Ceres to invest $60 million in JAXPORT container terminal
North American terminal operator Ceres will invest millions to modernize a 158-acre container terminal that connects Jacksonville to destinations in Asia and South America.
On 14 February, the JAXPORT Board of Directors unanimously approved a 20-year, $60 million agreement between Ceres Terminals and JAXPORT for the lease and modernization of the TraPac Jacksonville container terminal in Jacksonville, Florida.
In a separate transaction, Ceres will purchase the terminal’s previous leaseholder, terminal operator TraPac Jacksonville, LLC from Mitsui O.S.K Lines, Ltd. (MOL), subject to closing conditions.
Details of the private transaction, including purchase price, have not been disclosed.
Subject to completion of the sale, Ceres will begin operating the 158-acre container facility located at JAXPORT’s Dames Point Marine Terminal on 1 March.
“We are excited about our long-term commitment to JAXPORT and the local community. Our significant investment in Dames Point Terminal provides an excellent gateway for South Atlantic-based distribution centers, well into the future,” Craig Mygatt, Ceres Terminals CEO, commented.
The agreement includes a $45 million lease with JAXPORT. Ceres will also make $15 million in terminal upgrades, including investments in cargo handling equipment and systems.
JAXPORT’s largest single-tenant operated facility by acreage, TraPac Jacksonville features two 1,200-foot-long berths and six post-Panamax container cranes. Along with the existing Asian and South American services, the facility recently accommodated Hapag-Lloyd’s AL3 European container service, which rerouted to JAXPORT for nine weeks to avoid US port congestion.
“The ongoing supply chain disruption underscores the significance of this agreement and the importance of the capabilities offered by the TraPac Jacksonville facility,” Eric Green, JAXPORT CEO, said.
“When we put together JAXPORT’s Strategic Master Plan, our focus was growing cargo volumes and the private sector jobs they support. This agreement is a major step forward in the evolution of that plan. We thank MOL for their partnership over the years and look forward to growing the economic impact this facility has on our community under its new ownership with Ceres.”
An existing JAXPORT tenant, Ceres has also operated the JAXPORT intermodal yard (ICTF) at Dames Point, adjacent to the TraPac terminal, since it opened in 2016.
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