CMA CGM to acquire one of the largest port terminals in the United States
Fenix Marine Services: a key infrastructure asset to support CMA CGM’s rapid growth in the U.S.
A major investment in the Los Angeles/Long Beach region, the U.S. market’s most strategic gateway.
Plan to accelerate the terminal’s development to offer improved capacity and quality of service to our customers.
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.
State-of-the-art infrastructure at the heart of one of the world’s largest port regions 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,
• a 292-acre container yard,
• more than 700 reefer plugs with 24/7 reefer monitoring.
A major investment to support the Group’s customers and their business After closing, the CMA CGM Group will take over the operations of this strategic industrial facility with a goal of improving its service quality to better deliver upon its customers’ expectations. 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’srail 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. CMA CGM is looking forward to working as terminal operator with FMS' experienced teams and to welcoming them into the broader family of CMA CGM terminals. The closing of thistransaction 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.”
About CMA CGM
Led by Rodolphe Saadé, the CMA CGM Group, a global leader in shipping and logistics, serves more than 420 ports around the world on five continents. Backed by a fleet of 542 vessels, in 2020 the Group transported nearly 21 million TEU (twenty-foot equivalent units) containers. With its subsidiary CEVA Logistics, a world leader in logistics, which transports 400,000 tons of air freight and 2.8 million tons of land freight each year, and its air freight division CMA CGM AIR CARGO, the CMA CGM Group is continually innovating to offer its customers a complete and increasingly efficient range of new shipping, land, air and logistics solutions. Committed to the energy transition in shipping, and a pioneer in the use of alternative fuels, the CMA CGM Group has set a target of carbon neutrality by 2050. An approach involving ongoing improvement which brings concrete results, with a decrease of 4% in the total CO₂ emissions of the Group in 2020. Through the CMA CGM Foundation, every year the Group helps thousands of children through its actions to promote education for all and equal opportunity. The CMA CGM Foundation also acts in humanitarian crises that require an emergency response by mobilizing the Group’s shipping and logistics expertise to bring humanitarian supplies around the world. Present in 160 countries through its network of more than 400 offices and 750 warehouses, the Group employs more than 110,000 people worldwide, including 2,400 in Marseilles where its head office is located. In the United States, CMA CGM Group, which is headquartered in Norfolk, Va., employs more than 12,000 people. Its subsidiary, American President Lines (APL), operates a fleet of U.S.-flagged vessels and supports U.S. territories and American military stationed around the world.
