CMA CGM has closed on its acquisition to acquire two key container terminals at the Port of New York and New Jersey, expanding the French shipping company’s terminal footprint in the United States.
CMA CGM announced its intention to acquire the GCT Bayonne and GCT New York terminals from Global Container Terminals in December.
The two terminals, located in Bayonne, New Jersey and Staten Island, N.Y., will add approximately 2 million TEUs in capacity and bring CMA CGM’s U.S. terminal portfolio to seven facilities.
CMA CGM intends to increase investments in the terminals with plans to increase capacity by more than 50% during the next 10 years. The company said its development plan will add approximately 240 direct jobs and more than 700 construction jobs over the next seven years. It will also continue to develop Bayonne’s Berth 3 which, once completed, will be one of the most capable berths on the U.S. East Coast, with a depth of 55 feet and the ability to handling containerships up to 18,000 TEUs.
In August, the Port of New York and New Jersey approved lease amendments allowing CMA CGM to takeover terminal operations. The amended leases included stipulations requiring CMA CGM to pay increased rent based on container throughput, subject to a minimum annual guarantee, as well as share revenue from excess container storage. CMA CGM will assume responsibility for maintaining and rebuilding wharf and berth structures, and has agreed to increase capacity at both facilities to meet demand. CMA CGM has also committed to the Port Authority’s goal of achieving net-zero greenhouse gas emissions by 2050, upgrading to zero-emissions material handling equipment, promoting renewable energy, and contracting goals for minority-owned, women-owned, and service-disabled veteran-owned businesses, and maximizing the use of locally owned businesses.
The two multi-use facilities will be operate by CMA CGM’s terminal arm under their current management team.
“From today, CMA CGM is proud to be the shareholder of GCT Bayonne and New York terminals,” CMA CGM said in a statement.
The acquisition mark’s CMA CGM’s latest expansion in the U.S. following a 2021 deal to buy back its 90% stake in the Fenix Marine Services (FMS) terminal at the Port of Los Angeles. The company previously sold the stake in 2017, at less than half the value, to help pay for its takeover of Singapore’s Neptune Orient Lines (NOL).
Source: gCaptain
