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.