APM Terminals has lined up $500m for a container terminal on the West Bank of Plaquemines Parish in Louisiana, US.
Maersk’s port operating arm, which currently operates four container terminals in the US and 62 globally, has executed a letter of intent with Plaquemines Port for a new terminal that is said to hold significant potential to enable new business west of the Mississippi River. It will be the port closest to the mouth of the river, with the widest ship turning radius.
“This major commitment shows the market’s tremendous confidence in Louisiana as the home of vibrant, growing port activity,” said Louisiana Governor Jeff Landry, adding that the announcement “is a direct investment into the businesses and industries that have built Louisiana, and I look forward to the major impact our ports will continue to have on job growth and the economy here in our state.”
Plaquemines Port will lease the land to APM Terminals under a 30-year deal with extension options. APM Terminals estimates the initial investment in terminal infrastructure will be approximately $500 million, which will be privately funded.
The initial project, estimated to cost $500m will be privately funded. It will encompass 200 acres, on-dock rail, and a berth capable of handling 14,000 teu vessels, the largest now traversing the expanded Panama Canal. There will be options to expand the site up to 900 acres for terminal expansion and complementary logistics activities, APM Terminals said.
“In time, this greenfield site has all the potential to evolve into one of the big ship gateways into the US,” stated Wim Lagaay, APM Terminals’ senior investment advisor to the CEO.
“This venture allows us to build from the ground up, integrating cutting-edge technologies and sustainable practices to create a modern logistics hub that lifts standards of safety, efficiency, and productivity. Our collaboration with the Plaquemines Port and local stakeholders is key to developing a facility that sets new industry standards and serves as a boon to the economic vitality of the region,” Lagaay added.