Maersk and the Port Authority of New York and New Jersey (PANYNJ) have agreed to extend APM Terminals Elizabeth’s lease through December 2062.
The deal was originally set to expire in 2029, but the lease extension marks a significant milestone in the company’s partnership with the US port, which dates back over 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, according to the statement.
The proposed deal is subject to vote by the Port Authority Board of Commissioners on 27 March.
Keith Svendsen, CEO of APM Terminals, commented: “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 currently handles over 25% of the annual container throughput in the port complex.
Throughout the previous lease, APM Terminals has consistently invested in infrastructure and equipment, including a recent additional investment of US$200 million to modernize the terminal.
“This lease extension will be another milestone for APM Terminals, which moved record volumes for the port in 2024,” said Henrik Kristensen, Managing Director of APM Terminals Elizabeth. “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.”
Among planned upgrades are the optimization of the terminal layout, electrification of container handling equipment, and future-proofing container berths.
Port Authority Chairman Kevin O’Toole stated: “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.”
