the staff of the Ridgewood blog
Elizabeth NJ, the Port Authority of New York and New Jersey has approved a 33-year lease extension with APM Terminals for its Elizabeth waterfront complex, ensuring long-term stability for one of the busiest container terminals on the East Coast. The agreement, which extends through 2062, will see APM invest over $500 million into the 350-acre terminal, modernizing operations and advancing sustainability efforts.
A Major Investment in Green Technology and Infrastructure
As part of the lease extension, APM Terminals, an independent division of Denmark-based A.P. Møller – Mærsk, will focus on sustainability and efficiency. The company plans to upgrade to zero-emission cargo-handling equipment, introduce electric terminal tractors, and implement cold-ironing technology. Cold-ironing allows docked ships to plug into onshore power sources, reducing reliance on diesel engines and cutting emissions.
The investment will also support infrastructure upgrades, including the restoration of wharf and berth structures. The financial responsibility for replacing these critical structures by 2045 will now rest entirely on APM, marking a significant shift from previous agreements where the Port Authority covered such costs.
Expanding Capacity for Growing Cargo Demand
In addition to infrastructure improvements, the lease introduces a performance-based rent system. Under this model, APM’s rent will depend on the volume of goods moved through its facilities, with minimum container lift requirements set in place. By 2030, APM must increase capacity to handle at least 200,000 additional lifts annually.
To enhance productivity, APM will also expand its footprint at the port by acquiring an additional 3-acre parcel at 1180 McLester Street in Elizabeth. This space will be used to support terminal operations and maintenance functions, further optimizing port efficiency.
Securing the Future of the Port and Local Economy
The Port of New York and New Jersey remains a key hub for global trade, ranking as the second busiest port in the U.S. in 2023 after a significant increase in cargo movement. Port Authority officials view this lease extension as a crucial step in maintaining the port’s competitive edge while ensuring it remains a stable and reliable choice for shippers.
Bethann Rooney, Port Director at the Port Authority, emphasized the long-term benefits of the agreement:
“This agreement delivers long-term certainty for the port, its customers, and the entire supply chain. With APM Terminals’ commitment through 2062, we are solidifying the Port of New York and New Jersey as a stable, reliable choice for shippers—one that is well-positioned to handle growing cargo demand while maintaining its reputation for world-class efficiency and service.”
Labor Relations and Continued Growth
APM Terminals has been a presence at the ports of New York and New Jersey for over a century, making it the ports’ longest-serving ocean carrier. The lease extension aligns with recent labor agreements that have helped avoid disruptions, such as the deal reached in January between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance, which prevented a potential strike.
Henrik Kristensen, Managing Director of APM Terminals Elizabeth, reiterated the importance of the lease extension in supporting job growth and economic development:
“Working side-by-side with the ILA, the extension will allow us to continue our investment in the terminal to support jobs and the growth of the local economy for many years to come.”
With this landmark agreement in place, the Port Authority and APM Terminals are poised to drive innovation, sustainability, and economic growth in the region for decades to come.
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