The CMA CGM Group, a world leader in shipping and logistics, has signed an agreement to acquire 90% stake in the Fenix Marine Services (FMS) terminal in Los Angeles, currently held by EQT Infrastructure III, based on an enterprise value of USD 2.3 billion. Currently holding a 10% stake in the terminal, CMA CGM will become sole owner of the FMS facility post transaction closing.
FMS is the third-largest terminal in the Los Angeles/Long Beach port area in terms of capacity (around 2.5 million TEU) and one of the largest in North America. The terminal also benefits from a long-term concession agreement (through 2043).
The FMS terminal has a strategic deep-water location and boasts first-class infrastructure:
- 4 berths, each more than 1,000 feet long and with a draft of 50 feet
- 16 cranes, 8 of which are capable of serving very large ships
- 8 rail tracks located within the terminal, ensuring first-class rail connectivity
- 292-acre container yard
- More than 700 reefer plugs with 24/7 reefer monitoring
As part of its plan, the Group will accelerate FMS’ development with significant investment in the coming years:
- Extension of the container yard to increase the terminal’s capacity in a staged approach
- Expansion of the terminal’s rail capacity in order to create one of the largest rail infrastructures in the United States
- Construction of a new berth
- Continuation of the terminal’s digital transformation
By early 2022, the FMS terminal will welcome the first CMA CGM liquefied natural gas-powered 15,000-TEU ships to be deployed on routes between Asia and the United States.
The closing of this transaction remains subject to the approval of the competent regulatory authorities.
HSBC Continental Europe acted as financial adviser and Willkie Farr & Gallagher as legal counsel to CMA CGM Group for this transaction.
CMA CGM, a leader in Transpacific trade
The CMA CGM Group is one of the largest carriers of containers on Transpacific routes, operating 24 services. It also offers specialized services (value-added services, EXX express service, APL services deploying U.S.-flag ships as part of the U.S. government’s Maritime Security Program, etc.) in the Los Angeles/Long Beach region.
Strengthening the Group’s position as a global port terminal operator
This major investment is consistent with the CMA CGM Group’s strategy of developing its terminal business while supporting the growth and efficiency of its shipping lines, and increasing service quality for its clients, in a context that requires a comprehensive approach to the supply chain.
With this acquisition, funded from its own resources, CMA CGM is bolstering its position as a global port terminal operator. Currently, the Group has investments in 49 port terminals in 27 countries, through its two subsidiaries CMA Terminals and Terminal Link (joint venture).
Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, said: “The swift recovery of the global economy has demonstrated the importance of ports and logistics infrastructure. 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.”