French container shipping company CMA CGM Group has signed an agreement to acquire a further 90% stake in Fenix Marine Services’ (FMS) terminal in the Port of Los Angeles, based on an enterprise value of $2.3 billion.
The group previously held a 10% stake in the terminal, and this acquisition will now make it the sole owner of the FMS facility. This is set to support the company’s rapid growth in the US.
Once the deal has closed, CMA CGM will take over the operations of the facility with the goal of improving its service quality and capacity to better deliver upon its customers’ expectations. To do this several developments will be invested in in the coming years, including:
- An extension of the container yard to increase the terminal’s capacity in a staged approach.
- An expansion of the terminal’s rail capacity in order to create one of the largest rail infrastructures in the United States.
- The construction of a new berth
- The continuation of the terminal’s digital transformation
The terminal is also set to welcome the first CMA CGM liquified natural gas-powered 15,000 TEU ships which will be deployed on routes connecting Asia and the US. This is expected in early 2022.
“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.”
The closing of this transaction is subject to the approval of the competent regulatory authorities.
BigCommerce previously signed a strategic partnership agreement with CMA CGM to enable thousands of its subsidiary NewOxastis’ merchants to build world-class digital storefronts. Announced in October 2021, the partnership equips merchants with a new online sales channel, fully integrated with information systems using ERP and product information management software, along with CRM and marketing tools.