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DP World and Port of Brisbane sign new lease agreement

DP World and Port of Brisbane sign new lease agreement

Brisbane: DP World has reaffirmed its commitment to 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 $250m in the port over time in response to market demand.

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, 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', Mr Coleman said.

DP World currently leases container Terminals 4, 5 and 6 at the port.

'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', Mr Coleman said.

'This will expand both port operators' leased area, providing them with 900 metres of quayline 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. [28/7/08]