NEWARK-The Port Authority Board of Commissioners has approved a restructured lease with the Port Newark Container Terminal that will provide a $500 million upgrade and 100-acre expansion through private capital investment.
Port Newark Container Terminal (PNCT) has operated at a 180-acre facility at the port since 2000 on a lease that expired in November 2030. The restructured lease extends the current agreement through 2050 contingent on PNCT’s investment of $500 million over that period. It will create nearly 800 new jobs, including 350 construction jobs, and will generate 1,450 overall jobs over the term of the lease.
“With $500 million in private investment, nearly 800 new jobs and guarantees to increase cargo volumes, the lease agreement is a win-win for the Port Authority and the entire regional economy,” says Port Authority chairman David Samson in a statement. “Governor Christie made a commitment to increase the competitiveness of our ports and the ability to secure the world’s second largest shipper as our newest tenant demonstrates the economic value of that commitment.”
For its part, the Port Authority enters into an agreement with the Mediterranean Shipping Company (MSC), the world’s second largest shipping company, to increase its volumes annually from 414,000 containers per year today to 1.1 million containers by 2030.
“The Port Authority is making the right investments as port competition continues to intensify,” Mediterranean Shipping Company deputy chairman Diego Aponte says. “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.”
The deal comes at a time when a number of East Coast ports, including Savannah, GA, Charleston, SC, and Norfolk, VA, are planning or in the midst of major growth in anticipation of the Panama Canal expansion completion. “This is a big deal for our port. 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,” Port Authority executive director Chris Ward says. “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.”
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