SSAT, MEDITERRANEAN SHIPPING TO MOVE TO LONG BEACHÆS PIER A
SSAT Long Beach, a unit of Stevedoring Services of America, has signed a letter of intent to lease the Port of Long Beach's 170-acre Pier A container terminal. The terminal operator has also signed Mediterranean Shipping to move from the Port of Los Angeles to Pier A.
SSAT Long Beach expects to take over operation of Pier A, located north of Terminal Island and the port's largest shipping facility, in the third quarter of 2002, after its current operator, Hanjin Shipping Co., vacates the facility.
Hanjin will move to a new container terminal under construction on Terminal Island that's scheduled to open by July 2002. Hanjin's 375-acre Pier T terminal will surpass Pier A as the port's largest shipping terminal.
SSA Long Beach, upon completion of a formal lease to be approved by the Long Beach Board of Harbor Commissioners, will lease Pier A for 25 years, paying the port a minimum of $19 per year, or nearly $500 million during the 25 years.
SSAT Long Beach also reached a separate 25-year contract with Geneva-based Mediterranean Shipping, a relative newcomer to the transpacific trade, to make the switch from Los Angeles and operate at Pier A terminal.