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’s rail 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 this transaction 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.
