The new agreement was signed following a trade mission visit by Mayor Antonio Villaraigosa to Beijing and included a Memorandum of Understanding (MoU) to expand and modernise the Yang Ming terminal facilities at the port.
As part of this agreement, the Port will invest US$122m in improvements at the terminal, including construction of a new 381 m (1,260 ft) quay at Berths 126-129, which will be dredged to a depth of 16 m (53 ft). The West Basin Container Terminal is a partnership between Yang Ming, China Shipping, and Ports America.
“This agreement and lease extension ensures that West Basin Container Terminal will increase its global competitiveness with expanded facilities to handle more cargo. The Port had been making progress on these negotiations but it was the trade mission and the Mayor’s leadership that closed this important deal,” said Port of Los Angeles executive director Geraldine Knatz.
The modernisation of the Yang Ming terminal will complement the port’s US$1.2bn investment to update terminals, increase rail capacity and deepen the main channel to allow ships to reach a 16 m depth, thereby increasing the seaborne trade coming through LA.
China is the port’s number one trading partner, representing 39.4 % of LA’s total global trade numbers.