OAKLAND (BCN) — Port of Oakland officials announced the approval of an agreement Friday afternoon to terminate a 50-year lease for its second-largest terminal seven years after it was signed.

Outer Harbor Terminal LLC – a joint venture between HHH Oakland Inc., an indirect subsidiary of Ports America, and Terminal Investment Ltd. – announced Jan. 19 it intended to end operations at one of five privately operated terminals at the port.

Ports America had signed a 50-year lease to operate the facility early in 2009. The company signed the exceptionally long lease while promising to make improvements to the terminal’s infrastructure.

Under an agreement approved Friday to terminate that lease, the terminal will continue Oakland vessel and cargo operations through March 31 and will pay about $6 million in rent during that period.

The terminal operator will also clean up debris and remove equipment on the 166-acre property and must pay an additional $5.1 million for further cleanup and repair.Outer Harbor Terminal LLC has filed for Chapter 11 bankruptcy

protection, claiming to have been operating at a loss for years in Oakland, according to court filings from Feb. 1.

If the bankruptcy court approves the lease termination agreement, the Outer Harbor terminal will close on April 29.

As part of the agreement, the port is allowing the terminal operator to not pay rent in April to ensure the terminal remains open for cargo operations until then.

In the meantime, port officials said there’s a focus on minimizing the affect of the closure.

“We’re not pleased to see a terminal close, but this agreement helps ensure a smooth transition for our customers,” Port of Oakland Maritime Director John Driscoll said in a statement.

“All of our attention now is on efficiently migrating their cargo to the other terminals in Oakland,” he added.

To that end, port officials have developed a plan to move ships and cargo to adjacent terminals when the terminal closes.

A $1.5 million program to extend gate hours at the terminals has also been implemented, port officials said.