The Connecticut Port Authority (CPA) has reached an agreement with Gateway New London LLC for the long-term operation of State Pier.
According to a statement, a rigorous selection process was carried out to decide how State Pier, located in New London, could be best used, and which partner would have the capability to deliver expanded economic opportunity to the state.
As part of the 20-year agreement, which stipulates that Gateway will begin operations on May 1, 2019, there is an option for the CPA to extend the concession for two additional ten-year periods.
In addition to this, the new contract states that an annual fixed fee of US$500,000 must be paid to the CPA, increasing by $250,000 every five years.
Sean Strawbridge discusses how America's energy is being moved in a recent Port Technology technical paper
The CPA will also receive a 7% variable fee of Gateway’s gross revenues at State Pier, with a minimum annual guarantee of $500,000 included in the agreement.
Scott Bates, Chairman of the CPA, said: “Gateway shares the CPA’s vision for strengthening Connecticut’s maritime economy and creating new jobs through expanded operations at State Pier.
“We look forward to working with our new partners to increase the movement of conventional cargo through our ports, while simultaneously capturing the opportunities presented by emerging markets.
“This is a welcome balance as we look to better leverage Connecticut’s unique maritime assets. We are confident this selection presents the best future for State Pier and the taxpayers of Connecticut.”
Connecticut Port Authority has selected Gateway as new operator of New London State Pier
“Gateway shares the CPA’s vision for strengthening Connecticut’s maritime economy and creating new jobs through expanded operations at State Pier,” said @ScottBatesCT, Chairman of the CPA pic.twitter.com/AEtyDYPT2P
— Connecticut Ports (@CTPortAuthority) January 7, 2019
Achieving the potential of State Pier is the top priority of the 2018 Connecticut Maritime Strategy, which will see the CPA work closely with Gateway to invest funds received following the recent Purchase Power Agreement.
The agreement presents an opportunity to expand the port’s role as an economic driver, by increasing the overall traffic flowing through this key entry point.
Larry Smith, founder of Gateway Terminal, also commented: “We are excited to partner with the Connecticut Port Authority to operate and expand State Pier.
“Our partnership not only positions New London as a potential offshore wind hub for the north-eastern United States, but also supports the local harbour community and existing uses, which we believe will expand when we begin our operations.”