The Port Authority of New York and New Jersey has reached a 33-year lease extension agreement with Maersk's APM Terminals for the port's second-largest container terminal. This move underscores Maersk's confidence in the port's future and its commitment to supporting long-term growth.
The lease extension, set for a board vote on March 27, introduces a novel approach by embedding performance, infrastructure, and sustainability criteria within the contract. This strategy aims to enhance the terminal's capacity to manage increasing cargo volumes while maintaining high standards of customer service and environmental responsibility.
Port Authority Executive Director Rick Cotton highlighted the significance of this agreement, stating that it will facilitate greater goods movement, job creation, and reinforce the port's pivotal role in the regional economy and national supply chain.
Maersk's current lease, set to expire in December 2029, will now run through December 2062. APM Terminals, which currently manages over 25% of the port's annual container throughput, has already begun upgrading the facility with four new gantry cranes delivered in November 2024.
Under the new terms, APM Terminals will invest over $500 million to boost cargo-handling capabilities at its 350-acre terminal. This includes replacing and maintaining wharf and berth structures, expanding into adjacent land for productivity gains, and committing to future capacity expansions based on demand.
The agreement also emphasizes sustainability, with APM Terminals pledging to introduce zero-emission cargo-handling equipment. This aligns with the Port Authority's goal of achieving net-zero emissions by 2050, supported by tariffs that encourage cleaner technology adoption.
These investments are consistent with the Port Authority's Port Master Plan 2050, which projects cargo volumes to double or triple by mid-century. The collaboration between the Port Authority and APM Terminals exemplifies a shared vision for sustainable growth and infrastructure development in one of the nation's busiest ports.
