CMA CGM has acquired Fenix Marine Services (FMS), one of the largest container terminals in the Port of Los Angeles, United States of America(USA).
The $2.3bn deal ensured that CMA CGM acquired a 90% stake in FMS from private equity fund EQT Infrastructure III, making the French line the sole shareholder in the terminal.
The terminal has a capacity of around 2.5m TEU, is the third-largest in the Port of LA/Long Beach area, and has a long-term concession agreement through to 2043.
Rodolphe Saadé, Chairman and CEO of the CMA CGM Group said “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 LA and LB have been the focus on considerable media, and more recently federal government attention, over the last year as congestion has reached record levels with vessels waiting weeks to berth, and terminals running out of yard space.
CMA CGM operates 24 services on the transpacific between Asia and the US West Coast and is one of the largest operators on the trade lane.
The FMS terminal currently has four berths and a 292-acre container yard with more than 700 reefer plugs.
CMA CGM said that it would invest to extend yard capacity in a phased approach, expand rail capacity, and construct a new berth.
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 raking in huge profits in the current market are investing in the future with both acquisitions and vessels orders. This year has seen CMA CGM move into the air freight space setting up CMA CGM Air Cargo acquiring four secondhand freighters and ordering two new aircraft.
CMA CGM has been making significant investments in LNG fuelled tonnage and by early 2022 will be deploying 15,000 LNG-powered vessels between Asia and the US, calling at the FMS terminal.
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NIMASA set to open Lokoja office to harness waterways resources
The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh, has disclosed that the Agency is set to reopen the Lokoja office, as part of efforts towards harnessing the Blue Economy, enhancing collaboration, while also promoting Research and Development.
The DG, who made this known when he played host to the Executive Secretary of the Kaduna State Emergency Management Agency (KADSEMA), Mal. Usman Hayatu Mazadu at the head office of the Agency in Lagos, noted that investment in research would play a major role in ensuring the harnessing of Nigeria’s maritime potentials.
“The key cardinal principle of opening the NIMASA Lokoja office is to improve on Research and Development.
He said, “Now, the Blue Economy has come to stay and very soon you will see the impact of what we have; in terms of the gains and benefits to grow our Gross Domestic Product while improving the well-being of our own Economy”.
Earlier in his remarks, Mallam Usman of KADSEMA lauded the Agency for the feat achieved so far, which cuts across the entire Nigeria.
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