LetterforJOFOC_Logistec.POC 2025 Agreement Exec 12.12.24.pdf

This document is an Operating Agreement between the Cleveland-Cuyahoga County Port Authority and LOGISTEC USA INC. for terminal operations at the Port of Cleveland, effective April 1, 2025, with an initial one-year term extendable for nine additional one-year renewal periods.

The Operator will provide exclusive stevedoring, terminal, and related services for handling general cargoes (steel coils, plate, beams, wire rod, heavy lift, project cargo) and containers at Docks 22-28 and the General Cargo Terminal. The Operator will manage all activities at four warehouse facilities (Warehouse 26 at 76,300 square feet; Warehouse 24 at 79,000 square feet; Warehouse A at 138,000 square feet; and Warehouse 22 at 21,300 square feet) plus the Maintenance Shed at 800 square feet. Fixed charges total $650,000 annually, payable at $54,166.67 monthly. The Operator will also pay volume-sharing fees of $1.20 per metric ton for the first 200,000 metric tons, $0.95 per metric ton for 200,001-300,000 metric tons, and $0.45 per metric ton for metric tons over 300,001. Equipment rental includes two Cummins Hyster Reach Stackers at $10,000 per year each and two Liebherr 280 Mobile Harbor Cranes invoiced hourly per the Authority's Tariff No. 1-B. The Operator must maintain comprehensive general liability insurance of $10,000,000, property insurance covering full replacement cost, and workers' compensation insurance. The Operator is responsible for all maintenance and repairs except structural elements and the Overhead Crane, which are the Authority's responsibility. Environmental compliance obligations require the Operator to report incidents and remediate contamination arising from its operations. The agreement includes provisions for modification of facilities, damage/destruction scenarios, and default remedies including termination and damages calculations.