The restructured lease will create nearly 800 new jobs – including 350 construction jobs, and will generate 1,450 overall jobs over the term of the lease. It also will guarantee an annual increase in cargo container volumes from Mediterranean Shipping Company (MSC), the world’s second largest shipping company.
The restructured PNCT lease calls for a 20-year extension of the existing lease through 2050 in order to expand the terminal through a $500 million private capital investment and secure a long-term strategic commitment with MSC. The lease provides guarantees from both PNCT and MSC that will dramatically increase cargo volumes at the port – from 414,000 today to 1.1 million containers by 2030. In addition, the lease would expand the terminal’s facility by more than 100 acres – from 180 acres to approximately 287 acres.
Port Authority Chairman David Samson said, “With $500 million in private investment, nearly 800 new jobs and guarantees to increase cargo volumes, the lease agreement is a win-win for the Port Authority and the entire regional economy. Governor Christie made a commitment to increase the competitiveness of our ports and the ability to secure the world’s second largest shipper as our newest tenant demonstrates the economic value of that commitment.”
Mediterranean Shipping Company Deputy Chairman Diego Aponte said, “The Port Authority is making the right investments as port competition continues to intensify. The investment and growth strategy under the leadership of Governors Andrew Cuomo and Chris Christie paved the way for this lease agreement and underscores their commitment to positioning the port to lead the competition. We make this move with confidence in the Port Authority’s leadership and look forward to making Port Newark MSC’s new home at this time of record growth for our company.”
Port Authority Executive Director Chris Ward said, “This is a big deal for our port. It guarantees an increase in cargo volume, secures a major anchor tenant at our port and leverages half a billion dollars of private investment to create a state-of-the-art container terminal. This transaction will create new jobs and help keep the Port of New York and New Jersey the largest and most competitive port on the East Coast. Under Governor Cuomo’s leadership, the Port Authority is attracting new business, driving growth and generating new job opportunities to the benefit of the entire region.”
Deputy Executive Director Bill Baroni said, “The world’s second largest shipper selecting Port Newark as its new home sends a signal to the entire industry and drives economic growth throughout the region. We welcome this news and the capital investment, new jobs, and other guarantees it brings with it.”
Port Authority Commissioner Raymond M. Pocino, Vice President/Eastern Regional Manager, Laborers International Union of North America, said, “This lease agreement demonstrates the tangible benefits that come with investing in growth. During these challenging economic times, the 350 construction jobs and thousands of other jobs the agreement will generate over the course of the lease is welcome news for workers and businesses throughout the region that will benefit from this positive economic growth action by the Port Authority.”
Port Newark Container Terminal has been a terminal operator at the port since 2000 and currently operates on a 180-acre terminal facility under a lease that expires in November 2030. Today’s Board action provides a 20-year extension that would run through November 2050, subject to Port Newark Container Terminal’s investment of $500 million during that period. As part of the agreement, the Port Authority will enter into an agreement with Mediterranean Shipping Company, which will provide for the shipping line to annually increase its cargo container volumes through November 2030.