Press Release Article
PORT AUTHORITY ANNOUNCES AGREEMENT
ON CHANGE OF OWNERSHIP FOR MAHER TERMINAL
Date: Jul 05, 2007
Press Release Number: 59-2007
The Port Authority today reached an agreement with Maher Terminals LLC and affiliates of RREEF Infrastructure, part of Deutsche Asset Management’s RREEF Alternative Investments business, for a change of ownership of the New Jersey-based port facility.
RREEF Infrastructure has committed to invest at least $114 million in capital expenditures in the facility during the lease period. Maher Terminals also will pay $22 million in cash to the Port Authority, which will be reinvested in port infrastructure.
Under the agreement RREEF Infrastructure will acquire Maher Terminals LLC from the Maher family, which has owned and operated the family-owned terminal operating company and has 23 years remaining on its existing lease.
Port Authority Chairman Anthony R. Coscia said, “This transaction will ensure that the terminal has a suitable operator that continues to meet the challenges of handling increased cargo in an efficient and environmentally sensitive manner. It also provides clear evidence that our port terminals are sound financial investments, providing sustainable job growth and economic activity for the region.”
Port Authority Executive Director Anthony E. Shorris said, “Today’s agreement shows the power of the public and private sectors working side-by-side. Together with Maher and RREEF we’ve created a vision for continued growth at our port, and agreed on a plan to finance that vision. Strategic direction, operating know-how, and financial backing – all the pieces are in place to ensure that our port will remain the East Coast’s destination of choice for international freight.”
“With today’s approval from the Port Authority of New York and New Jersey, we can complete our transaction with Maher Terminals,” said David Kerr, a Managing Director and Portfolio Manager with RREEF Infrastructure. “We are now prepared to implement a strategic growth plan which will help us to compete globally in this industry.”
“We are excited about our future with the RREEF organization and we look forward to continuing to be a vital partner in the Port community,” said M. Brian Maher, Chairman and CEO of Maher Terminals. “On behalf of the Maher organization, we want to thank everyone in the approval process for their diligence and professionalism.\"
This sale is the third to occur this year in the Port of New York and New Jersey. In February, the Port Authority reached agreement with AIG Global Investments Group for the acquisition of an interest in the Port Newark Container Terminal. And in May, the agency concluded a transaction with the Ontario Teachers Pension Plan for the acquisition of the Howland Hook Marine Terminal on Staten Island from Orient Overseas International Ltd.
The Port Authority of New York and New Jersey operates many of the busiest and most important transportation links in the region. They include John F. Kennedy International, Newark Liberty International, LaGuardia and Teterboro airports; AirTrain JFK and AirTrain Newark; the George Washington Bridge and Bus Station; the Lincoln and Holland tunnels; the three bridges between Staten Island and New Jersey; the PATH (Port Authority Trans-Hudson) rapid-transit system; the Port Authority-Downtown Manhattan Heliport; Port Newark; the Elizabeth-Port Authority Marine Terminal; the Howland Hook Marine Terminal on Staten Island; the Brooklyn Piers/Red Hook Container Terminal; and the Port Authority Bus Terminal in midtown Manhattan. The agency also owns the 16-acre World Trade Center site in Lower Manhattan.
The Port Authority is financially self-supporting and receives no tax revenue from either state.