The Port of Los Angeles has announced that it is beginning a two-year construction project to improve the marine container terminal operated by Yusen Terminals LLC. The Los Angeles Board of Harbor Commissioners has awarded Manson Construction Co. a $44.6m contract to upgrade berths and backlands at Berths 212-224.
“This project consists of strategic improvements to make Yusen a more agile terminal and strengthen our competitive edge,” said Port of Los Angeles’ Executive Director, Gene Seroka. “In addition to making the best use of port property, it incorporates green features and practices that further our commitment to the highest environmental standards.”
“Yusen is pleased to work with the Port of Los Angeles to improve our wharf and terminal,” said Alan McCorkle, Vice President of West Coast Operations for NYK Ports comprised of Yusen Terminals LLC and Ceres Terminals Inc., sister companies jointly owned by Nippon Yusen Kabushiki Kaisha (NYK Group) and Macquarie Infrastructure Partners III. “This project will allow Yusen to handle vessels and move cargo more efficiently for our customers.”
Based on all design, project management and construction costs, the port’s total investment is estimated at more than $67m. This amount includes cost for an on-dock rail project which will be done under a separate contract in 2016. Additionally, Yusen estimates it could invest more than $60m in support of the project. About $8m of the port’s costs will be paid by California Proposition 1B Transportation Bond funds.
Yusen operates the 185 acre container terminal under a long-term lease with the Port that extends through 2026. The project is part of the port’s larger capital program aimed at enhancing berth, gate and rail efficiencies at all Los Angeles marine terminals. Over the next five years, the port plans to invest more than $800m in its facilities.
The project consists of upgrading wharf and backland infrastructure within the terminal’s existing footprint to enhance Yusen’s ability to service the biggest ships in the transpacific trade lanes. The improvements will allow Yusen to simultaneously work three container ships carrying up to 13,000, 11,000 and 6,500 TEUs respectively and ensure cargo flows during peak periods when ships call at all three berths.
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