Orient Overseas Container Line (OOCL) has secured a key vote from harbour commissioners in the port of Long Beach for its US$4.6 billion, 40-year lease on a new container terminal at the west coast US port.
The deal was approved by commissioners on the finance and administration committee in a meeting in Long Beach on Monday afternoon. A spokesman for the port said there was general support during the meeting before three commissioners voted in favour.
A fourth commissioner, representing dockworker unions, did not vote, saying there could be a clash of interest. The proposal, which would be the largest port lease deal in United States history, is expected to go to a full vote on February 6.
The spokesman said that if it was approved, executives from OOCL and the port would sign the formal lease agreement later next month. Monday's vote came after the Tung family-controlled shipping company and port executives agreed in principle last Thursday to sign the lease, after 12 months of talks.
Under the plan, the port would spend US$1.2 billion to merge two existing container terminals into a 122 hectare terminal complex capable of handling 3 million teu (20-foot equivalent units) a year.
OOCL already operates one of the terminals, the Long Beach Container Terminal. The second one, California United Terminals, was operated by South Korea's Hyundai Merchant Marine until late 2010 when it moved to Los Angeles. The capacity of the new complex, which includes the construction of 1.4 kilometres of new wharves, rail facilities and 37 container-storage areas, would be equivalent to half the 6.1 million teu handled by Long Beach in 2011 last year.