Port of Oakland Awards 50 Year Operating Concession to Ports America Affiliate
Oakland, California - March 3, 2009: Ports America Group (Ports America) today
announced that Ports America Outer Harbor LLC (Ports America Oakland) has been
selected by the Port of Oakland Board of Commissioners, in a competitive process, to
upgrade and operate five container berths in the Port of Oakland through a 50-year
concession and lease agreement.
Ports America Oakland is a partnership between Ports America and Terminal
Investments Limited (Terminal Investments), an affiliate of Mediterranean Shipping
Company, the second largest container shipping company in the world.
Ports America, with 85 years experience, is the largest independent American terminal
operator, stevedore and port-side vehicle processor, with operations in 50 ports and 97
terminals. Ports America is controlled by Highstar Capital, a leading value added
infrastructure investor, with over $15 billion of infrastructure investments made to date,
primarily in the United States.
The first phase of Ports America Oaklands operational plan includes the investment of
up to $150 million to upgrade 160 acres within the Port of Oakland, comprising some
4,400 feet of berth. This investment is expected to create over 6,000 jobs within the Bay
Area and Ports America estimates that it is likely to help to preserve an additional 85,000
Ports America Oakland's bid also includes a comprehensive environmental plan to
supplement the Port of Oakland's ongoing program to significantly improve air quality in
the San Francisco Bay area.
In addition, during the life of its operational stewardship at the Port of Oakland, Ports
America Oakland plans to invest significant additional capital to improve the
competitiveness of the port for the benefit of its many served communities and
customers. These investments are expected to aggregate to over $500 million, resulting in
the creation of up to 12,000 direct and 240,000 indirect jobs.
Commenting on the Oakland Concession, Ports America CEO Stephen Edwards stated,
On behalf of Ports America and our partner, Terminal Investments, we are extremely
excited to work with the Port of Oakland to help implement their vision in taking this
major American port to its fullest potential, now and for the long term future. We also
very much appreciate the Port of Oaklands confidence in us as the leading American
port operator, including delivering the very best possible operational, environmental and
financial commitment to our customers, partners, employees and the communities we
Highstar Capitals Founder and Managing Partner Christopher Lee added, The Oakland
Concession is a very significant milestone for both the future of the Port of Oakland and
the competitiveness of our West Coast ports generally. I salute the Port of Oakland
Board of Commissioners and our partner, Terminal Investments, for sharing their vision
and faith in the future of the US ports business with Ports America and Highstar.
Ports America was advised on the Oakland Concession by Goldman Sachs and Cleary,
Gottlieb, Steen and Hamilton.
About Ports America
Ports America, headquartered in Iselin, N.J., is the largest independent port terminal
operator in North America, providing terminal management and a full suite of
stevedoring and related services, including portside automotive processing services.
Ports America, including its predecessor companies, has over 85 years experience
operating American seaports. Our current business includes 50 ports and 97 terminals in
North America, handling containers, roll on/roll off cargo, general cargo and cruise ship
passengers and luggage.
As one of the largest employers of maritime labor in North America, Ports America
employs more than 12,000 people each day at its operations, including full-time
For further information on Ports America or if you wish to contact us, please visit our
website: www.portsamerica.com or call Kathleen C. Bond at (443) 995-1941 or email at
About Highstar Capital
Highstar Capital is the leader in value added infrastructure investing with a decade long
successful track record of delivering on commitments to our key constituents, principally
Highstars investors and our Portfolio Companies, including their management teams,
employees, customers, lenders and regulators.
Since the closing of our first infrastructure investment fund in 2000, Highstar Capital has
led or co-led a number of significant, high value added, diversified infrastructure
investments, including in power generation, water and waste water, natural gas
transmission and storage, waste management, waste-to-energy, transportation logistics,
inter modal and port concessions and operations.
Highstar Capital currently manages over $4.5 billion of capital commitments from
leading institutional investors globally, including through its third generation private
equity fund, Highstar Capital III. The total enterprise value of all transactions invested to
date on a lead or co-lead managed basis is approximately $15 billion.
For further information on Highstar Capital or if you wish to contact us, please visit our
website: www.highstarcapital.com or contact Vivian Tongalson, Director of Fund
Communications, at 1-646-857-8806 or vivian.tongalson@....
Ports AmericaColby Haines, Colby Communications Corp: 562-900-6232
Highstar CapitalGreg Vistica, Washington Media Group: 212-215-8198