OOCL agrees $4.6 billion lease for Long Beach container terminal
Hong-Kong based shipper agrees 40-year lease for 3 million TEU capacity terminal
The Port of Long Beach has reached a tentative US$4.6 billion agreement with Orient Overseas Container Line (OOCL) for the 40-year lease of its planned new container terminal.
The Middle Harbor container terminal, part of the US port’s ambitious Middle Harbor Project, will have an annual capacity of 3.1 million TEUs when fully completed in 2021.
OOCL, the world’s 12th largest ocean carrier, and its terminal operating sister company, Long Beach Container Terminal (LBCT), are currently finalizing the deal with Long Beach Port officials, according to the JOC.
Chris Lytle, Long Beach Port’s Executive Director, said that the new terminal will include the state-of-the-art intermodal and deep water facilities needed to compete in today’s competitive market.
“This is an extremely competitive business. It’s time to be bold,” he said.
Lytle added that the new Middle Harbor Terminal will be one of the most highly-automated and environmentally friendly container terminals in the US, which if classed as a stand-alone port would rank as the fourth largest in the country.
The first phase of the 305-acre Middle Harbor project is scheduled to be completed in 2016.
Despite OOCL having a global fleet of 84 owned and chartered ships, LBCT President Anthony Otto said that the Hong-Kong based shipper will now look for prospective partners to help in the operation of the terminal.
“Long Beach Container Terminal (LBCT) will look to OOCL’s partners in the Grand Alliance as well as to third-party business, or possibly an additional partner, to fully utilize the facility,” Otto told the JOC.
The first half of the new terminal will be built on the site of the old California United Terminal (CUT), which has now moved to neighboring Los Angles.