The Port of Long Beach has reached an exclusive agreement with the Brookfield Infrastructure Group to develop the S Terminal. The Port of Long Beach is the second largest container port in the United States, having handled 8.23 million containers from January to October this year, representing a 4.1% year-on-year increase.

The Brookfield Infrastructure Group is a globally renowned infrastructure fund that has invested in 13 ports and export facilities worldwide, including stakes in Associated Danish Ports in Denmark, PD Ports in the UK, ports in Melbourne, Sydney, Brisbane in Australia, an LNG export terminal in Louisiana, USA, and the acquisition of Triton International, the world's largest container leasing company.

According to the agreement, within the next 18 months (by April 15, 2027), the parties will advance the construction of a new container terminal at the S Terminal, with Brookfield Infrastructure Group paying $30,000 per acre per year based on the total site area. The rear portion of the S Terminal has already been leased to the PTS Terminal Company for container and trailer storage, which is not bound by this agreement.

The goal of this agreement is to facilitate the negotiation of a preferential transfer agreement, so that once Brookfield Infrastructure Group completes the development, they will operate the new container terminal. However, in the United States, the permitting costs for new terminal construction (including environmental assessments) are a major concern. As per the agreement, during the negotiation process, the Port of Long Beach will conduct necessary environmental assessments, feasibility studies, and engineering reviews. Regardless of project approval and the signing of the preferential transfer agreement, Brookfield Infrastructure Group will reimburse the port for related examination costs.

It is noteworthy that the agreement specifies that the new terminal will utilize automated handling equipment, marking a significant victory for the local ILWU dockworkers' union.