The New York-New Jersey Port Authority Board of Commissioners on Tuesday, June 14, approved a restructured lease with Port Newark Container Terminal that will provide $500 million in private capital investment to upgrade the existing facility into a state-of-the-art terminal. The parties say the restructured lease will create nearly 800 new jobs, including 350 construction jobs, and will generate 1,450 overall jobs over the term of the lease, while guaranteeing an annual increase in cargo container volumes from Mediterranean Shipping Co., the world’s second-largest shipping company.
“This is a big deal for our port,” says Chris Ward, port authority executive director. ”It guarantees an increase in cargo volume, secures a major anchor tenant at our port and leverages half a billion dollars of private investment to create a state-of-the-art container terminal. This transaction will create new jobs and help keep the Port of New York and New Jersey the largest and most competitive port on the East Coast.”
The restructured PNCT lease calls for a 20-year extension of the existing lease through 2050 in order to expand the terminal through a $500 million private capital investment and secure a long-term strategic commitment with MSC. The lease provides guarantees from both PNCT and MSC that will increase cargo volumes at the port from 414,000 today to 1.1 million containers by 2030. In addition, the lease would expand the terminal’s facility by more than 100 acres, from 180 acres to about 287 acres.
“The port authority is making the right investments as port competition continues to intensify,” says Diego Aponte, MSC deputy chairman. “We make this move with confidence in the port authority’s leadership and look forward to making Port Newark MSC’s new home at this time of record growth for our company.”
Port Newark Container Terminal has been a terminal operator at the port since 2000 and currently operates on a 180-acre terminal facility under a lease that expires in November 2030. The board’s action provides a 20-year extension that would run through November 2050, subject to Port Newark Container Terminal’s investment of $500 million during that period. As part of the agreement, the port authority will enter into an agreement with MSC, which will provide for the shipping line to increase its cargo container volumes annually through November 2030.