Outer Harbor Terminal to Close by End of April Pending Court Clearance
- Business & Finance
Outer Harbor Terminal LLC, one of five privately operated marine terminals at the California-based Port of Oakland, now expects to close on April 29, provided the bankruptcy court approves the lease termination agreement between the operator and the port.
Namely, the marine terminal operator and the port agreed on Friday to terminate their 50-year-lease deal signed in 2009.
The port’s governing Board of Port Commissioners approved the agreement and it will now be reviewed by a bankruptcy judge in Delaware overseeing Outer Harbor Terminals LLC’s request for bankruptcy protection.
The bankruptcy decision was made in January, when Outer Harbor Terminals said it plans to close its Oakland operation.
“We’re not pleased to see a terminal close, but this agreement helps ensure a smooth transition for our customers,” said Port of Oakland Maritime Director John Driscoll.
“All of our attention now is on efficiently migrating their cargo to the other terminals in Oakland.”
Following the termination of the lease, the Outer Harbor Terminal is obliged to continue Oakland vessel and cargo operations through March 31 and pay about USD 6 million in February and March rent to the port.
Additionally, the terminal operator agreed to clean up debris and remove equipment on the 166-acre property and pay the port an amount of USD 5.1 million for additional clean-up and repairs.
Port of Oakland said it will provide free rent in April to ensure Outer Harbor Terminal remains open for cargo operations until the shutdown.
The port has already developed a plan to move ships and cargo to adjacent terminals when Outer Harbor Terminal closes. The port also started implementing a USD 1.5 million program to extend gate hours at port terminals.