The Port Authority of New York and New Jersey announced a landmark 33-year lease extension with APM Terminals, the operator of the Port of New York and New Jersey's second-largest container terminal.

The agreement includes major investments and capacity enhancements by APM Terminals at its container terminal, setting a new framework for container terminal agreements and further strengthening the East Coast's busiest port to meet rising cargo demand. APM Terminals is an independent division of Denmark-based A.P. Mller - Mrsk, an integrated logistics company.

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 Authority Board of Commissioners will vote on the lease extension at its meeting on March 27. APM Terminals' new lease extends the term through December 2062, from its current expiration in December 2029, and requires payment to the Port Authority of an extension fee and modified annual rental payments.

As part of the agreement, APM Terminals will invest over $500 million over the coming years to enhance cargo-handling capacity at its 350-acre terminal. APM Terminals has also committed to the replacement and maintenance of all wharf and berth structures.

This investment supports the Port Authority's Port Master Plan 2050, which anticipates cargo volumes doubling or tripling by mid-century. APM Terminals has also committed to future capacity enhancements driven by demand. Additionally, the Port Authority and APM Terminals will expand the lease to include portions of an adjacent parcel of land to APM Terminals for enhanced productivity.

Source: Port Authority of New York and New Jersey

 

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