French shipping giant CMA CGM has completed the acquisition of 90% of Fenix Marine Services (FMS) terminal, one of the largest terminals in the Port of Los Angeles that provides container handling services to shipping lines.
With the 10% stake already owned by the company, CMA CGM has become the sole owner of the FMS facility.
To remind, the shipping giant agreed to buy a majority stake in FMS for $2.3 billion from the EQT Infrastructure III fund in November 2021.
This acquisition, funded from CMA CGM’s own resources, is bolstering the company’s position as a global port terminal operator. It is also in line with the Group’s strategy of developing its terminal business while supporting the growth and efficiency of its shipping lines.
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).
After taking over the operations of this strategic industrial facility, CMA CGM plans to accelerate FMS’ development with significant investments which include the extension of the container yard, expansion of the terminal’s rail capacity, and the construction of a new berth.
Furthermore, the FMS terminal is set to receive the first CMA CGM liquefied natural gas- (LNG) powered 15,000 TEU ships to be deployed on routes between Asia and the United States.
The ships are part of the company’s ongoing efforts to improve air quality and drive forward the energy transition of the shipping industry.
Source: Offshore Energy