Hanjin Signs Agreement for New Terminal in Oakland

Hanjin Shipping Company, Ltd. of Seoul, Korea has signed a Non-Exclusive Preferential Assignment with the Port of Oakland to operate a new container terminal at berths 55 - 56 which is now under construction.

Joining Hanjin at their new terminal will be United Alliance partners Cho Yang Line and Senator Lines, in addition to China National Foreign Trade Transportation Group Corporation otherwise known as Sinotrans.

Scheduled to open in March of 2001, Phase 1 construction will have two berths totaling 2,400 feet, four super-Panamax class container cranes, ninety acres of container yard, and will add over 320,000 TEUS of annual capacity to Oakland's existing terminal inventory. At full build-out in 2002, the new terminal will total 120 acres.

The Agreement provides for approximately $9.3 million in revenue for Oakland during the first year of operation. Over the first ten-years of the Agreement, the deal will generate in excess of $168 million for the Port of Oakland. The initial term of the Agreement is fifteen years and it allows two five-year options to extend the Agreement up to a total of twenty-five years.

"Oakland achieved solid growth of 5.6% in 1999 and has experienced 8.8% growth during the first ten months of this year," explained Chuck Foster, the Port of Oakland's Executive Director. "We are also seeing strong growth in the import market to match Oakland's traditional strength in export commodities. New terminal construction provides the capacity for Oakland to handle continuing growth in international trade and to expand our participation in the intermodal market. We are expending significant resources in developing our commercial capabilities while at the same time providing public benefit and improving the environment in northern California."