The Port Authority of New York and New Jersey has finalized a 33-year lease extension with Maersk’s APM Terminals.
The agreement, which extends the lease until December 2062, includes a commitment from APM Terminals to invest over $500 million in infrastructure upgrades, capacity expansion, and sustainability initiatives at its Elizabeth, New Jersey facility.
The lease extension is set to be reviewed by the Port Authority’s board on March 27. The contract integrates performance, infrastructure, and sustainability requirements, ensuring the terminal is prepared for increasing cargo volumes while improving customer service and environmental impact.
APM Terminals, which currently manages over 25% of the total container throughput at the Port of New York and New Jersey, had its original lease set to expire in December 2029.
The newly extended lease provides long-term stability for both the terminal operator and the port.
Under the agreement, APM Terminals will:
- Invest over $500 million in infrastructure improvements.
- Upgrade cargo-handling capacity at its 350-acre terminal.
- Replace and maintain all wharf and berth structures for long-term efficiency.
- Expand its lease to include portions of adjacent land, boosting productivity.
- Implement future capacity enhancements as cargo demand rises.
The company has already started making improvements, with four new gantry cranes arriving in November 2024 to support cargo-handling operations.
The Port Authority has emphasized that this agreement will lead to major improvements at the second-largest container terminal in the port.
According to the agency, securing long-term commitments from terminal operators ensures continued growth, job creation, and economic benefits for the region.
A senior official from the Port Authority said that this lease extension will help the port move more goods, create more jobs, and strengthen its role in the national supply chain.
The lease extension aligns with the Port Master Plan 2050, which anticipates that cargo volumes at the port could double or even triple by mid-century.
As part of the agreement, APM Terminals has committed to investing in zero-emission cargo-handling equipment over the coming years.
Additionally, the terminal operator will adhere to the port’s marine terminal tariff, which promotes the use of cleaner equipment as advanced technology becomes commercially available.
Reference: apmterminals