New York Construction Report staff writer
The Port Authority of New York and New Jersey this week announced funding to expand and upgrade the Howland Hook Marine Terminal on Staten Island, creating more than 300 construction jobs and improve infrastructure.
The $200-$300 million investment from the facility’s new operator, global shipping and logistics company CMA CGM is the largest in the facility’s history – was secured through an amended lease agreement with the Port Authority.
CMA CGM will pay increased rent based on container throughput, subject to a minimum annual guarantee, and will share revenue from excess container storage. Additionally, CMA CGM will assume full responsibility for maintaining and rebuilding wharf and berth structures, as well as increasing capacity to meet demand.
The funder has committed to contracting goals for minority-owned, women-owned, and service-disabled veteran-owned businesses, and to maximizing the use of locally-owned businesses, benefitting Staten Island residents and businesses.
In addition, CMA CGM will collaborate with the Port Authority to meet priorities such as safety and security, innovation, customer experience, key performance standards, and enhanced reporting on terminal activities.
“Business is booming at the Port of New York and New Jersey, and this amended lease agreement at our Staten Island terminal will ensure that this area and the community reap the benefits of an energetic and fully mobilized port facility,” said Port Authority Chairman Kevin O’Toole said. “A renovated, reenergized Howland Hook means more capacity, more activity, and more economic growth for the region.”
The lease, running through 2047, will bring capacity enhancements, infrastructure improvements, and sustainability upgrades, allowing the facility to further build on its rich maritime history, as well as its legacy of economic development and substantial job opportunities for Staten Island.
