The CMA CGM Group is buying the Fenix Marine Services (FMS) terminal in Los Angeles.
The shipping line is one of the largest carriers of containers on Transpacific routes, operating 24 services. It already holds a 10 percent share of the business that is valued at US$2.3 billion.
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 has a long-term concession agreement (through 2043).
The FMS terminal has a deep-water location with four berths, each more than 1,000 feet long and with a draft of 50 feet. Sixteen cranes load and unload, and half are capable to handling very large ships. The 292-acre yard is served by eight rail lines, and has space for 700 refrigerated containers.
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.
“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,” said Rodolphe Saadé, chairman and CEO of the CMA CGM Group.
“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.”
In the coming years CMA CGM says it plans to extend the container yard and rail capacity, build a new berth and continue digitizing operations.
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 says it plans to retain FMS staff.
The closing of this transaction still requires regulatory approval.