The Port of Los Angeles reached an agreement with ocean carrier Yang Ming to extend its lease at the West Basin Container Terminal (WBCT) by an additional nine years, Los Angeles Mayor Antonio Villaraigosa announced yesterday.
The lease, which was set to expire in 2021, now extends to 2030. The pact will generate additional port revenue of between $365 million and $525 million, depending on cargo volumes, Villaraigosa said in a press release.
In conjunction with the lease extension, Villaraigosa signed a memorandum of understanding in Beijing to expand and modernize the port's Yang Ming terminal facilities. As part of the agreement, the port will invest $122 million in WBTC improvements, including the construction of a new 1,260-linear-foot wharf, 53-foot dredge at the newly constructed wharf and an expansion of the West Basin Intermodal Container Transfer Facility.
A partnership between Yang Ming, China Shipping, and Ports America, WBTC is served by BNSF Railway Co. and Union Pacific Railroad. The terminal includes a rail yard featuring three loading tracks that can accommodate 27 five-platform, double-stack rail cars.
"This agreement will allow the largest, most modern ships to call at Yang Ming and provide cargo growth over the next 17 years," said Villaraigosa.
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