Ports America has announced it is terminating its 50-year lease on the Outer Harbor Terminal at Port of Oakland.
The terminal will continue as normal for just 30 days, then cease all vessel and cargo-handling operations, with the terminal scheduled to be closed down in 60 days.
Port of Oakland officials said that vessels will be rerouted to adjacent terminals to keep cargo moving and that there is ample capacity at the port to absorb the volumes.
John Driscoll, Maritime Director of Port of Oakland, commented: “We’re disappointed that Ports America is leaving. But we’re in advanced discussions with our maritime partners here to prevent disruption to the Oakland business.”
Ports America is expected to meet all of its lease obligations until the two sides agree on an orderly transition of the property.
Options for the land could include uses unrelated to containerized cargo operations Port of Oakland said, despite exclusively focusing on containers for over 50 years.