Full Volume 19 - Federal Maritime Commission

694 FEDERAL MARITIME COMMISSION
29 The need to encourage
and support a terminal operator to
consolidate blocks of tonnage to justify the use of the more modem
break bulk Port Authority piers Was particularly important at the Brooklyn
Port Authority Marine Terminal Facilities since the physical confJgUl lltion
of the piers was suited to the piers being occupied by a single occupant
In contrast to the Brooklyn piers Port Newark break bulk facilities were
the wharf type offacilities and were more easily subdivided between
different users
30 The principal purpose for establishing a substantial minimum rent
was to induce the respective user of a Port Authority pier to confme its
operations to a smaller number ofpiers and not to begin operating on two
or three piers at atime without the required amount of cargo to make
such an operation successful The minimum rent requirement was
designed to encourage as many carriers to use the Port as possible For
this reason the Port Authority did not want to establish facility use
charges for the piers solely on a revenue ton basis or on a tariff basis
31 The tlexible rent program based on the mini max formula was to
be implemented at the Brooklyn Marine Terminal by executing amend
ments to the lease agreements in effect with the current users of the
facilities These amendments would change the terms and conditions
under which charges were assessed for the facilities from afIXed sum per
year charge to charges computed by multiplying the number of revenue
tons moving over the pier in anyone year by 2 00 with a maximum
and a minimum
charge not to exceed the prior year s tixedsum payment
charge of not less than one halfthe prior year s fIXed sum payment
32 The mini max rental formula based on a 2 00 a ton rate was
comparable to the prevailing charges at other terminals in the Port of
New York and at other Atlantic ports and was responsive to the
obligations and needs of both the Port Authority and the break bulk
industry in the Port of New York
33 The minimum charge established by the Agreements between the
Port Authority and the respective parties to the Agreements guarantees to
the Port Authority an amount of revenue which is below the fully
distributed costs of the Port Authority allocated to each of the piers
subject to the Agreements The maximum charge established by the
Agreements would exceed the fully distributed costs of the Port Author
ity 34 The Port Authority recognized that the level of revenue by the
Agreements would not meet its allocated costs in the first year of
operation By the third year of operation the Port Authority expects the
revenues which the Port Authority would receive under the payment
provisions of the Agreements will equal or exceed these costs
35 The Port Authority s rate of 2 00 a revenue ton is higher than the
previous effective per ton rate at the Pouch facility or proposed effective
rate at the Pouch facility
36 The Port Authority s Brooklyn Marine Terminal facilities are
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