Port of Palm Beach signs 10-year contract with Tropical Shipping
The agreement includes options for both parties to extend the partnership with four 5-year terms.
Tropical Shipping accounts for approximately one-third of the Port’s overall net revenue, with the Port handling 1,750 vessel calls, 260,000 TEUs, and 2.5 million tons of cargo in FY 2016.
As Tropical will be adding six new vessels to its fleet in 2018, the contract will raise the minimum tonnage guarantee by 170,000 tons.
The Port will also receive a $500,000 reservation fee and a $500,000 capital contribution from Tropical. By 2027, wharfage rates, covering the handling of shipments at the Port, will have increased by 11.5%.
Over the course of the 10-year agreement, the Port will realize approximately $10 million in additional net income while cash flow will be more than $12 million. ■