In a deal contingent upon a $500 million facility upgrade, the Port Authority Board of Commissioners today approved an extended lease for Port Newark Container Terminal that includes a guarantee the world’s second-largest shipping company will call the port home.
According to the port authority’s release, the restructured lease will extend PNCT’s lease another 20 years, through 2050, and increase the size of PNCT’s site from 180 acres to 287 acres.
The lease allows PNCT to expand and upgrade its facility through a $500 million private capital investment that’s anticipated to create 1,450 jobs over the course of the lease, including 350 construction jobs. It also clears the way for an agreement between the port authority and Mediterranean Shipping Co. that provides the shipping line to guarantee it will increase its cargo volume through the port each year through 2030, from 414,000 containers a year to 1.1 million. Mediterranean is the world’s second-largest shipping company, according to the port authority.
Bill Baroni, deputy executive director of the agency, said the announcement “sends a signal to the entire industry and drives economic growth throughout the region.”
PNCT has been an operator at the port since 2000.