CMA CGM is acquiring LA terminal operator Fenix Marine Services (FMS), expanding its footprint in the Los Angeles-Long Beach (LA-LB) port area.
The French container line will acquire FMS from private equity fund EGT Infrastructure III for $2.3 billion. CMA CGM currently has a 10% stake in the terminal, but the transaction, in which they will buy back the remaining 90%, will give them sole ownership.
With this acquisition, the company is looking to strengthen its position as a global port terminal operator. It has investments in 49 port terminals in 27 countries, through its two subsidiaries CMA Terminals and Terminal Link (joint venture).
With an annual handling capacity of around 2.5m teu, FMS is the third largest terminal in the LA-LB port area. The terminal operates on a concession from LA port expiring in 2043.
“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,” said Rodolphe Saadé, chairman and CEO of CMA CGM Group.
At the time that CMA CGM have full operational control, the container line 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. At present the terminal has four berths of around 350 metres, is equipped with 16 cranes and has eight intermodal rail tracks.
By early 2022, FMS 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.
We continue to monitor the situation and will keep you updated. Should you have any enquiries regarding specific bookings, please contact our Customer teams.