The San Francisco Port Commission has executed a new 20-year lease agreement with BAE Systems for maritime ship repair that will sustain San Francisco’s 150-year tradition of shipbuilding and repair.
The agreement includes a provision that could extend shipyard operations through 2045. BAE Systems San Francisco Ship Repair currently leases the Port’s Pier 70 shipyard and two floating drydocks under a 30-year lease, set to expire in December 2017.
“BAE Systems and the Port have collaborated to expand West Coast dry-docking capabilities, servicing post-Panamax ships, providing emission-free electrical power to the ships, and deepening the shipyard’s channel entrance to accommodate large ships. This agreement fortifies our alliance to sustain this industry for decades to come ,” said Monique Moyer, the Port’s Executive Director.
The San Francisco Port Commission, at their meeting on March 24, 2015, unanimously approved a new long-term lease with BAE that will:
– Establish a 20-year lease term beginning April 1, 2015, with two five-year extension options;
– Institute a system of rent credits that will incentivize investments in the Port-owned equipment and buildings, revitalize these assets, and eliminate or reduce Port liability;
– Set up a shared dredging fund between the Port, BAE Systems, and the Army Corps of Engineers, that will deepen the publicly accessible channel at the entrance to the shipyard and lead the way for federal maintenance dredging in the future;
– Forge an agreement between the Port and BAE Systems for pursuing possible funding opportunities for the replacement of the Port’s post-Panamax Drydock #2.
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