The Port Authority of New York and New Jersey bought out the 10-year lease that American Stevedoring International held on the Red Hook Container Terminal in Brooklyn, Journal of Commerce reports. The port authority acquired ASI’s cranes and other terminal equipment and turned facility over as a turnkey operation to one of the terminal’s customers, Phoenix Beverage Co., which formed Red Hook Container Co. to take over stevedoring operations. The beverage company has a one-year lease of the facility, leaving Red Hood’s future as a container terminal up in the air.
ASI, which renewed its lease on the 66-acre terminal in 2008, was losing money on the operation because the costs of operating the aging facility overshadowed increased traffic.
“The Port Authority is developing future plans for the Red Hook Container Terminal that will focus on east of Hudson cargo shipments and will be financially self-sustainable,” said port authority spokesman Hunter Pendarvis.
Outgoing port authority executive director Christopher Ward said earlier in October that the cargo activities of the Red Hook Terminal should be moved to Brooklyn’s Sunset Park. The latter site has an ondock rail line connecting to a national rail network and is close to the Brooklyn entrance of the proposed Cross-Harbor Rail Tunnel to New Jersey.
The New York Economic Development Corp. is investing $115 million to rehabilitate the old 88-acre terminal that will handle roll-on, roll-off and breakbulk cargo when it opens in 2012.
ASI, which renewed its lease on the 66-acre terminal in 2008, was losing money on the operation because the costs of operating the aging facility overshadowed increased traffic.
“The Port Authority is developing future plans for the Red Hook Container Terminal that will focus on east of Hudson cargo shipments and will be financially self-sustainable,” said port authority spokesman Hunter Pendarvis.
Outgoing port authority executive director Christopher Ward said earlier in October that the cargo activities of the Red Hook Terminal should be moved to Brooklyn’s Sunset Park. The latter site has an ondock rail line connecting to a national rail network and is close to the Brooklyn entrance of the proposed Cross-Harbor Rail Tunnel to New Jersey.
The New York Economic Development Corp. is investing $115 million to rehabilitate the old 88-acre terminal that will handle roll-on, roll-off and breakbulk cargo when it opens in 2012.