The Long Beach Board of Harbor Commissioners have green-lighted a subsidiary of Mediterranean Shipping Co. (MSC) to take over sole control of the long-term lease of the Port’s 381-acre Pier T container terminal. Previously, MSC held a minority stake in the lease for Pier T, where more than a quarter of the Port’s container cargo is moved.
The Harbor Commission’s new agreement with MSC subsidiary Terminal Investment Limited (TIL) also guarantees the accelerated installation of ship-to-shore cranes capable of handling the world’s biggest container ships.
TIL is taking control from Hanjin Shipping who declared bankruptcy on Aug. 31 of this year. In 2015, Hanjin accounted for about 12 percent of the containers that moved through Long Beach.
Board of Harbor Commissioners President Lori Ann Guzmán said that while Hanjin’s bankruptcy was unfortunate, the approved agreement is a worthy deal to bring steady business to one of the country’s premier container terminals.
“This decision comes at a crucial time. With all of the changes that have taken place in the shipping industry in recent years, certainty is very important,” Ms. Guzmán said. “Although we regret the loss of a long-term partner in Hanjin Shipping, we look forward to the opportunities that Terminal Investment Limited, Mediterranean Shipping Company, Hyundai Merchant Marine and their ‘2M Alliance’ partners will bring to Long Beach.”