Port of Oakland awards 50 year operating concession to Ports America affiliate
Ports America Oakland is a partnership between Ports America and Terminal Investments Limited ('Terminal Investments'), an affiliate of Mediterranean Shipping Company, the second largest container shipping company in the world.
Ports America, with 85 years experience, is the largest independent American terminal operator, stevedore and port-side vehicle processor, with operations in 50 ports and 97 terminals. Ports America is controlled by Highstar Capital, a leading value added infrastructure investor, with over $15 billion of infrastructure investments made to date, primarily in the United States.
The first phase of Ports America Oakland's operational plan includes the investment of up to $150 million to upgrade 160 acres within the Port of Oakland, comprising some 4,400 feet of berth. This investment is expected to create over 6,000 jobs within the Bay Area and Ports America estimates that it is likely to help to preserve an additional 85,000 jobs regionally.
Ports America Oakland's bid also includes a comprehensive environmental plan to supplement the Port of Oakland's ongoing program to significantly improve air quality in the San Francisco Bay area.
In addition, during the life of its operational stewardship at the Port of Oakland, Ports America Oakland plans to invest significant additional capital to improve the competitiveness of the port for the benefit of its many served communities and customers. These investments are expected to aggregate to over $500 million, resulting in the creation of up to 12,000 direct and 240,000 indirect jobs.
Commenting on the Oakland Concession, Ports America CEO Stephen Edwards stated, "On behalf of Ports America and our partner, Terminal Investments, we are extremely excited to work with the Port of Oakland to help implement their vision in taking this major American port to its fullest potential, now and for the long term future. We also very much appreciate the Port of Oakland's confidence in us as the leading American port operator, including delivering the very best possible operational, environmental and financial commitment to our customers, partners, employees and the communities we serve."
Highstar Capital's Founder and Managing Partner Christopher Lee added, "The Oakland Concession is a very significant milestone for both the future of the Port of Oakland and the competitiveness of our West Coast ports generally. I salute the Port of Oakland Board of Commissioners and our partner, Terminal Investments, for sharing their vision and faith in the future of the US ports business with Ports America and Highstar."
Ports America was advised on the Oakland Concession by Goldman Sachs and Cleary, Gottlieb, Steen and Hamilton.