The start of the process, which is expected to formally begin in the autumn with a Notice of Preparation, is the first step in Yang Ming’s plan to enhance its terminal facilities and deepen its berth to accommodate 14,000 teu vessels and increase cargo volume.
In May, executives from the pair signed a term sheet agreement to perform a number of key improvements that will enhance the terminal’s facilities.
As part of the agreement, the port plans to invest US$122m in improvements at the terminal, including construction of a new 1,260 ft wharf at Berths 126-129, dredging to a depth of -53 ft at the newly constructed wharf, and expansion of the West Basin Intermodal Container Transfer Facility. The West Basin Container Terminal is a partnership between Yang Ming, China Shipping and Ports America.
The Taiwanese company’s current lease at the West Basin Container Terminal ends in 2021. This agreement will extend the lease to 2030, delivering between US$365-$525m in revenue, depending on cargo volumes.
In addition to the term sheet agreement, the Los Angeles officials also signed a Memorandum of Understanding with officials of the partners of the West Basin Container Terminal to promote business and trade with the City and Port of Los Angeles in Beijing.
The enhancement of the terminal facilities will complement the port’s five-year, US$1.2bn investment to update terminals, increase rail capacity, and deepen the main channel.