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 Oakland's 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 jobs regionally.
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 serve."
Highstar Capital's 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 equivalent employees.
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 kathleen.bond@portsamerica.com.
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 Highstar's 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@highstarcapital.com.
Contacts:
Ports America Colby Haines, Colby Communications Corp: 562-420-2782
Highstar Capital Greg Vistica, Washington Media Group: 212-215-8198