FRENCH shipping giant CMA CGM has committed an unspecified sum to container yard improvements at the two marine terminals it will own in New York Harbour, reports New York's Journal of Commerce.
CMA CGM's agreement to acquire two marine terminals in the Port of New York and New Jersey includes terms that require the carrier to bear more of the maintenance costs and share demurrage revenue with the port authority.
Having passed federal muster, the PANYNJ's agreeing to the new lease leases for the Bayonne, New Jersey, and Howland Hook, New York marine terminals, these are the final terms to close the deal.
The port authority said the new leases require that CMA CGM bear 'full responsibility for wharf and berth maintenance,' including the 'participation of the port authority in demurrage revenues.'
PANYNJ chief development officer Derek Utter told the board commissioners during that demurrage sharing was a 'windfall protection tied to excess container storage revenue.'
The port authority's capital plan projects that the wharfs and berths at the Bayonne site will need US$43.4 million worth of rehabilitation and replacements through 2026. Mr Utter did not say how much CMA CGM will be required to cover, but noted wharf and berth maintenance 'will over time fully shift to become CMA CGM obligation.'
SeaNews Turkey
CMA CGM's agreement to acquire two marine terminals in the Port of New York and New Jersey includes terms that require the carrier to bear more of the maintenance costs and share demurrage revenue with the port authority.
Having passed federal muster, the PANYNJ's agreeing to the new lease leases for the Bayonne, New Jersey, and Howland Hook, New York marine terminals, these are the final terms to close the deal.
The port authority said the new leases require that CMA CGM bear 'full responsibility for wharf and berth maintenance,' including the 'participation of the port authority in demurrage revenues.'
PANYNJ chief development officer Derek Utter told the board commissioners during that demurrage sharing was a 'windfall protection tied to excess container storage revenue.'
The port authority's capital plan projects that the wharfs and berths at the Bayonne site will need US$43.4 million worth of rehabilitation and replacements through 2026. Mr Utter did not say how much CMA CGM will be required to cover, but noted wharf and berth maintenance 'will over time fully shift to become CMA CGM obligation.'
SeaNews Turkey