Port Reaches Tentative $4.6B Lease Agreement
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The Port of Long Beach
is investing $1.2-billion
to develop the new 300-acre-plus
Middle Harbor terminal.
LONG BEACH, CA-The Port of Long Beach has reached a tentative agreement on a 40-year, $4.6-billion lease with Orient Overseas Container Line for the Middle Harbor property, in what would be the largest deal of its kind for any US seaport, according to Port of Long Beach executive director J. Christopher Lytle. The agreement will go to the Long Beach Board of Harbor Commissioners' Finance and Administration Committee on Monday, Jan. 23, for review.
The lease has been agreed to in principle by Hong Kong-based OOCL and its US subsidiaries OOCL, LLC and Long Beach Container Terminal, according to a prepared statement. The Middle Harbor terminal is projected to generate more than 14,000 new, permanent jobs throughout Southern California by 2020.
The Port is investing $1.2-billion to develop the new 300-acre-plus Middle Harbor terminal, while OOCL and LBCT will invest approximately $500 million in the latest cargo-handling equipment, says a statement.
The lease would secure a tenant for the Middle Harbor Redevelopment Project, which combines Pier F and E into one state-of-the-art container terminal. LBCT has occupied Pier F since 1986 and will operate the Middle Harbor Terminal.
According to Long Beach Harbor Commission president Susan E. Anderson Wise, “This proposed agreement will enable the Port of Long Beach to maintain its competitive edge while bringing many benefits to the community.”
The new terminal will double the existing capacity by utilizing the most advanced cargo-handling technology in the world, according to a statement. “It will also be the greenest terminal in North America, cutting air pollution in half through the use of more on-dock rail, electrified cargo handling equipment and shore power, which allows vessels to draw electricity from a landside utility when docked rather than diesel-powered auxiliary engines,” according to a statement.
OOCL ships have a near 100% participation in the Port’s Green Flag Program, which provides rebates to vessel operators that slow down in and near the Port to cut down on air pollution, according to a statement.
Categories: West, Industrial, Green Buildings, Leasing, Los Angeles
Natalie Dolce Natalie Dolce, editor of the West Coast region for GlobeSt.com and Real Estate Forum, is responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, Natalie was Northeast bureau chief, covering New York City for GlobeSt.com. Dolce’s background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats Arthur Frommer’s Budget Travel magazine, FashionLedge.com, Co-Ed magazine, and has also freelanced for a number of publications including MSNBC.com and Museums New York magazine. Contact Natalie Dolce.
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