Port of Los Angeles extends Yusen lease through 2056 with $200 million equipment commitment

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The Port of Los Angeles has approved a 30 year extension of Yusen Terminals’ operating agreement, keeping the container terminal operator at the US gateway through 2056 while tying the long term arrangement to further investment in zero emission cargo handling equipment.

The Los Angeles Board of Harbor Commissioners approved the amendment on Aug. 27. Yusen has committed an additional $200 million for zero emission equipment over the coming years.

Yusen has operated at Los Angeles since 1991 and occupies 232 acres at Berths 212 through 224 along the East Basin Channel, north of the Vincent Thomas Bridge.

The agreement extends the permit from Oct. 1, 2026 through Sept. 30, 2056. Port documents show the revised terms will also increase guaranteed rent by $10.4 million, or 4.8%, during the first five years compared with rent at current levels.

The amendment resets rates to reflect the fair market value of the premises and introduces environmental conditions requiring terminal equipment to transition to zero emissions.

For the port, the agreement effectively exchanges long term operating certainty for commitments on investment, rent and cleaner equipment.

Gene Seroka, executive director of the Port of Los Angeles, said Yusen had responded when the port asked terminal operators to test and introduce zero emission machinery.

Yusen already operates electric and hydrogen fuel cell cargo handling equipment, including top handlers, forklifts and yard tractors. The additional investment will expand that transition as Los Angeles works toward zero emission terminal operations.

The terminal is also participating in the port’s wider Clean Ports Program. The Port of Los Angeles and participating terminal operators have secured more than $400 million in US Environmental Protection Agency funding, supported by $200 million in matching funds, for projects aimed at accelerating zero emission terminal infrastructure.

Alan McCorkle, Yusen Terminals president and CEO, said the extended agreement provides the certainty required to continue investing in the terminal, workforce and technology while maintaining service for customers.

Yusen is owned by Ocean Network Express, or ONE. Its Los Angeles operation provides stevedoring, container terminal services and specialized cargo handling. The operator marks 35 years at the port in 2026.

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