Wednesday, February 8, 2023
spot_img
HomeHeadlinesCMA CGM to acquire flagship terminals in the Port of New York...

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

CMA CGM to acquire flagship terminals in the Port of New York and New Jersey

The CMA CGM Group, a global player in sea, land, air and logistics solutions, has signed a binding agreement to acquire GCT Bayonne and New York terminals, currently held by Global Container Terminals Inc (GCT).

Two major East Coast terminals in one of the world’s largest economic regions

The Port of New York and New Jersey is a key entry point serving the Northeastern U.S. supply chain areas and represents CMA CGM’s largest gateway on the U.S. East and Gulf Coasts. The Bayonne and New York terminals, with an existing combined capacity of 2 million TEUs per year, have a potential for further expansion, up to almost double capacity.

While Bayonne terminal has the highest level of automation, the fastest truck turn time in the harbor, the closest ocean access, and an ability to service vessels of up to 18,000 TEUs, New York Terminal benefits from a highly productive labor force in the Port of New York and New Jersey and connects the dense New York hinterland with direct trucking and intermodal access.

A strategic investment supporting CMA CGM’s ambitions for the U.S. market

After closing, the CMA CGM Group will operate the two strategic facilities as multi-user terminals under the leadership of the current management team and will continue focusing on improving its service quality to satisfy U.S. customers’ expectations. Investment in the infrastructure will be undertaken to meet both CMA CGM and local communities’ environment protection targets.

CMA CGM intends to further develop its shipping line calls in the New York area for which the terminals will provide future capacity. The Group will significantly accelerate investments in the development of the Bayonne and New York terminals, with an objective to increase the combined capacity by up to 80 % in the coming years. This major acquisition will make it possible for CMA CGM Group to support U.S. East Coast supply chain growth and improve efficiency to and from the world.  

Strengthening the Group’s position as a global port terminal operator

This major investment is consistent with CMA CGM Group’s strategy of developing its terminal business while supporting the growth and efficiency of its shipping lines and guaranteeing service quality for its clients.

With this acquisition, CMA CGM is bolstering its position as a leading global port terminal operator. Currently, the Group has investments in 52 port terminals in 28 countries, through CMA Terminals and its Terminal Link joint venture.

CMA CGM Group, a leading supply chain operator in the U.S. providing end-to-end services further expands its commitment to the U.S. economy

The CMA CGM Group has a long commitment to the U.S. economy and a strong presence through its port terminals portfolio and operational relationships with U.S. customers, including the U.S. government.

Over the past 12 months, the CMA CGM Group has significantly increased its presence in the U.S.:

  • acquisition of Fenix Marine Services terminal in the Port of Los Angeles in January 2022,
  • acquisition of Ingram Micro’s Commerce & Lifecycle Services business specializing in eCommerce contract logistics and omni-channel fulfillment, in April 2022.

GCT Terminals will complement CMA CGM’s capabilities, including:

  • 24 shipping lines,
  • A fleet of 9 U.S. flagged vessels operated under the American President Lines (APL) Lines brand, a trusted partner to the US government for ocean transportation and in country logistics for over a century,
  • A portfolio of 5 terminal assets consisting of FMS (100%) and PMS (10%) in the Los Angeles area, Dutch Harbor (100%) in Alaska, Bayport (26%) in Houston and SFCT (26%) in Miami,
  • CEVA Logistics, a world leader in third party logistics.

CMA CGM began its operations in the country in the late 80’s and opened its U.S. headquarters in Norfolk in 2005. The Group currently employs more than 15,000 people in the U.S.

The closing of this transaction remains subject to the approval of the competent regulatory authorities.

Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, said:“The acquisition of GCT Bayonne and GCT New York terminals is a strategic investment for the CMA CGM Group. It reinforces the services we provide to U.S. customers and their supply chain efficiency. It further consolidates our positions in the United States, a major market among the fastest-growing worldwide, and will help us continue our development.”

Related Posts

Video

Finance & Economy
Shipping News
Ports

Royal Caribbean set for record bookings after smaller loss

Royal Caribbean Group reported fourth quarter 2022 Loss per Share of $(1.96) and Adjusted Loss per Share of $(1.12). These results exceeded the company's...

Frontline: Emergency Arbitration claims initiated by Euronav fully dismissed

Frontline plc, formerly Frontline Ltd., announces that the Emergency Arbitration claims filed by Euronav have been fully dismissed by the Emergency Arbitrator. The decision was...

DP World reports solid volume performance in 2022

DP World Limited handled 79.0 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals in full year 2022, with gross container...

LNG boosts CPLP 2022 results

Capital Product Partners L.P. released its financial results for the fourth quarter ended December 31, 2022. Highlights  Three-month periods ended December 31, 20222021Increase/(Decrease)Revenues$79.9 million$63.6 million26%Expenses$42.1 million$35.7...

Keppel Corp posts 9% drop in full-year profit

Singapore’s Keppel Corp said on Thursday its net profit for the year fell 9%, partly hurt by weak performance from its urban development business...

Royal Caribbean set for record bookings after smaller loss

Royal Caribbean Group reported fourth quarter 2022 Loss per Share of $(1.96) and Adjusted...

Baltic Index Extends Fall On Lower Rates For Panamax, Supramax

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index hits nearly three-year low on weaker vessel demand

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index hits over 2-year trough on waning demand for larger vessels

The Baltic Exchange’s dry bulk sea freight index dropped to its lowest level in...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury...

Clarkson Port Services acquires offshore renewable energy service provider, DHSS

Clarkson announced that its wholly owned subsidiary, Clarkson Port Services, has completed the acquisition of DHSS, a leading provider of integrated logistics services to...

DP World reports solid volume performance in 2022

DP World Limited handled 79.0 million TEU (twenty-foot equivalent units) across its global portfolio of container terminals in full year 2022, with gross container...

DP World wins bid for development of a mega-container terminal at India’s Deendayal Port

DP World has won a major concession to develop, operate and maintain the mega-container terminal at Deendayal port in Gujarat, on the western coast...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury cruising will be one of the main highlights of the...

Port of Los Angeles proposes cruise terminal project

The Port of Los Angeles is inviting comments on a draft Request for Proposals (RFP) for the future development of a new Outer Harbor...