The Port Authority of New York and New Jersey announced that its Board of Commissioners voted to amend existing leases with Global Container Terminals Inc. (GCT) for container terminals at the agency's Staten Island and Bayonne marine facilities in light of the acquisition of the two terminals by the French shipping company CMA CGM.
This would pave the way for significant facility improvements and increased capacity to move containerized cargo through the Port of New York and New Jersey’s facilities on Staten Island, N.Y., and in Bayonne, N.J.
In a statement, Port of NY/NJ said the amended leases allow one of the world's largest shipping companies to assume operations at GCT's container terminal at the Port Jersey-Port Authority Marine Terminal in Bayonne, known as GCT Bayonne, and at GCT's container terminal at the Howland Hook Marine Terminal on Staten Island, known as GCT New York.
CMA CGM announced its intent to acquire GCT's assets in New York and New Jersey in December 2022.
Port of NY/NJ updated leases include increases in rent based on container throughput, CMA CGM assuming full responsibility for wharf and berth repair and replacement, and substantial facility investments to increase container capacity.
"This lease agreement marks the beginning of a new chapter at two of our key container terminals," said Kevin O’Toole, chairman of the Port Authority. "We look forward to working with CMA CGM as these facilities reach their full potential, bringing even more jobs and economic growth to power the region."
"We welcome CMA CGM as a key partner in the operation of two of our marine terminals, and look forward to working closely with CMA CGM in the future vigorous development of our seaports," commented Rick Cotton, executive director at the Port Authority.
"This deal with CMA CGM reflects the trust and confidence of our business partners in our port's ability to move cargo efficiently and reliably," Cotton added.
As part of the amended agreements, CMA CGM will pay increased rent based on container throughput, subject to a minimum annual guarantee, and will share revenue from excess container storage.
Additionally, CMA CGM will assume full responsibility for maintaining and rebuilding wharf and berth structures, as well as increasing capacity to meet demand, at both facilities.
Port of NY/NJ said CMA CGM will align with key Port Authority initiatives relating to sustainability and diversity.
Specifically, CMA CGM has committed to the Port Authority's goal of achieving net-zero greenhouse gas emissions by 2050, including upgrading to zero-emissions material handling equipment and promoting renewable energy.
CMA CGM has also committed to contracting goals for minority-owned, women-owned, and service-disabled veteran-owned businesses, and to maximizing the use of locally owned businesses.
CMA CGM will collaborate with the Port Authority around priorities such as safety and security, innovation, customer experience, key performance standards, and enhanced reporting on terminal activities.
The Port Authority has had a longstanding relationship with CMA CGM, welcoming the CMA CGM Brazil to a terminal in the Elizabeth-Port Authority Marine Terminal in 2020 as the largest container ship ever to call on the port and the U.S. East Coast.
Terms of the lease amendments are effective pending the successful acquisition of assets between GCT and CMA CGM.
Port of NY/NJ said the amended container terminal lease agreements will further bolster the seaport's position as a vital gateway for imported goods in the United States, where it is the first port of call for the vast majority of container ships arriving in the East Coast from overseas.
Both marine facilities are connected to the Port Authority’s on-dock ExpressRail intermodal network, which are served by two major freight railroads with links to destinations up and down the East Coast, eastern Canada, and the U.S. Midwest.
