City Council approves 25‑year Maersk agreement for Pier 400 at Port of Los Angeles
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Summary
The Los Angeles City Council unanimously approved a 25‑year agreement with Maersk Sealand for a 484‑acre container terminal at Pier 400, a deal the city says will generate about $2 billion in revenue and add a 39.39‑acre intermodal railyard.
The Los Angeles City Council unanimously approved a 25‑year agreement with Maersk Sealand on Aug. 11 to develop and operate a container terminal at Pier 400 in the Port of Los Angeles.
Port and city negotiators described the agreement as the largest proprietary container facility in the world, a 484‑acre terminal with a 39.39‑acre intermodal railyard. “It is a 25 year effective 04/30/2002 agreement, which will bring $2,000,000,000 in revenue to the Port Of Los Angeles,” a city staff member told the council during the special meeting. The roll call recorded 13 ayes and the item was approved unanimously.
Why this matters: Port officials said the Maersk commitment strengthens the port’s role as the nation’s leading container gateway and will add infrastructure to support rail and yard operations. Harbour Commission representatives and port staff credited extensive negotiations that, they said, addressed long‑standing council concerns including living‑wage and other labor provisions.
During the presentation, the acting Harbour Commission president framed the vote as a major milestone. “This is indeed a watershed day for the city of Los Angeles and for the Port Of Los Angeles,” he said, thanking port staff and commissioners for the negotiations. Commissioner Carol Rowan, who helped lead the talks, told council members the deal followed “two years of intense staff work” and overcame numerous obstacles.
The motion before the council was to approve the special agenda item that formalized the memorandum of understanding with Maersk. City staff and port officials who were at the dais and named during the presentation included Harbour Commission acting president John Thomas, Commissioner Carol Rowan, Executive Director Larry Keller, chief harbor engineer Stacy Jones, director of finance Lou Coletta, assistant city attorney Kathy Vale, director of business development Al Firestein and chief operating officer Bruce Seton. Commissioner Ted Stein was acknowledged for his role in negotiations but was not present at the meeting.
Council members and port staff emphasized the size and financial scope of the agreement during debate. Port staff said the terminal will be the world’s largest proprietary container facility and reiterated Maersk’s status as the world’s largest shipping line.
The resolution and supporting materials filed with the council described the agreement as an effective contract between the Port and Maersk Sealand. The item was considered during a specially convened meeting of the council to accommodate port representatives and negotiators.
What’s next: Port and Maersk staff will complete required implementation steps consistent with the agreement’s terms, including any necessary follow‑up approvals or administrative actions. Council members asked staff to continue reporting back as the project moves from contract approval to implementation.
ACTIONS: The council recorded unanimous approval (13 ayes) of the motion to approve special agenda item No. 1, described in staff materials as the Maersk Sealand agreement for Pier 400. The motion was offered from the dais by a city staff presenter during the special meeting and carried on a recorded roll call.
