CMA CGM to invest $200-$300 million to expand and upgrade the US terminal
Governor Kathy Hochul and the Port Authority of New York and New Jersey today announced a substantial new investment to expand and upgrade the Howland Hook Marine Terminal on Staten Island, creating more than 300 jobs and preserving this site as a key economic generator for Staten Island.
The projected investment of $200-$300 million – the largest in the facility’s history – was secured through an amended lease agreement between the Port Authority and the facility’s new operator, global shipping and logistics company CMA CGM. The lease, now running through 2047, will bring capacity enhancements, infrastructure improvements, and sustainability upgrades, allowing the facility to further build on its rich maritime history, as well as its legacy of economic development and substantial job opportunities for Staten Island.
As part of the amended agreement, CMA CGM will pay increased rent based on container throughput, subject to a minimum annual guarantee, and will share revenue from excess container storage. Additionally, CMA CGM will assume full responsibility for maintaining and rebuilding wharf and berth structures, as well as increasing capacity to meet demand.
The agreement also aligns the Howland Hook Marine Terminal’s operations with the ambitious climate and sustainability goals set out by Governor Hochul and the Port Authority. Specifically, CMA CGM has committed to the Port Authority’s goal of achieving net-zero greenhouse gas emissions by 2050, including upgrading to zero-emissions material handling equipment and promoting renewable energy throughout the facility.
In addition, CMA CGM will collaborate with the Port Authority around priorities such as safety and security, innovation, customer experience, key performance standards, and enhanced reporting on terminal activities.
The projected $200-$300 million commitment from CMA CGM, the world’s third-largest ocean carrier, to invest in the terminal facilities marks the biggest investment in Howland Hook’s history. It will fund reconstruction and rehabilitation of wharves and ship berths, as well as upgrades to cargo handling equipment and expansion of yard capacity. CMA CGM has committed to boosting the facility’s capacity by 50 percent over the next seven years, allowing it to handle up to 750,000 cargo lifts each year. The capacity enhancements will enable Howland Hook to remain competitive with cargo demand forecasted to surge in the coming decades, keeping goods flowing and prices manageable for consumers.
