Maritime Newsletter

NY-NJ Port Authority Acquires Global Terminal - 2010-07-05

The Port Authority of New York and New Jersey acquired the 98-acre Global Terminal on the Port Jersey peninsula in Jersey City and Bayonne. The acquisition will allow the terminal to expand its container-handling facilities onto adjacent port authority property on the site of the former Northeast Auto Terminal, turning it into a 170-acre terminal. The expansion of Global Terminal to the east will enable it to extend its existing 1,800-foot berth by 700 feet, which Devine estimated will take three years to complete. Under the Global agreement, the Port Authority takes ownership of the Global property and in turn opens a 37-year lease agreement with Global under which the terminal operator will develop the former Northeast Auto Terminal property into one new container terminal known as the Global Container Terminal as part of the Port Jersey-Port Authority Marine Terminal facility. Global will then handle the day-to-day cargo operation on the much larger footprint. The lease agreement calls for revenue sharing on containers handled by Global on the 170-acre combined facility and staged rental payments as the terminal is developed over time. In addition, the Port Authority will provide Global with up to $150 million to develop and construct new container terminal space. The Port Authority also has agreed to develop an ExpressRail facility on the adjacent Greenville Yards in Jersey City that the port authority’s board authorized it to buy and redevelop last month. The expanded rail yard could handle up to 250,000 containers per year. Source: joc.com