Marine transport company Yang Ming has agreed to extend its
lease at the Port of Los Angeles for an additional nine years, the port
revealed May 30. Yang Ming’s current lease at the West Basin Container Terminal
ends in 2021; with this agreement, the lease is extended to 2030.
“I am happy this agreement will allow the largest, most
modern ships to call at Yang Ming and provide cargo growth over the next 17
years,” Los Angeles Mayor Villaraigosa said. “The port is an economic driver
for our region, and its success translates to jobs here in Los Angeles.”
The extension represents additional port revenues of between
$365 and $525 million, depending on cargo volumes, according to the port.
In conjunction with the lease extension, Villaraigosa on May
28 signed a Memorandum of Understanding while in Beijing on a trade mission.
The MOU provides for the expansion and modernization of the LA port’s Yang Ming
terminal facilities. As part of the agreement, the port is required to invest
$122 million in improvements at the terminal, including: construction of a new
1,260 linear foot wharf at Berths 126-129; the dredging to a depth of minus-53
feet at the newly constructed wharf; and expansion of the West Basin Intermodal
Container Transfer Facility.
The West Basin Container Terminal is a partnership between
Yang Ming, China Shipping and Ports America.
“This agreement and lease extension ensures that West Basin
Container Terminals will increase its global competitiveness with expanded
facilities to handle more cargo,” Port of LA Executive Director Geraldine Knatz
said in a statement. “The Port had been making progress on these negotiations,
but it was this trade mission and the Mayor’s leadership that closed this important
deal.”
China is Los Angeles’ number one trading partner,
representing 39.4 percent of LA’s total global trade numbers. In 2012, China’s
total trade with the LA Customs District was over $159 billion, according to
the City of Los Angeles.
