The CMA CGM Group has signed an agreement to acquire a 90 per cent stake in the Fenix Marine Services (FMS) terminal in Los Angeles, currently held by EQT Infrastructure III, based on an enterprise value of $2.3 billion. Currently holding a 10 per cent stake in the terminal, CMA CGM will become sole owner of the FMS facility post transaction closing.
After closing, the CMA CGM Group will take over the operations of this strategic industrial facility with a goal of improving its service quality to better deliver upon its customers’ expectations, CMA CGM said in a press release.
FMS is the third-largest terminal in the Los Angeles/Long Beach port area in terms of capacity (around 2.5 million TEU) and one of the largest in North America. The terminal also benefits from a long-term concession agreement (through 2043). By early 2022, the FMS terminal will welcome the first CMA CGM liquefied natural gas-powered 15,000-TEU ships to be deployed on routes between Asia and the United States.
This major investment is consistent with the CMA CGM Group’s strategy of developing its terminal business while supporting the growth and efficiency of its shipping lines, and increasing service quality for its clients, in a context that requires a comprehensive approach to the supply chain, the release added.
The CMA CGM Group is one of the largest carriers of containers on transpacific routes, operating 24 services. It also offers specialised services (value-added services, EXX express service, APL services deploying US-flag ships as part of the US government’s maritime security programme, etc.) in the Los Angeles/Long Beach region.
With this acquisition, funded from its own resources, CMA CGM is bolstering its position as a global port terminal operator. Currently, the Group has investments in 49 port terminals in 27 countries, through its two subsidiaries CMA Terminals and Terminal Link (joint venture).
“The swift recovery of the global economy has demonstrated the importance of ports and logistics infrastructure. In order to manage efficiently our port operations on the West Coast of the United States, we have decided to acquire Fenix Marine Services. Fenix Marine Services is one of the largest terminals in this country and one of its most strategic gateways. It is a key industrial facility which will?significantly strengthen our position and support our rapid growth in this market,” Rodolphe Saade, chairman and CEO of the CMA CGM Group, said.