Port of Long Beach to close new deal with OOCL

This represents the largest deal of its kind for any U.S. seaport
By Patrick Burnson, Executive Editor
January 23, 2012 - LM Editorial

The Port of Long Beach has reached a tentative agreement on a 40-year, $4.6 billion lease with Orient Overseas Container Line (OOCL)  for the Middle Harbor property, in what would be the largest deal of its kind for any U.S. seaport, Port of Long Beach Executive Director J. Christopher Lytle announced.

The agreement will go to the Long Beach Board of Harbor Commissioners’ Finance and Administration Committee today for review.

Meanwhile, the lease has been agreed to in principle by Hong Kong-based OOCL and its U.S. subsidiaries OOCL, LLC and Long Beach Container Terminal (LBCT).

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.

According to Anne Landstrom, principal advisor for the port consultancy, Moffatt & Nichol, this represents a trend.

“Additional infrastructure improvements are being made to accommodate an expected increase in U.S. exports as well as inbound cargo,” she told LM. “This is particularly true of agricultural products.”

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.

The new terminal will effectively double the existing capacity by utilizing the most advanced cargo-handling technology in the world.  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.



About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

For the fourth quarter of 2014, UPS said it anticipates adjusted diluted earnings per share of roughly $1.25, with full-year 2014 adjusted diluted earnings per share at $4.75, which represents a 3.9 percent annual gain over 2013’s adjusted earnings per share of $4.57, with full-year 2014 diluted earnings pegged at around $3.28 per share, which is 28.9 percent below 2013’s $4.61.

In recently issued research and data, JLL pointed out that its market data indicates rents are on the rise, with companies on the hunt for warehouse and distribution space.

U.S. Carloads were up 0.3 percent annually at 290,963, and intermodal at 260,893 containers and trailers dropped 2.4 percent compared to the same week last year.

Researchers say the ships are operating in international waters with a "worrying lack" of regulation, adding that they could pose a threat to regional peace and stability.

Compared to November, spot market freight volume was up 3.0 percent, according to the DAT North American Freight Index.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA