Chiquita Brands International (NYSE:CQB) could continue its operations in the U.S. Port of Wilmington in Delaware until 2029 under the recently signed lease extension, new information has revealed. 

An agreement reached between the fruit company and the port's authority Diamond State Port Corporation (DSPC) is for a five-year period, and includes two additional five-year lease renewal options.

A press release described the Port of Wilmington as Chiquita's 'mid-Atlantic distribution hub' and said thanks to the new contract it will continue to be known as 'Top Banana' by handling a larger quantity of the fruit than any other North American port.

Chiquita first consolidated its supply chain operations at the port in 1988. It currently leases 28.7 acres of land and makes roughly 52 port calls annually.

Chiquita operates a fully containerized service between Central America and Wilmington discharging bananas and pineapples, along with other tropical fruit and vegetables, and loading back forest products, used automobiles and general cargo.

DSPC executive director Gene Bailey said he was glad such an important client would remain at the port for some time.

"We are extremely pleased that Chiquita has decided to sign a new lease with the port and continue our long and "fruitful" relationship," Bailey said in a statement

"Chiquita is a most important customer and responsible for hundreds of jobs and the resultant and significant economic impact to our Port, state and region.

"We are grateful to the Governor and the General Assembly for the support which has allowed us to make those capital equipment acquisitions and infrastructure improvements needed to retain Chiquita's business despite a very competitive environment."

Chiquita senior vice president of global logistics Mario Pacheco echoed Bailey's remarks praising the strong business relationship between the two entities.

"The Port of Wilmington is an important destination for Chiquita and our customers. We are pleased that we have reached an agreement that will enable us to continue to call Wilmington home for many years to come," Pacheco.

"Wilmington is a great partner for Chiquita and we look forward to growing our business together in the years ahead."

Photo: Wikimedia Commons

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