Turkish terminal operator Yilport Holding has opened talks with COSCO Shipping Holdings to buy a container terminal located in Long Beach, California, according to Bloomberg.
The facility, which has an estimated value of US$2 billion, has also been subject to offers from two other bidders, including Australian investment fund Macquarie.
COSCO, one of the largest shipping companies in the world, agreed to sell its terminal in Long Beach as part of a deal with US regulators to acquire its competitor Orient Overseas International Ltd. (OOIL).
— Port Technology (PTI) (@PortTechnology) July 2, 2018
In order to receive approval for its acquisition, which required sign-off from the US after receiving the green light from China and the EU, the terminal had to be made available to a third party.
The Port of Long Beach, where the terminal is situated, is an important part of the trans-Pacific supply chain and one of the busiest seaports in the US, handling a record-breaking container volume of approximately 8 million TEU in 2018.
Dr. Noel Hacegaba, Port of Long Beach, discusses supply chain efficiencies in a recent Port Technology technical paper
Bloomberg has also revealed that Yilport is launching a series of strategic investments worth $2.2 billion over the next three years, funds that will be spent on expanding port projects and pursuing new concessions around the world.
This initiative, which if successful will see Yilport become one of the top ten terminal operators globally, included the attempted purchase of terminal operator Ports America Holdings Inc. in 2017.