Port Authority of New York and New Jersey Extends Lease with APM Terminals

The Port Authority of New York and New Jersey and Maersk’s APM Terminals have reached a significant agreement to extend the lease for the port’s second-largest container terminal in Elizabeth, New Jersey. This 33-year extension marks a strategic move to support the port’s long-term growth plan through substantial investments in infrastructure and sustainability initiatives.

The lease extension, set to be approved by the Port Authority’s board on March 27, incorporates performance, infrastructure, and sustainability requirements into the contract. This unique approach aims to ensure that the terminal can efficiently handle increasing cargo volumes while prioritizing customer service and environmental sustainability. Similar long-term extensions have recently been secured with other terminal operators as well.

Port Authority Executive Director Rick Cotton expressed enthusiasm about the lease extension, stating, “This lease extension secures transformative infrastructure and capacity enhancements at the second-largest container terminal in the East Coast’s busiest port. These commitments will enable the Port of New York and New Jersey to move more goods, create more jobs, and further cement its role as an essential driver of our region’s economy and our nation’s supply chain.”

The extension, which extends the current lease through December 2062, comes as Maersk’s APM Terminals plans to invest over $500 million in enhancing cargo-handling capacity at the 350-acre terminal. The company has already introduced four new gantry cranes in November 2024 and is committed to replacing and maintaining all wharf and berth structures. Additionally, the lease will be expanded to include adjacent land for improved productivity, with future capacity enhancements planned based on demand.

APM Terminals will also focus on investing in zero-emission cargo-handling equipment in line with the Port Authority’s sustainability goals. The terminal operator will adhere to the Port Authority’s marine terminal tariff, which encourages the adoption of cleaner equipment as new technology becomes available, aligning with the agency’s aim to achieve net-zero emissions by 2050.

These investments align with the Port Authority’s Port Master Plan 2050, which anticipates a significant increase in cargo volumes by mid-century. The collaboration between the Port Authority and APM Terminals underscores a commitment to enhancing operational efficiency, environmental sustainability, and economic growth within the region’s vital maritime industry.