Canadian Shipper


Los Angeles’ proposed container terminal lease with P&O Nedloyd sets industry benchmark in “Green” initiatives

SAN PEDRO, Calif.–The Los Angeles Harbor Commission has approved an Environmental Impact Report (EIR) it says will outline the most environmentally stringent lease agreement ever executed between a U.S. port and a major shipping line. A ground-breaking component of the agreement is a requirement for cleaner fuels in calling vessels’ main and auxiliary engines.

The EIR for the Berths 206-209 Interim Container Terminal Reuse Project (site of the former Matson terminal) certifies that the container terminal operations by lease applicant P&O Nedloyd will be compliant with the latest in maritime environmental technology. Most notably, the lease terms will require that container ships calling at the terminal switch over to low-sulfur (1.5 percent or less) fuel in their main and auxiliary engines when they are within 40 nautical miles (nm) of the Port.

“The agreement with P&O Nedloyd to, among other things, reduce the pollution from their main engines steadily over the next five years is, indeed, a breakthrough in controlling the major source of pollution at the Port,” said Harbor Commission President S. David Freeman.

“If P&O Nedloyd can accomplish these green measures as part of a five-year lease agreement, there’s no reason why our other tenants with longer-term leases can’t do the same, and that’s what we’ll be asking them to do.”

P&O Nedloyd ships calling at the terminal also will be required to utilize AMP (Alternative Maritime Power) or “cold-ironing” shore-to-ship electrical connections while at berth. The AMP requirements will need to be used by 30 percent of the ships calling at the terminal by the completion of the second year of the lease, and the AMP requirement will increase to 70 percent compliance by the end of the third year. All other non-AMP-powered ships will utilize low sulfur fuel at berth.
To further limit the discharge of polluting emissions ships calling at the terminal also will be required to observe the Port’s Voluntary Speed Reduction Program (VSRP) but do so at the 40 nm boundary of the Port (instead of the program’s customary 20 nm boundary).

To review the final EIR for the Berths 206-209 Interim Container Terminal Reuse Project, visit

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