The CMA CGM Group announced it will become the sole owner of the Fenix Marine Services (FMS) terminal at the Port of Los Angeles by acquiring the remaining 90% stake in a deal with an enterprise value of $2.3 billion.
“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,” Wednesday’s announcement said.
The French shipping giant already held a 10% stake in the terminal. CMA CGM is purchasing FMS from EQT Infrastructure III, according to the announcement.
“The swift recovery of the global economy has demonstrated the importance of ports and logistics infrastructure,” said Rodolphe Saadé, CMA CGM Group chairman and CEO. “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.”
FMS is the third-largest terminal in the LA/Long Beach port complex and can handle about 2.5 million twenty-foot equivalent units annually, according to CMA CGM, which said there is a long-term concession agreement in place through 2043. CMA CGM is the Port of LA’s largest shipping line customer.
CMA CGM said the FMS terminal has four berths, each more than 1,000 feet long; 16 cranes, with eight capable of handling ultra-large ships; eight rail tracks to ensure connectivity; a 292-acre container yard; and more than 700 reefer plugs with 24/7 monitoring.
The ocean carrier said it plans “significant investment” in FMS, including extending the container yard, increasing rail capacity, constructing another berth and continuing the terminal’s digital transformation.
The FMS terminal is expected to welcome the first CMA CGM liquefied natural gas-powered 15,000-TEU ships on services between Asia and the U.S. West Coast early next year.
CMA CGM said the acquisition is part of its comprehensive approach to the supply chain. The company currently has investments in 49 port terminals in 27 countries through two subsidiaries, CMA Terminals and Terminal Link.
The company also has moved into airfreight service, launching its own airline with four Airbus A3430-300 widebody freighters last February. CMA CGM Air Cargo currently flies to three U.S. cities as well as Dubai.
Closing of the FMS deal remains subject to regulatory approval. HSBC Continental Europe acted as the financial adviser. Willkie Farr & Gallagher served as the CMA CGM Group’s legal counsel.