APM Terminals and the Port Authority of New York & New Jersey have extended the lease on the terminal operator’s Port Elizabeth facility for 33 years.
Due to expire in 2029, the lease will now run until December 2062, provided it is approved by the port authority board of commissioners, which is due to vote on the deal on Thursday.
“We are deeply honoured and grateful for chairman Kevin O’Toole and executive director Rick Cotton’s support to extend our lease at APM Terminals Elizabeth,” said Keith Svendsen, CEO of APMT.
“We look forward to the board confirming the agreement and continuing our work with the port authority to be an engine of commerce and contribute to the prosperity of the communities we serve,” he added.
Mr Cotton said: “This lease extension secures transformative infrastructure and capacity enhancements at the second-largest container terminal in the east coast’s busiest port.
“These commitments will enable the port to move more goods, create more jobs, and further cement its role as an essential driver of our region’s economy and our nation’s supply chain,” he added.
The port authority explained that that the lease agreement incorporated a range of metrics APMT needs to fulfill alongside rental payments.
“Its lease extension takes the unique, non-traditional approach of incorporating performance, infrastructure, and sustainability requirements into the contract, ensuring steps are taken to enable the terminal to handle growing cargo volumes while prioritising customer service and sustainability,” said the authority.
“This extension, along with similar long-term agreements with other major tenants at the port, is a key step in growing the port’s business, building confidence across the supply chain and solidifying the port of New York and New Jersey’s position as a reliable, efficient gateway for goods.”
The port handled 8.7m teu last year, an 11% increase over 2023, with APMT’s Port Elizabeth accounting for around 25% of that overall volume.
Last year it completed a $200m investment programme which saw new quay cranes, among other projects, and APMT said more was to come. It said: “Planned upgrades include the optimisation of the terminal layout, electrification of container handling equipment, and future-proofing container berths.”
The facility is a key hub for the Gemini Cooperation carriers – according to the eeSea liner database, it serves two transatlantic Gemini routes, the North Europe-North America AL1 service and Mediterranean-North America Med-ECNA bridge, as well as three Asia-North America east coast strings, the US1, US2 and US4.
It is also serving three Asia-North America east coast strings still operating under the 2M Alliance, and the Ocean Alliance’s PSW3 Asia-North America east coast service.
In addition, it is the New York call for several North America-South America regional services, operated independently by Hapag-Lloyd, CMA CGM and Maersk, as well as the US military sealift UMX/MECL1 service, jointly operated by CMA CGM subsidiary APL and Maersk’s US-flagged fleet, that runs between the US and the Middle East.
