Friday , 20 September 2019
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The Miami-Dade Board of County Commissioners approved on July 11, 2008 a resolution authorising the execution of a terminal operating agreement between Miami-Dade County and Terminal Link (Miami) LLC, a subsidiary of CMA CGM Group, which will operate the terminal at the Port of Miami in a joint venture with APM Terminals North America (APMT). The commissioners also authorised the termination of the port’s existing terminal agreement with Maersk, Inc.

CMA CGM subsidiary to operate Miami terminal

Terminal Line will hold a 51% stake and APMT 49% of the venture company – South Florida Container Terminal (SFCT) – which will operate on the 71-acre site formerly held by APMT. The agreement is renewable for two five-year periods.

The new lease, which potentially runs through 2023, will generate revenues for the Port of Miami of approximately US$15.3m during its first year, of which US$11.9m will be guaranteed. Current annual revenues from Maersk to the port are approximately US$6.4m, of which only US$3.4m is guaranteed. The guaranteed revenues under the agreement will increase annually at a weighted average rate of approximately 4.7% throughout its 15-year initial term.

The agreement authorises SFCT to operate as a common user terminal and to offer services to all shipping lines. Initially, it will service CMA CGM and Maersk Line. The terminal will have a 5,000 ft wharf, eight gantry cranes and a 40 ft draught, which will be deepened to 50 ft by 2015. The approved agreement also represents a minimum total investment of US$25m towards terminal infrastructure upgrades and improvements.