The Port Authority of New York and New Jersey (Port Authority) will extend its operating lease agreement with APM Terminals by 33 years, “securing major investments and capacity enhancements” at its second-largest container terminal while establishing “a new framework for P3s (public-private partnerships)” and “strengthening its ability to handle growing cargo demand.” The Port Authority Board of Commissioners is expected to approve the agreement March 27.
Upon approval, APM Terminals, an independent division of Denmark-based, integrated logistics company A.P. Møller – Mærsk, will have a new lease term through December 2062, extending its current expiration in December 2029. The agreement requires payment to the Port Authority of an extension fee and modified annual rental payments. The lease extension, the Port Authority said, “takes the unique, nontraditional approach of incorporating performance, infrastructure and sustainability requirements into the contract, ensuring steps are taken to enable the terminal to handle growing cargo volumes while prioritizing customer service and sustainability. This extension, along with similar long-term agreements with other major tenants at the port, is a key step in growing the port’s business, building confidence across the supply chain and solidifying the Port of New York and New Jersey’s position as a reliable, efficient gateway for goods.”
As part of the agreement, APM Terminals will invest more than $500 million over the coming years to enhance cargo-handling capacity at its 350-acre terminal. APM Terminals has also committed to replacement and maintenance of all wharf and berth structures. This investment “supports the Port Authority’s Port Master Plan 2050, which anticipates cargo volumes doubling or tripling by mid-century,” the Port Authority noted. “APM Terminals has also committed to future capacity enhancements driven by demand. Additionally, the Port Authority and APM Terminals will expand the lease to include portions of an adjacent parcel of land to APM Terminals for enhanced productivity.”
APM Terminals “has pledged to achieve net-zero greenhouse gas emissions in its operations and support the Port Authority’s goal of reaching net zero agency-wide by 2050,” the Port Authority added. “APM Terminals will invest in zero-emission cargo-handling equipment over the coming years. As a Port Authority lessee, the terminal operator is also subject to the Port Authority’s marine terminal tariff, which incentivizes the adoption of cleaner equipment as new technology becomes commercially available. The agreement also strengthens collaboration between the Port Authority and APM Terminals on key priorities, including safety and security, innovation, customer experience, performance standards, and enhanced reporting on terminal operations.”
With this lease extension, most of the Port of New York and New Jersey’s major tenants are now secured under long-term agreements — APM Terminals through 2062, Port Liberty Bayonne and New York through 2047, and Port Newark Container Terminal through 2050. “This long-term certainty strengthens the port’s position as a stable, reliable hub for global trade and provides terminal operators with the confidence to make long-term investments,” the Port Authority said.
“This landmark agreement with APM Terminals underscores the essential role the Port of New York and New Jersey will continue to play in powering the regional and national economy,” said Port Authority Chairman Kevin O’Toole. “APM has been a trusted partner at the port for decades, and we’re eager to build on that strong foundation as we push towards our shared goals of growing this gateway’s productivity, efficiency, and dependability for the good of the region and the nation.”
“This lease extension secures transformative infrastructure and capacity enhancements at the second-largest container terminal in the East Coast’s busiest port,” said Port Authority Executive Director Rick Cotton. “These commitments will enable the Port of New York and New Jersey to move more goods, create more jobs, and further cement its role as an essential driver of our region’s economy and our nation’s supply chain.”
The Port of New York and New Jersey is the busiest port on the East Coast and among the top three busiest in the U.S. as the first East Coast port of call for most transatlantic container vessels. In 2024, it handled approximately $264 billion worth of goods, moving 8.7 million TEUs (twenty-foot equivalent units). Port operations supported more than 563,000 industry jobs in the New York-New Jersey-Pennsylvania region, according to a study of 2022 maritime economic activity by the Shipping Association of New York and New Jersey.
