The Port of Long Beach has agreed to construct a $250-million terminal and lease it to one of Asia's largest shipping companies.
Under the arrangement, South Korea-based Hanjin Shipping Co. will pay at least $19 million a year for 15 years to use the terminal, company officials said.
The new terminal is slated for a 170-acre parcel of land at Pier A, the site of a former oil field north of the port's Cerritos Channel. The land is part of a 725-acre plot purchased by the port last year for $405 million, and must be decontaminated and cleared of oil wells.
Hanjin has outgrown the 57-acre terminal it has leased at the port since 1991. The company moved more than 2 1/2-million tons of cargo through the port in about 400,000 shipping containers last year, a 250% increase since 1991, port spokeswoman Yvonne Avila said.
The new terminal would be the Long Beach harbor's largest, surpassing the 109-acre International Transportation Services terminal on Pier J. The new terminal will include a 3,700-foot wharf, 45-foot-deep berths and six container cranes, officials said.
Construction is scheduled to start in 1996 and could be completed in early 1997, Avila said.