A.P. Moller - Maersk and Port of New York and New Jersey Reach Agreement on Lease Extension for APM Terminals Elizabeth

A.P. Moller - Maersk and the Port Authority of New York and New Jersey (PANYNJ) have agreed to extend APM Terminals Elizabeth's lease through December 2062. Originally set to expire in 2029, the lease extension marks a significant milestone in the company’s enduring partnership with the port, which dates back over a century. The 33-year lease extension paves the way for major infrastructure investments which will enhance capacity and transport velocity, create jobs and strengthen the US economy. The deal was approved by the Port Authority Board of Commissioners on March 27.

“We are deeply honored and grateful for Chairman Kevin O’Toole and Executive Director Rick Cotton’s support to extend our lease at APM Terminals Elizabeth,” said Keith Svendsen, CEO, APM Terminals. “We look forward to the Board confirming the agreement and continuing our work with the Port Authority to be an engine of commerce and contribute to the prosperity of the communities we serve.”

Investments for the future

APM Terminals Elizabeth currently handles over 25% of the annual container throughput in the port complex, supported by more than 1,100 members of the International Longshoremen’s Association (ILA). Throughout the previous lease, APM Terminals has consistently invested in infrastructure and equipment, including a recent additional investment of $200 million to modernize the terminal. These investments, along with the tireless efforts of the ILA, have ensured uninterrupted operations throughout the period of the COVID-19 shutdowns, benefiting customers, truckers, and other stakeholders to keep the region’s supply chain moving.

“This lease extension will be another milestone for APM Terminals, which moved record volumes for the port in 2024,” said Henrik Kristensen, Managing Director, APM Terminals Elizabeth. “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.”

Looking to the future, APM Terminals envisions a larger, more efficient container terminal. The company is committed to significant future investments to enhance the capacity and efficiency for its customers. Planned upgrades include the optimization of the terminal layout, electrification of container handling equipment, and future-proofing container berths. These efforts will support the export of goods to foreign markets, contributing to the local and national economy, and creating numerous job opportunities to support the growth of the local community.

Building on strong foundations

“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 Terminals 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.”