The Port of Palm Beach, Florida, has signed a new 10-year deal with its largest tenant, Tropical Shipping of Riviera Beach, Florida.
Tropical Shipping is a containerized cargo carrier serving primarily the Bahamas and Caribbean ports.
Under the deal, both parties have the option to further extend the contract with four five-year terms.
One of the biggest impacts of the new contract will be a $4m project to demolish the Maritime Office Building – Tropical Shipping’s former headquarters at the port – freeing up three acres of space for Tropical to expand its refrigerated cargo area there. That project is estimated to be completed between March and September 2020.
Tropical moved its headquarters to new premises in Riviera Beach last year.
It operates 15 vessels and accounts for around one third of the Port’s overall net revenue and that could increase as Tropical is set to add six new vessels to its fleet in 2018.
The new contract was unanimously approved by the Board of Commissioners for the Port of Palm Beach District.