In a bid to focus more on expansion and investment opportunities at the ports of Los Angeles, Long Beach and Tacoma, Ports America has made a decision to terminate its 50-year concession at the Port of Oakland, according to the Wall Street Journal.
Jock O’Connell, an International Trade Economist, said: “Ports America may have decided they’re going to put their money where their volumes are.
“All of this plays into the decisions of terminal operators as to where they’re going to concentrate future investments. You determine where your growth potential is greatest and with limited resources for investing in new equipment, you make your investments accordingly.”
Ports America recently announced that it will take over the intermodal responsibilities at the Port of Baltimore in order to take advantage of the anticipated volume growth on the back of the completed expansion of the Panama Canal.
The Panama Canal is due to be completed in H2, 2016.