APL, Port of Oakland sign long-term pact
Lease extension, renovation for Middle Harbor Terminal
OAKLAND, July 26, 2006 – Global container shipping leader APL today announced an agreement to keep its vessels calling the Port of Oakland for decades to come.
Executives of APL and the Port of Oakland finalized a 15-year lease extension for APL’s Middle Harbor Terminal in Oakland. With two subsequent five-year options, the agreement propels the APL-Oakland global trade partnership well into the 21st century.
“Oakland and Middle Harbor Terminal are critical to the growth of U.S. trade with Asia,” said John Bowe, President of the Americas Region for APL. “I’m proud that we’ll be part of that growth for a long time.”
“Billions of dollars worth of trade moves in and out of the country through the Port of Oakland every year,” pointed out Jerry Bridges, Executive Director of the Port. “It’s a huge responsibility and we’re pleased to continue sharing the load with APL.”
The lease signing is APL’s second major long-term commitment to the city of Oakland in the past year. In 2005 APL signed a 10-year lease extension for its downtown office space at 1111 Broadway.
“We’re proud of our presence in Oakland,” said Bowe, “and pleased that our future here is secured.”
APL opened Middle Harbor Terminal at the Port of Oakland in 1974. As part of its new lease agreement, the Port of Oakland will renovate the terminal over the next three years. The construction project will:
- Modernize the terminal to accommodate the latest technology;
- Improve efficiency; and
- Increase annual container handling capacity from 170,000 lifts to 460,000 lifts to prepare for future growth.
“The renovation is all part of our West Coast growth strategy,” said Chuck Savre, APL’s Vice President of Operations in the Americas. “Thanks to our agreement with the Port of Oakland, we can prepare Middle Harbor Terminal to help APL and its customers meet their growth needs for years to come.”
Middle Harbor Terminal is one of three major marine terminals managed by APL on the U.S. West Coast. The others are Global Gateway South, at the Port of Los Angeles; and Global Gateway North, at the Port of Seattle. All three serve ships in APL’s global network.
Container vessels from Europe, China, Japan, Hong Kong, South Korea and Taiwan call at Middle Harbor Terminal each week.
The terminal employs up to 200 longshore workers a day and processes about 239,000 cargo containers annually laden with cargo valued at more than $5 billion.
APL employs more than 700 people in Oakland when its downtown office work force is included. Its annual payroll in the city surpasses $90 million.
APL is a global container transportation company offering more than 60 weekly services and nearly 300 calls at more than 90 ports in Asia, Europe, the Middle East and the Americas. It combines world-class intermodal operations with leading edge IT and e-commerce. APL is a unit of Singapore-based Neptune Orient Lines (NOL), a global logistics and transportation company. APL Web site: www.apl.com