CMA CGM has completed the sale of its 90% equity interest in Global Gateway South Terminal (GSS), the third largest terminal in the Ports of Los Angeles and Long Beach in terms of capacity, to the investment firm EQT Infrastructure III (EQT Infrastructure) and its partner P5 Infrastructure (P5) for US$ 820 million.
It added that both EQT Infrastructure and P5 have developed a strategy that includes significant capital investments in cranes, other handling equipment and technology to increase capacity and efficiency.
The growth of the company will be supported by an industrial Board of Directors with significant ports and container shipping expertise.
CMA CGM, the third largest container shipping company by vessel capacity, will keep a 10% ownership stake in GGS and has entered into a long-term contract as the largest customer of the terminal.
The Port of Los Angeles, together with the Port of Long Beach, form the largest and most important gateway in North America for growing transpacific trade flows.
GGS operates under a long-term concession that runs through 2043.
The terminal is on track to handle over one million containers in 2017.
Read 'The Future is Here: Cargo Handling for Mega-Ships', a technical paper by CMA CGM, to learn about the company's achievements in the Trans-Pacific trade lane
When the sale was first announced in July, Lennart Blecher, Head of Real Assets and Deputy Managing Partner at EQT, Investment Advisor to the fund, said: “The acquisition of GGS fits perfectly with EQT Infrastructure's focused sector approach of targeting high-quality, well-located logistics assets with transformation potential.
“The combination of P5's and EQT's vast industrial expertise will be a great foundation for sustainable value-creation for the terminal. We are also very happy with CMA CGM's continued support and engagement”.
Farid Salem, Executive Officer of CMA CGM, commented: “We are very pleased to partner with EQT Infrastructure.
“Together we will develop GGS into a world-class terminal company.
“The terminal will remain an important part of our industry-leading logistics network, and will have an opportunity to grow alongside CMA CGM.
“Throughout the sales process, EQT Infrastructure and P5 have focused on growth in addition to a responsible, hands-on ownership approach, which we consider highly beneficial to our future partnership.”