The Port Authority of New York and New Jersey has reached a 33-year lease renewal agreement with APM Terminals, a subsidiary of Maersk, for the port’s second-largest container terminal. The deal includes significant investments by APM Terminals in its Elizabeth, New Jersey facility to support the port’s long-term growth plans.

The renewal, set for approval by the Port Authority Board on March 27, incorporates a unique contractual structure that ties performance, infrastructure upgrades, and sustainability targets to the lease. This approach aims to ensure the terminal can handle growing cargo volumes while prioritizing customer service and environmental goals. Similar long-term agreements have recently been finalized with other terminal operators at the port.

Port Authority Executive Director Rick Cotton stated, “This renewal secures transformative infrastructure and capacity upgrades for the East Coast’s busiest port. These commitments will enable the port to move more goods, create jobs, and strengthen its role as a critical economic engine for the region and national supply chain.”

APM Terminals’ current lease expires in December 2029, with the renewal extending operations to December 2062. The terminal currently handles over 25% of the port’s annual container volume and has already invested in upgrades, including four new ship-to-shore cranes arriving in November 2024.

As part of the agreement, APM Terminals will invest over $500 million to modernize cargo-handling capacity, replace aging berth structures, and expand operations into adjacent land to boost productivity. The company also committed to future throughput increases based on demand.

The deal mandates investments in zero-emission cargo equipment and aligns with the Port Authority’s tariff system, which incentivizes cleaner technologies as they become commercially viable. These efforts support the agency’s goal of achieving net-zero emissions by 2050.

The investments under the agreement are consistent with the Port Authority’s 2050 Port Master Plan, which anticipates cargo volumes doubling or tripling by mid-century.