Yusen Terminals will continue operating its marine terminal at the Port of Los Angeles through 2056 under a 30-year lease approved this week by the Los Angeles Board of Harbor Commissioners.

The agreement also calls for Yusen, a unit of Singapore-based Ocean Network Express (ONE), to invest an additional $200 million in zero-emission cargo-handling equipment over the coming years, extending the terminal operator's longstanding presence at the port and supporting its transition to cleaner operations. The commitment aligns with broader state-level requirements, as California regulators have mandated zero-emission cargo-handling equipment at ports and rail yards by 2030, and the Port of Los Angeles — the busiest container port in the United States — has pursued emission-reduction programs for years alongside neighboring Long Beach under their joint Clean Air Action Plan.

ONE comprises Nippon Yusen Kaisha (NYK Line) (9101.TW); Mitsui O.S.K. Lines (MOL) (9104.TW); and Kawasaki Kisen Kaisha (K Line) (9107.TW), all headquartered in Japan. The container line was formed in 2017 through the merger of the three carriers' container operations and began service in 2018.

Yusen has operated at the Port of Los Angeles since 1991 on 232 acres encompassing Berths 212-224. With annual volume of around 1.5 million TEUs, it ranks fifth of six terminals there. In addition to ONE vessels, it hosts calls by Hapag-Lloyd; Hyundai Merchant Marine (011200.KS); Wan Hai Lines (2615.TW); and Yang Ming (2609.TW).

"We greatly value our longstanding partnership with Yusen Terminals and the role they play in the success of our Port," Port of Los Angeles Executive Director Gene Seroka said in a release. "Their commitment to excellence and willingness to work closely with us have been invaluable, especially in advancing our clean air initiatives."

Seroka noted that Yusen responded quickly when the port asked terminal operators to test and incorporate zero-emission equipment. The terminal currently operates a range of zero-emission and hydrogen fuel-cell equipment, including electric top handlers, forklifts and yard tractors. The additional investment under the lease extension will support further deployment of such equipment.

"We're proud of the operation we've built at the Port of Los Angeles and excited about what lies ahead," Yusen Terminals President and Chief Executive Alan McCorkle said. "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."

Yusen's operations include stevedoring, terminal operations and specialized cargo handling. It is one of seven marine terminals at the port, including Maersk's (OTC: AMKBY) 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.

Source: FreightWaves