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A.P. Moller-Maersk and the Port Authority of New York and New Jersey agreed to extend APM Terminals Elizabeth’s lease through December 2062
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Originally set to expire in 2029, the lease extension marks a milestone in the company’s partnership with the port, which dates back over a century
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The 33-year lease extension paves the way for major infrastructure investments which will enhance capacity and transport velocity
A.P. Moller-Maersk and the Port Authority of New York and New Jersey have agreed to extend APM Terminals Elizabeth’s lease through December 2062. Originally set to expire in 2029, the lease extension marks a milestone in the company’s partnership with the port, which dates back more than a century.
The 33-year lease extension paves the way for major infrastructure investments which will enhance capacity and transport velocity, create jobs and strengthen the US economy. The proposed deal is subject to approval by the Port Authority Board of Commissioners on March 27.
Keith Svendsen, CEO, APM Terminals, in a statement said: “We look forward to the Board confirming the agreement and continuing our work with the Port Authority to be an engine of commerce and contribute to the prosperity of the communities we serve.”
APM Terminals Elizabeth now handles over 25% of the annual container throughput in the port complex, supported by more than 1,100 members of the International Longshoremen’s Association (ILA).
Throughout the previous lease, APM Terminals has invested in infrastructure and equipment, including a recent additional investment of $200 million to modernize the terminal.
These investments, along with the efforts of the ILA, have ensured uninterrupted operations throughout the period of the COVID-19 shutdowns, benefiting customers, truckers, and other stakeholders to keep the region’s supply chain moving.
Henrik Kristensen, Managing Director, APM Terminals Elizabeth, said: “This lease extension will be another milestone for APM Terminals, which moved record volumes for the port in 2024. Working side-by-side with the ILA, the extension will allow us to continue our investment in the terminal to support jobs and the growth of the local economy for many years to come.”
Looking ahead, APM Terminals envisions a larger, more efficient container terminal. The company is committed to significant future investments to enhance the capacity and efficiency for its customers. Planned upgrades include the optimization of the terminal layout, electrification of container handling equipment, and future-proofing container berths.
Port Authority Chairman Kevin O’Toole said: “This landmark agreement with APM Terminals underscores the essential role the Port of New York and New Jersey will continue to play in powering the regional and national economy.”
“APM Terminals has been a trusted partner at the port for decades, and we’re eager to build on that strong foundation as we push towards our shared goals of growing this gateway’s productivity, efficiency, and dependability for the good of the region and the nation.” O’Toole added.
This lease extension secures transformative infrastructure and capacity enhancements at the second-largest container terminal in the East Coast’s busiest port, according to Port Authority Executive Director Rick Cotton.
