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.
