New lease sees terminal operator pay crane rental in advance to finance port’s contribution to channel dredging.
Under a new agreement with the Jacksonville Port Authority SSA Marine will extend its current container operation at Jaxport, which operates as Jacksonville International Gateway Terminal, from 40 acres to 80 acres, with the option to expand up to 120 acres as space becomes available.
In an announcement JAXPORT said the long-term agreement (25-years with two five-year option extensions) will see US$238.7M invested to develop the terminal. “The facility will offer a vessel turning basin and deepwater access of 47 feet upon completion of the Jacksonville Harbour Deepening project, which is ahead of schedule and expected to be complete in 2023 based on continued funding from all partners”.
The deal features two separate lease agreements: a “Facilities Lease Agreement” and an “Equipment Lease Agreement”. The facilities lease is expected to generate between $158M and $298M for the port over the life of the lease from volume fees, wharfage and other charges.
The equipment lease covers three 100ft ZPMC cranes purchased by the port in 2016. With a “unique and creative solution” SSA Marine will pay Jaxport US$28M over three years for use of the cranes over the full 25-year agreement. JAXPORT will continue to provide crane maintenance and upgrades five years, the cost of which will be passed back to SSA marine.
The crane lease is part of US$129.7M in funds SSA Marine will contribute to the terminal, including adding three more STS cranes when demand requires. JAXPORT will complete $109 million in berth rehabilitation and upgrades ,which are already underway and will allow the terminal to simultaneously accommodate two post-Panamax vessels.
“We are thrilled to partner with a major international terminal operator that is as dedicated as we are to contributing to the economic vitality of Northeast Florida,” said JAXPORT CEO Eric Green. “The significant investments SSA Marine has committed to this facility, accompanied by their unparalleled industry knowledge and experience, allows us to take full advantage of all of the opportunities the Jacksonville Harbour Deepening project creates for our port and our region.”
“SSA Marine has a longstanding commitment to Jacksonville and we are proud to invest in this community in such a meaningful way,” said SSA Conventional President Mark Knudsen. “The port’s strong leadership team and strategic location in the growing southeast U.S. market—combined with the efficiencies created by a deeper harbour— give us the tools we need to operate a world-class container terminal and further position Jacksonville as a gateway for global trade.”