The CMA CGM Group, world leaders in maritime transport and logistics, has signed an agreement to acquire 90% of the Fenix Marine Services (FMS) terminal in Los Angeles, owned by EQT Infrastructure III, based on an enterprise value of 2.3 billion USD. CMA CGM already owns 10% of the terminal and will be the sole owner upon completion of the transaction.
State-of-the-art infrastructure at the heart of one of the world’s most important port areas
Third largest terminal in the ports of Los Angeles and Long Beach in terms of capacity (about 2.5 million TEUs) and one of the most important in North America, FMS benefits from a long-term concession until 2043.
The FMS terminal has a strategic deep-water location and first-class infrastructure:
4 docks of more than 300 meters each, with a 15-meter draft;
16 cranes, 8 of which can serve very large vessels;
8 rail tracks directly on the terminal for first-class rail connectivity;
118 hectares of storage space for containers;
Over 700 reefer outlets with 24/7 monitoring.
A major investment to support the activity of the Group’s clients
At the end of the acquisition process, the CMA CGM Group will assume the operational control of this strategic industrial tool, with the intention of strengthening the quality of service in order to better meet the expectations of its clients.
In this context, the development of FMS will be accelerated thanks to significant investments in the coming years:
- progressive extension of the container storage space to increase the capacity of the terminal;
- expansion of the rail capacity at the terminal in order to create one of the largest infrastructures in the country;
- creation of a new dock;
- further digitization of the terminal’s operations.
Additionally, in early 2022, the FMS terminal will welcome the first CMA CGM boats of 15,000 TEUs, powered by liquified natural gas, that will be deployed between Asia and the United States.
CMA CGM is eager to work with the experienced teams of FMS and to welcome them within the Group.
The finalization of the operation must be approved by the relevant regulatory authorities.
For this transaction, HSBC Continental Europe and Willkie Farr & Gallagher have acted as financial and legal advisors respectively for the CMA CGM Group.
According to Rodolphe Saadé, president-general director of CMA CGM: "The rapid recovery of the global economy has revealed the importance of port and logistics infrastructures. In order to increase the efficiency of 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 the country and one of its most strategic entry points. This key infrastructure will reinforce our position significantly and support our rapid growth on this market.”
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