New York and New Jersey greenlight Maersk’s container terminal lease extension

The Port Authority of New York and New Jersey (PANYNJ) has decided to extend the lease of a container terminal operated by APM Terminals, a unit of Denmark-based shipping giant A.P. Moller-Maersk, a move that is expected to clear the path for “major” infrastructure investments.

As divulged, the PANYNJ has extended the lease of APM Terminals’ Elizabeth for another 33 years. The lease agreement, which is now set to expire in December 2062, is said to have the potential to ‘boost’ capacity and transport velocity, create jobs and positively contribute to the United States economy.

The port authority’s Board of Commissioners gave the deal a stamp of approval on March 27, 2025.

PANYNJ Chairman Kevin O’Toole shared that the agreement “underscored the role” that the Port of New York and New Jersey itself is projected to play in powering both the regional and national economy.

“This lease extension secures transformative infrastructure and capacity enhancements at the second-largest container terminal in the East Coast’s busiest port,” PANYNJ Executive Director Rick Cotton, added.

It is estimated that APM Terminals Elizabeth presently handles over 25% of the annual container throughput in the port complex, supported by the North American labor union International Longshoremen’s Association (ILA).

As disclosed, during the previous lease—which was originally due to expire in 2029—APM Terminals has made numerous infrastructure and equipment investments, including a pour of $200 million into modernizing the terminal. The investments are said to have allowed the company to ensure ‘uninterrupted’ operations during the COVID-19 pandemic and beyond.

Shedding more insight on the lease extension with PANYNJ, Henrik Kristensen, Managing Director, APM Terminals Elizabeth, further remarked:

“This lease extension will be another milestone for APM Terminals, which moved record volumes for the port in 2024. Working side-by-side with the ILA, the extension will allow us to continue our investment in the terminal to support jobs and the growth of the local economy for many years to come.“

As the maritime industry sails closer to its decarbonization target, Maersk’s transport and logistics unit is projected to infuse more money into its container terminals to improve their capacity. Planned upgrades reportedly include the optimization of the terminal layout, electrification of container handling equipment, and future-proofing container berths.

Maersk’s unit recently expanded its foothold beyond the United States, as well.

Specifically, at the very beginning of April this year, the company announced that it had acquired the Panama Canal Railway Company (PCRC) from Canadian Pacific Kansas City (CPKC) and Illinois-based manufacturer Mi-Jack’s Lanco Group of Companies—a set of firms specializing in disciplines from material handling and terminal automation to supply chain operations and more.

As informed, PCRC—which runs a 76-kilometer single-line railway adjacent to the Panama Canal, facilitating cargo movement between the Atlantic and Pacific Oceans—generated a revenue of $77 million last year, making the transaction a strategic step for APM Terminals’ operations in this region.

While further details of the deal are yet to be disclosed, the move is expected to enable APM Terminals to keep a stronger focus on its assets in Canada, the United States, and Mexico.

This sale takes place as US President Donald Trump’s administration considers seizing control of the canal due to alleged rising foreign involvement, especially from China. It was not long before rumors began, and were then confirmed, that a BlackRock-TiL-led consortium would purchase the majority of port holdings in Panama, which are owned by Hong Kong-headquartered CK Hutchison.

The deal was estimated at a whopping $22.8 billion, though whispers have emerged that China has geared up to block the transaction.