APL PLANS TO BUY 2 CRANES FROM PORT PACT SUBJECT TO MARAD OK

APL PLANS TO BUY 2 CRANES FROM PORT PACT SUBJECT TO MARAD OK

American President Lines has reached an agreement with the Port of Oakland to buy two Alliance cranes for $420,000 each.

This will bring the number of company-owned cranes at APL's Oakland terminal to four.APL and Oakland agreed to the transfer on an "as is-where is" basis. Under these terms, APL is required to buy out the port's secondary use revenue-sharing agreement. The move was approved at a port meeting Tuesday.

APL will assume lease payments on the cranes until they are fully paid on July 1, 2001.

The purchase is subject to approval by the U.S. Maritime Administration ''for APL to serve Hawaii and placing the cranes in Hawaii," port documents said. The purchase price will hold until Sept. 1, 1990.

This appears to underscore efforts by APL to gear up for a Hawaii service. APL's entrance into the West Coast-Hawaii trade has been strongly opposed by Matson Navigation Co.

The terms of the terminal agreement also state that APL must give the port at least 24 months warning if it plans to move to another port facility and take the cranes with it.

The port also has reserved the option to buy any of the four cranes from APL if APL does not exercise an option to extend the agreement for two seven- year periods.

In a related move, the Port of Oakland also agreed to make available to APL 18 acres of land to store container chassis while APL's Middle Harbor Terminal is being repaired. The damage to that facility was caused by the October 1989 earthquake, and repairs on Middle Harbor are scheduled to begin May 22.

In order to accommodate APL in the temporary terminal area, the Port of Oakland will spend about $550,000 for clearing, grading, fencing, lighting, adding sewage and paving the new acreage.

The port also authorized $70,000 for an art consultant and $175,000 for new artwork and the reusing and reframing of existing memorabilia. The Port of Oakland recently moved into new headquarters at Jack London Square.