CMA CGM acquires FMS terminal in Los Angeles for $2.3 billion

Fenix ​​Marine Services (FMS) Waterfront in Los Angeles (Image: FMS)

 
The $2.3 billion deal saw CMA CGM acquire a 90% stake in Fenix ​​Marine Services (FMS) from the private equity fund EQT Infrastructure III, making the French company the sole shareholder in the port.

FMS has a capacity of approximately 2.5 million TEU, is the third largest terminal in the Los Angeles/Long Beach port area, and has a long-term concession agreement through 2043.

Rodolphe Saadé, President and CEO of CMA CGM Group: “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.”

The ports of Los Angeles and Long Beach have made headlines in the media, and more recently, the federal government, in the last year as congestion reached record levels with ships having to waited weeks to dock and the ports were full.

CMA CGM operates 24 services on the transpacific service between Asia and the US West Coast and is one of the largest carriers operating on this route.

FMS Wharf currently has four jetties and a 292-acre container yard with over 700 cold plugs.

CMA CGM said it will invest to expand yard capacity in a phased approach, expand rail capacity and build a new berth.

Fenix ​​Marine Services (FMS) Waterfront in Los Angeles (Image: Phaata)

Sean Pierce, CEO and President of FMS, said, “Our vision was always to deliver on operational excellence and to do things better than they have been done before.

“All employees at Fenix Marine Services, whether on the front line in Port of Los Angeles or at our back-office in Arizona, have been critical in delivering that vision. This transaction is a testament to the strength and fortitude of the team.”

Cash-rich container lines that are reaping huge profits in the current market are investing in the future with both acquisitions and shipbuilding orders. This year, CMA CGM entered the air freight sector with the establishment of CMA CGM Air Cargo, the acquisition of four used transport aircraft and the order of two new aircraft.

CMA CGM has been making significant investments in LNG fuel tankers and in early 2022 will deploy 15,000 TEU LNG-powered vessels between Asia and the United States, calling at the FMS terminal.

See more:

• CMA CGM ordered two B777 freighters to expand in air cargo
• CMA CGM announces Q2 financial report with strong increase in revenue and profit
• Signing of a MoU for the acquisition of 30% of Groupe DUBREUIL Aéro by the CMA CGM Group

Source: Phaata.com (According to Seatrade-Maritime)

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