Port of LA

9. RESOLUTION NO. ____________ - APPROVE THE THIRTEENTH AMENDMENT TO\nPERMIT NO. 692 WITH YUSEN TERMINALS, LLC; AND APPROVE GUARANTEES\nFROM OCEAN NETWORK EXPRESS HOLDINGS, LTD. AND OCEAN NETWORK\nEXPRESS PTE. LTD.\nSummary: Staff requests approval of the following concerning Yusen Terminals, LLC (Yusen), a\ntenant of the City of Los Angeles Harbor Department (Harbor Department) under Permit No. 692\n(Permit): 1) Thirteenth Amendment to Permit No. 692 which removes Nippon Yusen Kabushiki\nKaisha, Ltd. (NYK) as the guarantor and adds Ocean Network Express Holdings, Ltd. and Ocean\nNetwork Express, Pte. Ltd; and 2) Guarantees furnished by Ocean Network Express Holdings,\nLtd., and Ocean Network Express Pte. Ltd., in place of the existing guaranty from NYK. Yusen\nnotified the Harbor Department of a pending change in its ownership composition. Ocean\nNetwork Express Pte. Ltd., through a subsidiary, would acquire 51 percent of the interest in\nYusen from NYK, and Macquarie Infrastructure and Real Assets, L.P., a subsidiary of Macquarie\nGroup Limited, would continue to own the remaining 49 percent. In connection with this change\nin ownership, Yusen requested that Ocean Network Express replace NYK as the guarantor.\nUnder the Thirteenth Amendment, the existing guaranty provided by NYK would be terminated\nin favor of new guarantees furnished by Ocean Network Express Holdings, Ltd. and Ocean\nNetwork Express Pte. Ltd. Ocean Network Express Holdings, Ltd. is a joint venture which\nintegrated the container shipping businesses of NYK, Mitsui O.S.K. Lines Ltd. (a/k/a MOL Lines),\nand Kawasaki Kisen Kaisha, Ltd. (a/k/a “K” Line). Ocean Network Express Pte. Ltd. is a\nsubsidiary of Ocean Network Express Holdings, Ltd. No other changes will be made to the Permit\nor terminal operations under this action.\nRecommendation: Board resolve to (1) find that the Director of Environmental Management has\ndetermined that the proposed actions are administratively and categorically exempt from the\nrequirements of the California Environmental Quality Act (CEQA) under Article II Section 2(f)\nand Article III Class 1(14) of the Los Angeles City CEQA Guidelines; (2) approve the Thirteenth\nAmendment to Permit No. 692; (3) approve the Guarantees furnished by Ocean Network\nExpress Holdings, Ltd. and Ocean Network Express Pte. Ltd.; (4) direct the Board Secretary to\ntransmit the Thirteenth Amendment to Permit No. 692 to the City Council for approval pursuant\nto Section 606 of the City Charter; (5) authorize the Executive Director to execute and the Board\nSecretary to attest to the Thirteenth Amendment to Permit No. 692; and (6) adopt Resolution\nNo.____________.\nSPECIAL MEETING AGENDA