Toyota Motor Sales U.S.A. Inc. has entered a $240 million deal with the Port of Long Beach, Calif. for a 20-year lease renewal. The agreement includes some environmental initiatives. This renewal means that Toyota will stay at its Pier B facilities until the end of 2028.
This lease agreement is retroactive to Jan. 1, 2009. Toyota, which became a port tenant in 1981, occupies around 144 acres in the northern portion of the port close to Pier B Street.
Each year, this port handles from 200,000 to 300,000 Toyota, Lexus and Scion units from Japan. Recently, Toyota said that it won’t import additional Camry sedans since it intended to produce all North American-sold Camrys in the U.S. to relieve the adverse impact of the strong Japanese yen on its earnings.
The models that Toyota imports include majority of Lexus models, all the Scion models, the Toyota Prius, 4Runner, Yaris and a big share of RAV4 and Corolla units.
The latest long-term lease had its signing in 1990 but it expired in 2006. Since then, Toyota had been on interim leases, according to the Port of Long Beach.
Under the agreement, there will be an annual rent of around $10 million and Toyota would have to invest in cutting air pollution related to operations, such as the use of cleaner fuel by vessels that carry cars.
In addition, by 2014, trucks that move the vehicles away from the terminal have to meet stringent emission standards under the clean trucks program of the port. An energy-efficient design would have to be used if Toyota builds more buildings on site.