Maersk and the Port Authority of New York and New Jersey (PANYNJ) will continue their long-lasting partnership well into the second half of the 21st century. The two companies agreed to extend the lease of the APM Terminals Elizabeth’s lease by 33 years through December 2062. The extension comes several years ahead of the current contract expiring in 2029.
The early renewal paves the way for significant infrastructure investments to further expand the port’s capacity and transport speed. Recent modernization efforts at the facility have already brought in $200m, including two state-of-the-art ZPMC Super-Post Panamax ship-to-shore (STS) cranes.
The proposed deal is now awaiting final approval from the Port Authority’s Board of Commissioners later this week.
“We are deeply honored 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, APM Terminals.
The APM Terminals’ facility accounts for 25 percent of annual container volume at the port and employs more than 1,110 workers of the International Longshoremen’s Association (ILA). The expansion plans are set to create additional jobs and support U.S. economic growth.
The operation at the port set new records for throughput in 2024. It is the second-largest container terminal on the U.S. East Coast.
“Working side-by-side with the ILA, the extension will allow us to continue our investment in the terminal to support jobs and the growth of the local economy for many years to come,” said Henrik Kristensen, Managing Director, APM Terminals Elizabeth.
Upgrades will include the optimization of the terminal layout and electrification of the container handling operation.
“APM Terminals has been a trusted partner at the port for decades, and we’re eager to build on that strong foundation as we push towards our shared goals of growing this gateway’s productivity, efficiency, and dependability for the good of the region and the nation,” said said Port Authority Chairman Kevin O’Toole.