APM Terminals (APMT) has signed a lease agreement with the Virginia Port Authority (VPA) to allow the use of its terminal for 20 years.

Under the agreement, the authority will annually pay $40m to APMT for its one million teu terminal.

The VPA will also pay incentives if cargo volumes at the terminal exceed 500,000teu a year.

The lease will grant the port authority, and its operating arm Virginia International Terminals, access to move cargo through the APMT’s cargo facility on the Elizabeth River.

As part of the treaty, APMT Virginia will be governed and maintained by the VPA’s operating branch, Virginia International Terminals, according to the APMT.

After 20 years, the lease will give the port authority additional temporary capacity to handle cargo while it develops it $2.5bn Craney Island terminal.