CMA CGM splashes $2.3bn to take back its former LA container terminal
CMA CGM has agreed to take over the Fenix Marine Services (FMS) terminal in Los Angeles, in a deal with an enterprise value of $2.3bn. The French containerline, which currently holds a 10% stake in the terminal, is buying back the remaining 90% from EQT Infrastructure III fund after selling it in 2017 for $875m.
FMS is the third-largest terminal in the Los Angeles/Long Beach port area in terms of capacity and one of the largest in North America. The terminal operates on a concession from the Port of Los Angeles expiring in 2043.
CMA CGM will take over operations after the transaction is completed, with plans to extend the container yard to increase terminal capacity and expand rail capacity to create one of the largest rail infrastructures in the US. In addition, the plan calls for the construction of a new berth and the continuation of the terminal’s digital transformation.
CMA CGM is one of the largest carriers on transpacific routes, operating 24 services. By early 2022, the FMS terminal should welcome the first CMA CGM liquefied natural gas-powered 15,000 teu ships to be deployed on routes between Asia and the United States.
The company said the FMS move is part of its strategy of developing terminal business while supporting the growth and efficiency of its shipping lines. CMA CGM currently has investments in 49 port terminals in 27 countries, through its two subsidiaries CMA Terminals and Terminal Link.
