As reported by Reuters, Ports American will be making a $150 million investment to update a section of Oakland, California’s port as part of a 50-year deal to operate there.
The Port of Oakland will receive a $60 million payment upfront out of the $150 million, Lee said. The rest of the money will go to improve berths 20 through 24 in Oakland’s outer harbor. Ports America also will have to pay a yearly lease payment to the Port, which will start at $19.5 million and escalate over the period of the agreement, which is set to start in January 2010. A second, larger phase of the port agreement also could be put into play, Lee said, which would involve a $350 million investment. That could include plans to link the port with more rail lines.
Another indication that the infrastructure assets are of interest to investors with long-term visions.