The Avalon Port Authority has chosen Meridian Terminals to finance, build and operate two new container berths under a 35-year concession worth about $2.4 billion, the authority said on Tuesday.
The deal would roughly double the port’s container capacity by 2032. Meridian will pay the authority an annual fee and a share of revenue above certain volumes, according to a term sheet released by the authority.
“This is the largest private investment in the port’s history,” said Port Authority chief executive Helen Varga. “It lets us grow without asking taxpayers to carry the construction risk.”
Questions over control
Critics, including mayoral candidate Marcus Bell, said the concession gives Meridian too much say over berth assignments and pricing. The authority said the agreement caps rate increases at inflation for the first ten years.
The board is expected to vote on the final agreement next month.
