CMA CGM in $2.3bn Los Angeles terminal splash

The $2.3bn deal sees CMA CGM acquiring 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 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: “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 tradelane.

The FMS terminal currently has four berths and 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 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 teu LNG-powered vessels between Asia and the US, calling at the FMS terminal.

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