The approval by the Long Beach Board of Harbour Commissioners will give MSC, through its subsidiary Terminal Investments Ltd (TIL), 100% control the port’s Pier T terminal, which is leased to TTI, MSC already owns a 46% stake in TTI which it bought from Hanjin in 2012.
Bankrupt Hanjin accounted for 12% of the Port of Long Beach’s volume.
“This decision comes at a crucial time. With all of the changes that have taken place in the shipping industry in recent years, certainty is very important,” Board of Harbour Commissioners President Lori Ann Guzmán said. “Although we regret the loss of a long-term partner in Hanjin Shipping, we look forward to the opportunities that Terminal Investment Limited, Mediterranean Shipping Company, Hyundai Merchant Marine and their ‘2M Alliance’ partners will bring to Long Beach.”
As part of the deal MSC has to install two new cranes capable of handling 20,000 teu vessels with three years.