Tuesday, August 27, 2013

Environmental Review Begins for Yang Ming Terminal

The Port of Los Angeles said Aug. 27 that its initiating the environmental review process on a proposed berth-improvement project at the port by Taiwanese marine transport company Yang Ming.

The start of the environmental process, which is expected to formally begin this fall, is the first step in Yang Ming's plan to enhance its terminal facilities and deepen its berth to accommodate 14,000-TEU vessels and increase cargo volume.

Executives from Yang Ming and the Port of LA signed a term sheet agreement in May to perform a number of key improvements expected to enhance the Yang Ming terminal facilities. As part of the agreement, the port plans to invest $122 million in improvements at the terminal, including construction of a new 1,260 linear foot wharf at Berths 126-129, 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 terminal is a partnership between Yang Ming, China Shipping and Ports America.

Yang Ming’s current lease at the West Basin Container Terminal ends in 2021, but this agreement will extend the lease to 2030, and is expected to deliver between $365 and $525 million in revenue to the port, depending on cargo volumes.

The $122 million enhancement of the Yang Ming terminal facilities is a component of LA’s five-year, $1.2 billion investment plan to update terminals, increase rail capacity and deepen its main channel.