The Sacramento-Yolo Port Commission, which operates the Port
of West Sacramento, has negotiated a new master lease of its West Sacramento
maritime facilities with terminal operator SSA Pacific. The new lease, which
takes effect July 1, 2013, replaces an existing terminal operations management contract
between the two parties.
The new master lease shifts all maritime-related operational
expenses to SSA. The port says this now enables it to reduce administrative
costs and focus on development of its real estate assets.
“We’re redefining and redesigning the port and this is a
critical first step,” Port Commission Chair Mike McGowan said during the
commission’s May 15 meeting.
The lease is for a minimum of five years and can be extended
by five-year increments to a maximum of 20 years. Minimum annual rent payments
to the port start at $650,000, however the lease provides for additional
revenues to the port as shipping tonnage increases.
Also part of the agreement, the port is relieved of $850,000
in existing debt to SSA, and SSA agrees to purchase the port’s existing air
credits related to bulk cargo handling for $50,000.
“The new lease arrangements will allow SSA to further expand
our role, attract new investment, and increase business through the port, which
will be good for the City of West Sacramento and increase jobs in the area,”
SSA President Mark Knudsen said in a statement.
