The Connecticut Port Authority (CPA) has reached an agreement with Gateway New London LLC for the long-term operation of State Pier in New London.
The decision comes after a rigorous competitive selection process designed to determine the highest and best use of State Pier and to find a partner with the capability to deliver expanded economic opportunity to the state.
Under terms of the 20-year agreement, Gateway assumes operation of State Pier on May 1, 2019, with an option at the end of the term for the CPA to extend for two additional ten-year periods. The new contract requires that an annual fixed fee of $500,000 be paid to the CPA, increasing by $250,000 every five years. The CPA will also receive a variable fee of 7% of Gateway’s gross revenues at State Pier, with a minimum annual guarantee of $500,000 that has the potential to increase every five years based on Gateway’s percentage increase in gross revenues. Finally, Gateway will pay an annual wharfage and dockage fee equal to 50% of all wharfage and dockage user fees at State Pier. All together, these terms will provide CPA with a substantial increase in revenue versus the current operations.
This agreement presents an opportunity to expand the port’s role as an economic driver by increasing the overall traffic flowing through this key point of entry. Businesses and workers around the state will benefit from greater access to valuable markets.
Maximizing the potential of State Pier is the top priority of the 2018 Connecticut Maritime Strategy, released by CPA earlier this year. In support of that strategy, the CPA will work closely with Gateway to invest the funds provided through the recent Purchase Power Agreement and Zero Carbon initiative to make the pier even more attractive to the offshore wind industry and other emerging opportunities in the region.
