New York takes action on DP World terminal sale, on-dock rail
The Port Authority of New York and New Jersey board last week authorized its executive director to consent to proposed transfers of leases and changes of ownership interests at port facilities such as the Port Newark Container Terminal being sold by Dubai Ports World to an affiliate of AIG insurance.
The director could make such consents 'after appropriate due diligence — including a review of the proposed tenant's integrity, financial capacity and operational ability, and the ability to make capital investments at the facility.'
The action capped a week of negotiations in which AIG’s affiliate — a firm called Ports American Inc. — agreed to make capital expenditures of a minimum of $50 million in the Port Newark Container Terminal during the life of its investment, including $10 million for rail infrastructure near the terminal.
At its monthly board meeting, the port authority also:
* Authorized agreements with Consolidated Rail Corp., Norfolk Southern Railway Co., and CSX Transportation Inc., to provide for maintenance and operation of the on-dock ExpressRail Corbin Street Intermodal Rail Support Facility, and the ExpressRail Elizabeth lead tracks, and construction of Phase 1B of the support facility. The agreement also calls for Conrail to surrender its existing lease for 28 acres west of Corbin Street at the Elizabeth-Port Authority Marine Terminal, which is needed to build the rail support facility.
* Authorized a lease with Windmill Distributing Co. L.P., doing business as Phoenix Beverages Inc., for the use of Pier 7 at the Brooklyn-Port Authority Marine Terminal. The lease provides for the use of about 269,600 square feet of warehouse space and about 185,315 square feet of open area on Pier 7 for a 15-year term with an option to extend the lease for a five-year period.
