SSA Expands Port Role
As has been reported widely, the Sacramento-Yolo Port Commission has approved a new master lease of the Port to SSA Pacific, Inc. The new lease takes effect July 1, 2013, and replaces an existing agreement under which SSA was responsible for Port operations.
The new agreement provides guaranteed rent payments to the Port and shifts all maritime-related operational expenses to SSA, enabling the Port to reduce administrative costs and focus on development of its real estate assets.
“We’re redefining and redesigning the Port and this is a critical first step,” said Mike McGowan, chairman of the Port Commission.
The lease will be for a minimum of five years and can be extended by five-year increments to a maximum of 20 years. Minimum annual rent payments to the Port start at $650,000 and the lease provides for additional revenues to the Port as shipping tonnage increases.
As part of the agreement, the Port is relieved of $850,000 in existing debt to SSA, and SSA will purchase the Port’s existing air credits related to bulk cargo handling for $50,000.
“As terminal operators, SSA has had a very good working relationship with the City of West Sacramento and past Port customers,” said Mark Knudsen, president of SSA Conventional. “The new lease arrangements will allow us to further expand our role, attract new investment, and increase business through the Port, which will be good for the City of West Sacramento and increase jobs in the area.”
SSA, based in Seattle, provides a full spectrum of services associated with marine and rail terminal operations.
www.portofwestsac.com
