Port of NY & NJ Approves Takeover of Two Prime Container Terminals

The board of the Port Authority of New York and New Jersy has signed off on CMA CGM's plans to take over operations at two key container terminals, GCT Bayonne and GCT New York (Howland Hook). 

The updated port leases increase the rent based on container throughput, give CMA CGM responsibility for wharf and berth repairs, and outline large-scale facility investments that will increase throughput. 

“We welcome CMA CGM as a key partner in the operation of two of our marine terminals, and look forward to working closely with CMA CGM in the future vigorous development of our seaports,” said Port Authority Executive Director Rick Cotton.  

CMA CGM has agreed to work in line with the port's sustainability goals, including its target to reach net-zero GHG emissions by 2050. Related measures include switching its material-handling equipment to zero-emissions technology, supporting renewable energy use and maximizing content from local businesses. 

The French ocean carrier announced its plans to acquire the two terminals from GCT in December. Taken together, the facilities can handle about two million TEU per year, and CMA CGM believes it can nearly double their capacity with the right investments. The Bayonne terminal is the most automated in the port and can handle vessels up to 18,000 TEU in size. 

The two terminals will remain multi-user facilities, and CMA CGM plans to retain the current management team, the firm said.