Port of Corpus Christi commission approves 50-year lease agreement with Carlyle Group joint venture
The Port of Corpus Christi Commission approved a long-term (50-year) lease agreement with Lone Star Ports, LLC (“Lone Star Ports”), a joint venture between the Carlyle Group and the Berry Group, for approximately 200 acres on Harbor Island to develop a state-of-the-art petroleum export terminal. Featuring the latest in safety, security and environmental technologies, the facility will connect U.S. crude producers with all major international markets.
The lease agreement between the Port of Corpus Christi Authority and Lone Star Ports will provide significant accretive value in the Port’s annual operating revenues, and the project is expected to create more high-wage jobs and more economic prosperity for Port Aransas, Nueces County, and throughout Texas.
Lone Star Ports’ facility on Harbor Island is designed to be the deepest-draft safe harbor crude export facility in the nation when commissioned. Immediately upon completion, the facility’s two docks will have access to the improved 56’ ship channel depth, making it the United States’ first and only onshore terminal capable of fully loading Suezmax vessels and nearly full loading Very Large Crude Carriers (VLCCs).
Last month, the U.S. Army Corps of Engineers (USACE) awarded the first dredging contract for the Corpus Christi Ship Channel Improvement Project to the largest U.S. dredging company, Great Lakes Dredge and Dock Company (GLDD), to deepen the channel to a depth of 56’ from the Channel entrance to Harbor Island, and a planned depth of 54’ throughout the rest of the harbor.
Civil works for this facility repurposing project have been underway for the past year ahead of finalizing a definitive lease agreement, including the demolition of existing dock structures from a previous decades old Exxon crude import terminal on Harbor Island. The execution of this new lease enables the parties to commence major equipment and materials procurements and other construction efforts.
About Port Corpus Christi
As a leader in U.S. Crude Oil export ports and a major economic engine of Texas and the nation, Port Corpus Christi is the 4th largest port in the United States in total tonnage. Strategically located on the western Gulf of Mexico with a 36-mile, 47 foot (MLLW) deep channel, Port Corpus Christi is a major gateway to international and domestic maritime commerce. The Port has excellent railroad and highway network connectivity via three North American Class-1 railroads and two major interstate highways. With an outstanding staff overseen by its seven-member commission, Port Corpus Christi is “Moving America’s Energy.”
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $210 billion of assets under management across 335 investment vehicles as of June 30, 2018. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,625 people in 31 offices across six continents.