Logistec buys Fednav terminals

Logistec Stevedoring Inc. is buying the Canadian and U.S. marine terminal business of Fednav, including Federal Marine Terminals, Inc. and the logistics division, Fednav Direct (collectively, FMT).

The deal is worth US$105 million.

FMT has operated terminal facilities at ports in Canada and the United States for more than 50 years. It provides stevedoring, handling and warehousing services for bulk, containerized, project cargo, and general cargo. FMT also offers value-added on-carriage services, inventory management, and 24/7 inland cargo transportation in Canada and the United States.

For the year ended December 31, 2022, FMT generated revenue of US$89.8 million (approximately CA$116.8 million) with gross margins comparable to Logistec’s marine segment.

The addition of 11 terminals will be a major expansion of Logistec’s network, bringing its total to 90 terminals in 60 ports across North America. FMT’s terminals will give the company a foothold in the Great Lakes region and access to new locations in the U.S. Gulf and East Coast regions.

Fednav’s terminals are in Albany, New York; Burns Harbor, Indiana; Eastport, Maine; Hamilton, and Thorold, Ontario; Itawamba, Missouri; Lake Charles, Louisiana; Milwaukee, Wisconsin; and Port Manatee, and Tampa, Florida. They handle breakbulk, bulk, containerized, project, and general cargoes. The wide range of commodities handled includes cement, cocoa, containers, gypsum, machinery, steel, sugar, and wood pulp and forest products.

“We are delighted to welcome FMT to continue to grow together across Canada and the USA,” said Madeleine Paquin, president and CEO of Logistec.

Paquin added that the two companies have worked together for decades, and share similar values.

According to president and CEO Paul Pathy, Fednav will now focus on its shipping business.

The transaction is expected to close at the end of March, 2023, subject to closing conditions.