OOCL, the Hong Kong-based shipping company, held a signing ceremony with the Port of Long Beach (POLB) this week for the 40-year US$4.6 billion lease of the Middle Harbor container terminal at the Southern California port.
Executives from OOCL and the POLB convened in Hong Kong on Tuesday to formally sign off on the port’s biggest ever lease agreement.
OOCL CEO, Philip Chow, and Chris Lytle, Executive Director of the Port of Long Beach signed the agreement in front of representatives from OOCL, the POLB, and the International Longshore and Warehouse Union (ILWU).
“I can’t overstate the significance of this agreement,” Lytle.
“It is the largest and most far-reaching terminal lease ever at the Port of Long Beach.”
Following the announcement of an impending deal by Long Beach officials in January of this year, the Long Beach Harbor Commission unanimously approved the ordinance on its first reading in March.
The Middle Harbor terminal is set to undergo a $1.2 billion redevelopment, which will see the integration of both Pier’s F and E into one container terminal.
LBCT and OOCL will also provide an additional $500 million to supply the 305-acre site with the latest terminal handling equipment, according to Long Beach officials.
“The Middle Harbor Redevelopment Project is our flagship model for the ‘Port of the Future,’” added Lytle.
The terminal, expected to be completed by 2021, will provide the region of Southern California with up to 14,000 jobs and will boast an annual capacity of $3.1 million TEU.