California United Terminals, the terminal operator for Hyundai Merchant Marine at the Port of Long Beach, will move its operations later this year to the APM Terminals facility at the Port of Los Angeles.
The arrangement expected to be finalized in the next few weeks, will create a somewhat unusual arrangement, with the terminal operator subleasing a portion of the APM Terminals’ Pier 400 facility. APM is also a terminal operator and its primary tenant at Pier 400 is Maersk Line, a sister company.
The CUT facility in Long Beach is part of the port’s Middle Harbor complex that also includes Long Beach Container Terminal, where the primary tenant is Orient Overseas Container Line.
By The Numbers: Containerized Ocean Trade - Southern California Ports.
Long Beach is moving forward on plans to combine the CUT and LBCT terminals into one large, rectangular facility that will be more conducive to contemporary container operations. Construction on the Middle Harbor project is expected to begin next year.
In a joint statement, CUT and Hyundai Merchant Marine said the move to Los Angeles is being made in part because of concerns about the effect of construction activities in Long Beach.
CUT also said the needs of its customers and vessel partners will be better met at Pier 400 in Los Angeles.
APM operates the large 512-acre facility in Los Angeles. Maersk Line is the primary tenant, although APM has space available to handle other carriers. Also, APM has the first call on a possible expansion to the adjacent Pier 500.
CUT will sublease 98 acres from APM at Pier 400. Once the agreement is finalized with APM, CUT will have the option of expanding on to Pier 500. If CUT chooses not to expand, APM will retain the rights to that property.
The Port of Long Beach said it will lose 386,000 TEUs a year when Hyundai vessels start calling in Los Angeles. However, Chris Lytle, deputy executive director in Long Beach, said new vessels and services scheduled to call in Long Beach will add about 1 million TEUs a year.
Two new services at the SSA Marine facility will result in an additional 550,000 TEUs and Matson’s new China service will bring about 234,000 TEUs a year to the port.
Contact Bill Mongelluzzo at email@example.com.