Ports America eyes Bayonne Terminal

Ports America eyes Bayonne Terminal A third party has entered a bidding war for the former Military Ocean Terminal in Bayonne, New Jersey (MOTBY) — but it is unclear whether there is any interest in higher bids.
   Ports America, the former U.S. arm of Dubai Ports World, has proposed paying $75 million for a 92-acre slice of MOTBY, according to an article in the Jersey Journal newspaper.
   The Bayonne Local Redevelopment Authority agreed a month ago to sell the property to the Port Authority of New York and New Jersey for $50.5 million, despite a higher competing offer by New York’s Worldwide Group and Baton Rouge, La.-based Shaw Group
   Port authority commissioners approved the deal and so did the redevelopment agency. However, because of controversy over whether the redevelopment agency properly advertised the meeting, the redevelopment agency is expected to vote on the sale to the port authority again on Thursday evening.
   Members of the International Longshoremen’s Association who work at the nearby Global Marine Terminal and whose members work at a cruise terminal at the former MOTBY army base, are upset about the sale of the MOTBY property to the port authority because of a restriction in the sale agreement that prohibits the property from being used as a container terminal.
   They say a container facility would create far more jobs than a roll-on/roll-off terminal.
   Worldwide Group said that while it wanted to develop a container terminal, it would be willing to accept the same restrictions as the port authority and pay a higher price — $75 million, according to press reports. But its offer was not accepted by the redevelopment authority.
   The redevelopment authority is also planning to build many luxury condominiums near the terminal, and there is concern a container terminal would negatively impact homeowners.
   The Jersey Journal quotes a letter from Stephen Edwards, president and chief executive officer of Ports America, to the redevelopment agency as saying his company is “ready to move to contract with you immediately and (is) prepared to close the purchase within 60 days.
   “We will provide you with a $30 million security deposit upon contract signing,” the letter reportedly states.
   Ports America, which is a subsidiary of AIG Global Investment Group, operates terminal in 24 U.S. ports, including one in nearby Newark, N.J. Its affiliates include Marine Terminals Corp., and ro/ro specialist AMPORTS.