JAXPORT, Hanjin sign development Agreement
The Jacksonville Port Authority (JAXPORT) and Hanjin Shipping Company LTD have taken another significant step towards development of a new 170-acre container terminal facility in Jacksonville, Fla. Following negotiations last week in Seoul, South Korea, the two sides signed a detailed development agreement. This agreement expands on the Memorandum of Understanding signed by JAXPORT and Hanjin in October 2007.
Talks will now move towards a final long-term lease agreement, with JAXPORT’s Board of Directors expected to approve a lease in the next few months.
“We are pleased with our results to date, and we look forward to full Board consideration and approval of the final lease agreement soon,” said Ron Baker, JAXPORT’s Deputy Executive Director and Chief Financial Officer.
The development agreement signed March 21 indicates a high level of commitment between the two parties. The agreement identifies two potential locations for the proposed terminal, with Hanjin and JAXPORT to jointly choose a final site. In addition, a funding structure for the project was selected for recommendation to JAXPORT’s Board, following the evaluation of several available options.
“This development agreement brings us one step closer to our final destination, and we hope it will lead to a very positive achievement in the near future,” said S.D. Park, Hanjin’s lead negotiator and Deputy General Manager of the Terminal Business Team.
The Hanjin Container Terminal is slated to open in 2011 and cost an estimated $400 million to develop.