“Sustainability clause” central to DP World/Brisbane lease

01 Oct 2008

DP World recently reaffirmed its commitment to the Port of Brisbane, when it signed an Agreement to Lease for a new 40-year lease at the Port of Brisbane, announcing it is looking at investing $A250 million in the port over time in response to market demand. DP World currently leases container Terminals 4, 5 and 6 at the port.

Port of Brisbane Corporation  CEO Jeff Coleman said that  the Corporation was delighted  by the length of DP World’s  commitment and the size of its  proposed investment, and, in  particular, by its willingness to  embrace the inclusion of a “Good  Environmental Practice” clause in  the lease.  “The “Good Environmental  Practice” clause enables the  Corporation to impose a  “Port Requirement” regarding  environmental and sustainability  enhancements,” explained  Coleman, “subject to a  reasonableness and parity test.  This is the time first that a lessee  has contractually undertaken  to pursue environmental  enhancements that it may  implement on its own initiative  or that may be required by the  Corporation.”  He continued “With the  recent completion of Berth 10  (the port’s seventh dedicated  container terminal), the port’s  other terminal operator, Patrick,  will vacate Terminal 7, enabling  DP World to take it over. This  will give DP World a total lease  area of 35.8ha to be operated as  a container-only terminal for an  initial term of 20 years, with a  20-year option. This will expand  both port operators’ leased area,  providing them with 900 metres  of quay line each, to enable them  to continue to maintain a three berth  operation in the face of  ever-increasing ship size.”  Mr Coleman said that DP  World would also be making  additional investment by way  of purchasing the existing  improvements at its  terminals.  “Under the existing leases,  the Corporation owns the  improvements in the form of  pavements, lighting, buildings, etc.  DP World has expressed a strong  desire to own its improvements  under the new lease, as significant  additional development is  required by DP World to refurbish  and re-engineer the terminal”, he  said.  DP World chief executive  Mohammad Sharaf said the  Fisherman Island Terminal in  Brisbane was a key asset in the  company’s expanding global  portfolio.  “We are pleased the new  lease specifically  recognises the  importance of environmental  and sustainability enhancements  in terminal operations, and we  congratulate the Port of Brisbane  Corporation on this initiative. DP  World takes its responsibility to  the environment very seriously  and we are working hard as an  organisation to minimise our  impact on the environment  globally.”

www.dpworld.com 

 

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