The CMA CGM Group has agreed to buy a 90% stake in the Fenix Marine Services (FMS) terminal in Los Angeles, which is currently owned by EQT Connectivity III, for $2.3 billion. CMA CGM, which currently owns 10% of the terminal, will become the sole owner of the FMS facility following the transaction’s completion.
Following the closing, the CMA CGM Group will take over the processes of this corporate strategy industrial plant with the aim of boosting quality of service to better meet the expectations of its customers, according to a press release from CMA CGM.
In terms of capability (around 2.5 million TEU), FMS is the third-largest terminal in the Los Angeles/Long Beach port area and one of the biggest in North America. A lengthy commercial contract is also advantageous to the terminal. The first CMA CGM liquefied natural gas-powered 15,000-TEU ships to be utilised on paths between Asia and the United States will arrive at the FMS terminal in early 2022. This significant investment is coherent with the CMA CGM Group’s strategy to achieve its terminal business while continuing to support the productivity and success of its shipping companies and rising quality of service for its customers, in a sense which necessitates a comprehensive management strategy, according to the release.
The CMA CGM Group is one of the largest cargo carriers on transatlantic routes, operating 24 hours a day, seven days a week. It also offers personalized facilities in the Los Angeles/Long Beach area (value-added services, EXX express service, APL services dispatching US-flag ships as part of the US government’s maritime security programme, and so on).
CMA CGM is strengthening its status as a global port terminal operator with this obtaining, which was funded entirely by its own assets. Currently, the Group has 49 port terminal investment opportunities in 27 countries through its two subsidiaries, CMA Terminals and Terminal Link (joint venture).
“The global economy’s quick recovery has highlighted the significance of ports and transport and logistics.” We decided to purchase Fenix Marine Services in order to better manage our customs clearance on the West Coast of the United States. Fenix Marine Solutions is one of the nation’s largest depots and one of its most tactical access points. It is an important industrial facility that will significantly strengthen our stance and assistance our quick growth of the market.” CMA, CGM GROUP said.
