JACKSONVILLE, Fla. -- Jacksonville Port Authority and Mayor John Peyton announced Thursday morning the signing of an initial agreement with Hanjin Shipping Co. Ltd. to develop a $360 million container terminal in Jacksonville.

The memorandum of understanding allows the port authority and Hanjin to negotiate a contract regarding construction, financing and operations of the facility that could be located at the site of the former Jefferson Smurfit paperboard plant.

The agreement was signed by all three parties Thursday in a ceremony at the Hanjin headquarters in Seoul, South Korea.

"Today's agreement with Hanjin underscores Jacksonville's new role in global trade," said Rick Ferrin, executive director of the Jacksonville Port Authority. "With this historic signing, not one, but two major players in the international shipping arena have given notice in a big way that JAXPORT is the place to be."

"Jacksonville is well on its way to becoming one of the largest and most successful port cities on the East Coast and the premier logistics and transportation hub in the Southeastern United States," Peyton added. "The board and staff at JAXPORT have done a tremendous job attracting shippers of this magnitude, which complements the city's efforts to attract high-wage jobs for residents and increase economic opportunities."

Officials said that the annual economic impact of the facility could reach $1 billion when the facility is operational in four years. It could also make Jacksonville a major port for international commerce.

"Along with containers, you're going to have warehousing jobs, transportation jobs, labor staffing jobs, clerical positions, logistical positions, and many more, managerial," said port worker Dwayne Kinsey. "I think you're going to see the housing market up around the Northside go up. I think you're going to see commerce grow greatly out there."

Hanjin is Korea's largest, and one of the world's biggest, container carriers moving more than 100 million tons of cargo annually while operating in more than 50 countries. In the United States, Hanjin's subsidiary, Total Terminal International currently operates dedicated terminals in Long Beach and Oakland, Calif., and Seattle.

The agreement calls for the 170-acre Hanjin Shipping Terminal in Jacksonville to begin operations in 2011 with capacity to handle 1 million 20-foot equivalent units annually. This measurement equates to more than 7.5 million tons of cargo.

"Our board's focus has always been on providing jobs and opportunity for the people of Jacksonville," said Tony Nelson, chairman of the JAXPORT's board of directors. "This is a most satisfying move toward fulfilling that goal."

The Hanjin Shipping Container Terminal, Jacksonville is expected to generate at least $1 billion in economic activity in Northeast Florida and create thousands of new direct and indirect jobs for the region.

The proposed Hanjin Shipping Container Terminal, Jacksonville will be JAXPORT's fifth marine terminal and Hanjin's first dedicated operation on the East Coast. This strategic move is meant to capitalize on the expansion of the Panama Canal and the anticipated increase of container traffic along the east coast. No specific site has been designated for the terminal at this time.

"Hanjin is involved in developing new terminals around the world, and we are pleased to begin talks with JAXPORT," said J.W. Park, Hanjin Shipping president and chief executive officer. "Our aim in locating on the East Coast is to offer upgraded service, lower costs and improved schedules to our customers. The Hanjin Shipping Container Terminal, Jacksonville will definitely help us accomplish that."