Maersk is committing to the Port of New York and New Jersey for the long haul.
The logistics giant and the port’s operator, the Port Authority of New York and New Jersey, have agreed to a 33-year lease extension for APM Terminals Elizabeth that goes through December 2062.
The proposed deal is not finalized and is subject to vote by the Port Authority board of commissioners on Thursday. The initial agreement was originally due to expire in 2029.
APM Terminals, which operates 53 terminals across 28 countries, will invest more than $500 million to enhance cargo handling capacity at its 350-acre terminal in Elizabeth, N.J., the second largest at the port system.
This investment supports the Port Authority’s Port Master Plan 2050, which anticipates cargo volumes doubling or tripling at the NY/NJ port system from 2018 levels to between 12 million and 17 million containers by 2050.
APM Terminals Elizabeth currently handles over 25 percent of the annual container throughput in the port complex, supported by more than 1,100 members of the International Longshoremen’s Association (ILA). The Elizabeth terminal has a current capacity of 2.3 million 20-foot equivalent units (TEUs) and 14 ship-to-shore cranes, each designed with a 23-container outreach.
As part of the agreement, the terminal operator has also committed to the replacement and maintenance of all wharf and berth structures. Planned upgrades include an optimized terminal layout, electrification of container handling equipment and future-proofing container berths.
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“This agreement delivers long-term certainty for the port, its customers, and the entire supply chain,” said Bethann Rooney, port director at the Port Authority of New York and New Jersey. “With APM Terminals’ commitment through 2062, we are solidifying the Port of New York and New Jersey as a stable, reliable choice for shippers—one that is well-positioned to handle growing cargo demand while maintaining its reputation for world-class efficiency and service.”
APM Terminals’ investment is significant for the plans of the wider Port of New York and New Jersey, which is the busiest port on the East Coast. Often the first East Coast port of call for most trans-Atlantic container vessels, it handled approximately $264 billion worth of goods in 2024, moving 8.7 million TEUs. That marked an 11 percent increase over 2023.
Building on the Port Authority’s sustainability initiatives, APM Terminals has 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 Maersk subsidiary has ponied up the big bucks to renovate the terminal in recent years. In 2021, APM Terminals completed a $200 million investment to modernize the terminal which included the addition of four new ship-to-shore cranes, upgraded IT systems and new truck gates. That investment, first unveiled in 2017, enabled the Elizabeth terminal to handle ultra-large container vessels exceeding 14,500 TEUs of capacity.
That investment also included the rollout of artificial intelligence-based technology designed to trigger a notification to the terminal safety team to respond to a trucker’s location once they step out of their truck.
With this lease extension, most of the Port of New York and New Jersey’s major tenants are now secured under long-term agreements—APM Terminals through 2062, Port Liberty Bayonne and New York through 2047 and Port Newark Container Terminal through 2050.
For APM Terminals, this follows a $73 million on-dock railroad expansion at the Port of Los Angeles’ Pier 400 last year, alongside the addition of three new ship-to-shore cranes. APM is currently in the fourth phase of its expansion of its terminal in the Port of Mobile, Ala., which is scheduled to be completed by the end of 2025. Under the agreement, the Alabama Port Authority and APM Terminals are adding 32 acres to the existing 134-acre facility.
Across all its North American terminals both under the APM banner and through joint ventures, Maersk saw a massive 20 percent jump in volume throughout the year, as a flurry of cargo entered the U.S. ahead of numerous uncertainties like the East and Gulf Coast labor negotiations and the implementation of tariffs by President Donald Trump.
The high volumes in North America and higher storage revenue from congestion made for healthy revenue and earnings gains in the segment. Overall terminals revenue jumped 16 percent for Maersk in 2024 to $4.5 billion on $1.3 billion in earnings before interest and taxes.
From 2020 to 2023, Maersk has invested roughly $3 billion to increase terminal capacity by a combined 30 percent globally.