The Port Authority of New York and New Jersey (Port of NY/NJ) has announced a landmark 33-year lease extension with APM Terminals, the operator of the Port of New York and New Jersey's second-largest container terminal.

In the announcement, the port noted that this agreement includes major investments and capacity enhancements by APM Terminals at its container terminal, setting a new framework for container terminal agreements and further strengthening the East Coast's busiest port to meet rising cargo demand.

APM Terminals is an independent division of Denmark-based A.P. Møller – Mærsk, an integrated logistics company.

The Port of NY/NJ said this extension, along with similar long-term agreements with other major port tenants, is a key step in growing the port's business, building confidence across the supply chain, and solidifying the Port of New York and New Jersey's position as a reliable, efficient gateway for goods.

"Our region is an irreplaceable driver of the U.S. economy, serving as home to one of the busiest ports in our nation's supply chain," said Phil Murphy, governor of New Jersey, adding that the lease extension with APM Terminals will play an important role in sustaining the growth and competitiveness of the port.

Port Authority Executive Director Rick Cotton noted that the lease extension secures transformative infrastructure and capacity enhancements at the second-largest container terminal in the East Coast's busiest port.

The Port Authority Board of Commissioners will vote on the lease extension at its meeting on March 27.

APM Terminals' new lease extends the term through December 2062 from its current expiration in December 2029 and requires payment to the Port Authority of an extension fee and modified annual rental payments.

US$500M investment

As part of the agreement, Port of NY/NJ said APM Terminals will invest over US$500 million over the coming years to enhance cargo-handling capacity at its 350-acre terminal.

APM Terminals has also committed to the replacement and maintenance of all wharf and berth structures.

This investment supports the Port Authority's Port Master Plan 2050, which anticipates cargo volumes doubling or tripling by mid-century.

APM Terminals has also committed to future capacity enhancements driven by demand. Additionally, the Port Authority and APM Terminals will expand the lease to include portions of an adjacent parcel of land to APM Terminals for enhanced productivity.

APM Terminals has also pledged to achieve net-zero greenhouse gas emissions in its operations and support the Port Authority's goal of reaching net zero agency-wide by 2050. Under the new agreement, APM Terminals will invest in zero-emission cargo-handling equipment over the coming years.

The Port of New York and New Jersey is the busiest port on the East Coast and among the top three busiest in the country as the first East Coast port of call for the vast majority of transatlantic container vessels.

In 2024, it handled approximately US$264 billion worth of goods, moving 8.7 million TEUs (twenty-foot equivalent units).