The Port Authority of New York and New Jersey has secured a significant 33-year lease extension with APM Terminals, the operator of the port’s second-largest container terminal, reports Port Authority of New York and New Jersey.
Improved Cargo Handling
APM Terminals, a A.P. Møller – Mærsk division, has extended its lease with the Port Authority of New York and New Jersey.
This lease extension is unique because it includes performance, infrastructure, and sustainability requirements. It ensures the terminal can handle increased cargo volumes while focusing on customer service and environmental responsibility.
This agreement, along with similar long-term deals with other major port tenants, is crucial for the port’s growth, enhancing supply chain confidence, and solidifying its position as a reliable and efficient goods gateway.
New Jersey Governor Phil Murphy emphasized the port’s importance to the regional and national economy, highlighting its role in delivering goods and creating jobs.
Port Authority Chairman Kevin O’Toole stressed the long-standing partnership with APM Terminals and their shared goals of improving the port’s productivity, efficiency, and reliability.
Port Authority Executive Director Rick Cotton noted that the lease extension will facilitate transformative infrastructure and capacity improvements, enabling the port to move more goods, create more jobs, and strengthen its economic contribution.
Stronger Collaboration
The Port Authority Board of Commissioners will vote on the lease extension with APM Terminals on March 27th.
The new lease extends APM Terminals’ term until December 2062, from its current expiration in December 2029, and includes an extension fee and adjusted annual rental payments to the Port Authority.
APM Terminals will invest over $500 million to increase cargo-handling capacity at its 350-acre terminal and will replace and maintain wharf and berth structures.
This investment aligns with the Port Authority’s Port Master Plan 2050, which forecasts a doubling or tripling of cargo volumes by mid-century.
APM Terminals has also committed to future capacity enhancements based on demand and will expand its lease to include adjacent land for improved productivity.
APM Terminals will work towards achieving net-zero greenhouse gas emissions in its operations, supporting the Port Authority’s goal of agency-wide net-zero emissions by 2050.
They will invest in zero-emission cargo-handling equipment, complying with the Port Authority’s marine terminal tariff, which encourages the adoption of cleaner technology.
The agreement also fosters stronger collaboration between the Port Authority and APM Terminals on safety, security, innovation, customer experience, performance standards, and enhanced reporting on terminal operations.
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Source: Port Authority of New York and New Jersey
