China: OOCL, POLB Ink 40 Year Terminal Lease Agreement

OOCL and the Port of Long Beach held a signing ceremony for a 40 year container terminal lease with The Port of Long Beach (POLB) in Hong Kong today.

Known as the Middle Harbor Redevelopment Project (MHRP), the agreement will enable OOCL to develop a state-of-the-art modern terminal with the latest automation technologies that will essentially triple the handling capacity of its current terminal at Long Beach and cutting environmental emissions by half.

Mr. Philip Chow, Chief Executive Officer of OOCL and Mr. Chris Lytle, Executive Director of the Port of Long Beach signed the agreement in front of representatives from OOCL, the POLB, and International Longshore and Warehouse Union (ILWU).

Speaking at the event, Mr. Chow said: “This land-lease agreement has been many years in the making and without the support of the citizens of Long Beach, the government, ILWU, Harbor Commission, and all those who believe in the many benefits that this project will bring to the city and region, this day could have been possible. So I take this opportunity to sincerely thank all our friends, partners, and the City of Long Beach for your trust in OOCL, working together to ensure the Middle Harbor Redevelopment Project is a success.”

In his address at the ceremony, Mr. Lytle said: “OOCL has been a valued Port of Long Beach business partner for many decades. The historic agreement we sign today strengthens and continues that partnership for many decades to come. I cannot overstate the significance of this agreement. The Middle Harbor property is key to the future competitiveness of the Port of Long Beach. In fact, we call it our model for the ‘Port of the Future.’ And we could not have a better partner in this effort than OOCL.”

“This is a really a big deal,” said Ms. Susan Wise, President of the Long Beach Board of Harbor Commissioners. “It is a 40 year lease that will generate billions of dollars of revenue for the port over its lifetime. And, we have the best partner we could have in OOCL. OOCL is always a leader in our Green Flag low steaming program, and have even donated their rebates under that program back to our local community. Through this agreement, we are able to foster all of the port’s goals. We can ensure that our port remains competitive. We will develop an efficient, technologically-advanced terminal at Middle Harbor. We can provide thousands of jobs along with all the commercial activity that trade fosters and we can be green, reducing the adverse effects of port operations on nearby communities and the world.”

In his comments to the MHRP, Long Beach Mayor Bob Foster said: “The Long Beach Container Terminal and OOCL have been model corporate citizens and I applaud their commitment to be a positive presence here in Long Beach for many years to come. This lease, which sets the industry standard for both technological advancement and environmental stewardship, is a reflection of OOCL’s commitment to the Long Beach area as its gateway of choice and I congratulate them on their forward-thinking and partnership with the community. I look forward to seeing all the stakeholders work together as this project comes to fruition.”

[mappress]

Source: OOCL, April 4, 2012