COSCO-owned Orient Overseas International Limited (OOCL) has sold the Long Beach Container Terminal (LBCT) to a consortium led by Macquaure Infrastructure Partners (MIP) for US$1.78 billion.
According to a statement, the sale will see OOCL enter into a Container Stevedoring and Terminal Services Agreement with LBCT for 20 years.
The completion of the sale will be subject to approvals from the relevant regulatory authorities and other customary conditions.
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The sale of the LBCT has come about following Chinese state-owned COSCO’s purchase of OOCL in July 2018, which was approved by US Homeland Security on the condition that the LBCT was sold to a third party.
Co-Chief Executive Officer of OOCL, said this to say about the sale: “Over the past thirty years, we have developed Long Beach Container Terminal into the safest, most efficient and lowest-emission terminal in the United States.
“We are confident of the future prospects of the terminal under the ownership of MIP and its co-investors, and we look forward to being a long term strategic customer of Long Beach Container Terminal and the Port of Long Beach.”
Karl Kuchel, Chief Executive Officer of MIP, said: “We are pleased to acquire LBCT, a premier terminal in the largest port complex in North America, which serves as a gateway for trans-Pacific trade.
“This transaction marks another key milestone in our relationship with OOIL and we greatly appreciate their significant long-term customer commitment to LBCT.
“We look forward to partnering with the Port of Long Beach and the LBCT management team to ensure that LBCT delivers high-quality service to OOCL and our other customers going forward.
“We are also committed to completing the current expansion of LBCT by 2022, which will significantly increase the capacity of the terminal.”