April 28 - The Port of Palm Beach District approved a new ten-year contract with its largest tenant, Tropical Shipping, in an agreement that includes options for both parties to extend the partnership with four five-year terms.
Tropical Shipping accounts for approximately one third of the Port of Palm Beach's overall net revenue, with the port handling 1,750 vessel calls, 260,000 teu, and 2.5 million tonnes 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 tonnes.
The port will also receive a USD500,000 reservation fee and a USD500,000 capital contribution from Tropical. By 2027, wharfage rates, covering the handling of shipments at the port, will have increased by 11.5 percent. Over the course of the ten-year agreement, the port will realise approximately USD10 million in additional net income while cash flow will be more than USD2 million.
With 15 vessels, Tropical Shipping provides direct service between Florida, Canada and the Bahamas, and the Caribbean. The shipping line says its project logistics team will customise a programme for projects such as filming a movie or building a world class resort.