Accord reached on DP World deal

Accord reached on DP World  deal

The PANY/NJ has withdrawn its demand for a hefty ‘lease transfer’ fee of US$84m, which was criticised by DP World CEO Mohammed Sharaf as “unheard of”. Instead, it has accepted a commitment from AIG that its affiliate – Ports America – will invest at least US$50m in PNCT.

“Ports America affirmed its plan to make capital expenditures of a minimum of US$50m in [the terminal] during the life of its investment, including U$10m earmarked for the Port Authority’s development of port rail infrastructure surrounding PNCT,” said PANY/NJ in a statement.

The Port Authority also said that materials and information it has received regarding Ports America and its ownership have confirmed that it will be “a suitable terminal operator and partner committed to making investments that are critical to the continued strength and viability of the Port of New York and New Jersey”.

As well as New York/New Jersey, DP World’s US assets comprise marine terminal concessions in the ports of Philadelphia, Baltimore, Miami, Tampa and New Orleans, and stevedoring operations in 16 locations along the East and Gulf Coasts.