initiatives.”
Founded in 1911, the Port of Seattle is a public agency that manages several of the city’s sea and airports, including Seattle-Tacoma International Airport (SEA), Fisherman’s Terminal, cruise ship terminals, real estate and marine cargo terminals. The port’s entities represent an economic powerhouse in the Pacific Northwest, contributing over $41 billion to the regional economy through SEA operations, commercial fishing, international maritime trade and cruises.
Seeking to modernize the city’s economic hubs, the Port of Seattle Commission’s approval of the 2025 budget will support the port’s commitment to maintaining a competitive edge in global markets. The 2025 budget, allocated $1.1 billion, is designed to promote economic opportunity, consider climate change action and address the challenges of a rapidly changing global economy.
The port, specifically, will boost investments in the Duwamish Valley Community Equity Program, support the creation of green jobs and educational initiatives and expand career pathways through programs like Maritime High School and pre-apprenticeships. The budget will also fund sustainability through projects such as shore power at Pier 66, collaborate on the Green Economy Feasibility study, expand tourism grants and implement a childcare project for airport workers.
Some additional funding measures outlined in the 2025 budget:
$20.4 million to 16 community-based programs.
$19.4 million to advance environmental stewardship.
$2.2 million to promote local tourism initiatives.
$2 million to improve the consumer experience at SEA.
The port’s recently-adopted CIP, which spans from 2025 through 2029, is the largest infrastructure investment in the port’s history at $5.6 billion. The plan will address the growing demand across the port’s aviation, maritime and real estate operations, while supporting sustainability initiatives and decarbonization efforts.
The CIP will provide nearly $5 billion in funding for airport infrastructure projects, including upgrades at SEA’s S Concourse, main terminal and C Concourse, optimized baggage handling systems and additional capital improvements to vital aviation infrastructure.
For maritime entities, the CIP will invest almost $1 billion over the next five years to develop Seattle ports’ infrastructure and expand regional cruise operations and tourist attractions. Seaport funding will encompass Seattle’s maritime industry, advance facility and terminal expansions and fulfill contractual obligations with its sister agency in the Northwest Seaport Alliance – the Port of Tacoma.
Through these long- and short-term capital improvements, the port intends to proactively contribute to several local initiatives, poised to improve port operations and efficiency, enhance consumer experiences and enact transformative climate action.
As one of CIP’s main priorities, the Port of Seattle will intensify efforts to reduce greenhouse gas emissions and mitigate the effects of climate change. The CIP and 2025 budget include projects to eliminate industrial waste, remove asbestos-ridden infrastructure, maintain stormwater facilities, develop alternative power resources and decarbonize operations in airports and seaports.
Between the CIP’s aviation and maritime divisions, officials anticipate the CIP will generate over 170,000 new jobs and almost $30 billion in future business revenues.
Updated tax levy and 2025-2029 CIP funding sources
For King County residents, the Port of Seattle will implement an updated tax levy for county property owners. Following the Port Commission’s annual levy review, the new tax rate for homeowners, about $10 per $100,000 in property value, will represent a two percent increase from the port’s total preliminary levy of $86.7 million in 2024.
This tax levy increase will fund an array of port-led initiatives, such as environmental justice, workforce development, economic growth, tourism and community-oriented programs. However, primarily, this property tax funding will support the port’s Environmental Legacy Fund, a climate change action initiative that will utilize over $100 million to address and mitigate historical industrial pollution in port operations over the next decade.
The Port of Seattle’s CIP outlines additional funding sources that will advance the port’s values, projects and goals over the next few years, including general bond issuances, facility fees, grants and capital contributions, interest receipts and fuel hydrant receipts. The CIP’s largest funding source, over $1.1 billion in operating revenue, represents over half of the port’s expected funds so far.
As for the use of funds, the Port of Seattle plans to spend over $1.1 billion in capital and NWSA expenditures, over $700 million in operating and public expenses and nearly $500 million in bond redemptions and interest payments.
The port’s capital investments are designed to ensure that its infrastructure can meet the needs of the future. By 2029, the port expects to achieve critical milestones in its efforts to modernize its facilities, support local businesses and advance state and local goals for sustainability and decarbonization.
“We will continue to invest boldly in our facilities and our people to ensure we can accommodate the increasing demand,” Port of Seattle Executive Director Steve Metruck said in a press release. “We are also continuing to work to create a port that is resilient in the face of the world’s complex challenges like decarbonization, both in aviation and maritime sectors.”
Photo courtesy Sea Cow, CC BY-SA 4.0 https://creativecommons.org/licenses/by-sa/4.0, via Wikimedia Commons
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