The agreement extends through December 31, 2040.
Pasha has committed to an investment of over ten million dollars in improvements over the life of the agreement, including the improvement of the 5.71 acre tank farm property adjacent to Quay Street, as well as the assumption of additional utility and maintenance costs.
Benefits to the Port include a minimum annual guarantee of revenue from the number of vehicles imported each year. The minimum annual guarantee is approximately $5.2m during the first year of the new agreement, and increasing to $5.9m from years five through nine.
Additionally, Pasha will pay dockage, wharfage, and space occupancy charges, assume utility costs after 2011, and assume pavement maintenance on the terminal.
Pasha’s new agreement with the Port will also bring new cargo opportunities for the National City Marine Terminal. Besides its automobile imports and transportation services, Pasha may pursue general cargo, as approved by the Port District.
Pasha also benefits from its partnership under the Port District’s Environmental Fund program. Grants allowed Pasha to acquire Mazda Tribute HEC vehicles and replace older, less fuel-efficient vehicles with 14 newer, more fuel-efficient vehicles, which has reduced annual carbon emissions by 100,000 pounds.
A second grant awarded for a complete lighting retrofit replaced 1,399 fixtures, resulting in another annual 930,000 pounds lower carbon emissions.
George Pasha, IV, CEO of Pasha, said: “This new agreement is important in that it not only provides a long-term service solution for our OEM customers, but also for our company in supporting our investment in long-term assets such as the Jean Anne, which will serve the Hawaii market for at least 30 more years.”
Will the new deal benefit Pasha Automotive?
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