Biggest ever US port deal for Long Beach
January 24, 2012
The Californian port of Long Beach has reached a tentative agreement on a 40-year, $4.6 billion lease with Orient Overseas Container Line (OOCL), one of the world’s largest transport and logistics companies.
The contract would be the largest deal of its kind for any US seaport, said Port of Long Beach Executive Director Christopher Lytle.
“This agreement represents a major endorsement of our vision for the port by one of the leading maritime companies in the world.”
The port is investing $1.2 billion to develop the new 300-acre-plus Middle Harbor terminal. OOCL and Long Beach Container Terminal (LBCT) will invest approximately $500 million in the latest cargo-handling equipment, which will double existing capacity.
The Middle Harbor terminal is projected to generate more than 14,000 new jobs throughout Southern California by 2020.
The port also claims the terminal will be the greenest in North America, cutting air pollution in half through the use of on-dock rail, electrified cargo-handling equipment and shore power.
Meanwhile, Hong Kong-headquartered OOCL saw volumes and revenue fall in the final quarter of 2011 and full-year revenue decline, according to its unaudited operational update.
Q4 volumes were down 2% on the same period last year at 1.2 million teu, with revenue slumping 11.2% to US$1.3 billion.
Over the full year, volumes were up 5.6% year on year to five million teu, but revenues fell 1.5% to $5.6 billion, with overall average revenue per teu down 6.7%.
Courtesy of IFW
