Yusen Terminals gets 30-year LA port lease

Yusen Terminals will operate its marine terminal at the Port of Los Angeles through 2056. The Los Angeles Board of Harbor Commissioners approved the 30-year lease this week.

The agreement mandates an additional $200 million investment by Yusen in zero-emission cargo-handling equipment. This supports the port's transition to cleaner operations.

Yusen is a unit of Singapore-based Ocean Network Express (ONE). ONE comprises three Japanese shipping lines: Nippon Yusen Kaisha (NYK Line), Mitsui O.S.K. Lines (MOL), and Kawasaki Kisen Kaisha (K Line).

Terminal Operations and Volume

Yusen has operated at the Port of Los Angeles since 1991. Its facility spans 232 acres encompassing Berths 212-224.

The terminal handles an annual volume of around 1.5 million twenty-foot equivalent units (TEUs). This ranks it fifth among the port's six terminals. Our stats page tracks such throughput metrics across major gateways.

In addition to ONE vessels, the terminal hosts calls by several other carriers. These include Hapag-Lloyd, Hyundai Merchant Marine, Wan Hai Lines, and Yang Ming.

Investment in Zero-Emission Technology

Port of Los Angeles Executive Director Gene Seroka praised the partnership. "We greatly value our longstanding partnership with Yusen Terminals and the role they play in the success of our Port," Seroka said. He noted their commitment has been invaluable in advancing clean air initiatives.

Seroka stated Yusen responded quickly when the port asked terminal operators to test and incorporate zero-emission equipment. The terminal already operates a range of such equipment.

This includes electric top handlers, forklifts, and yard tractors. Some use hydrogen fuel-cell technology. The new $200 million investment will support further deployment.

Long-Term Certainty and Market Context

Yusen Terminals President and CEO Alan McCorkle welcomed the agreement. "This agreement gives us the long-term certainty to continue investing in our terminal, our people and new technology while providing the reliable service our customers expect," McCorkle said.

Yusen's operations include stevedoring, terminal operations, and specialized cargo handling. It is one of seven marine terminals at the Port of Los Angeles.

The other terminals include Maersk's APM Terminals, Everport Terminal Services (a unit of Evergreen Marine), CMA CGM's Fenix Marine Services, and two West Basin Container Terminals operated by China Shipping and Mediterranean Shipping Co. The evolving standings of terminal operators reflect these long-term strategic investments.

The lease extension secures Yusen's presence at a critical North American gateway for decades. It aligns with broader port goals for emissions reduction.