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Los Angeles, California – Port Of Los Angeles may have received some good news today as CMA CGM has agreed to acquire Los Angeles terminal operator Fenix Marine Services, significantly expanding its footprint in the Los Angeles-Long Beach port complex.
The carrier group already owns a 10% stake in the box facility and will acquire the remaining 90% from private equity firm EQT Infrastructure III for $2.3 billion.
According to CMA CGM, the terminal is the third largest in the LA-LB gateway complex, with an annual handling capacity of approximately 2.5 million teu and an operating concession through 2034.
The global economy’s rapid recovery underscores the critical role of ports and logistics infrastructure.
According to Loadstar Premium, the French carrier “has ample financial flexibility at the moment to fund it through existing cash flow streams and balance sheet cash.”
According to the eeSea Liner database, the terminal currently serves two transpacific Ocean Alliance services – PSW1 and PWS3 – each of which operates four vessels with a capacity of 13,000 to 14,000 teu – three CMA CGM/APL express transpacific services, and SM Line’s CPX service.
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The terminal features four berths with a combined length of approximately 350 metres, 16 cranes, and eight inter-modal rail tracks.
CMA CGM added that upon completion of the transaction, it would expand the container yard’s rail capacity and construct a new berth. Additionally, it stated that the group’s LNG-fueled vessels would begin calling at the terminal early next year.
Fenix recently placed an order for four new ship-to-shore cranes worth $50 million.
Information to this point is Fenix’s management and staff, led by veteran terminal executive Sean Pierce, are expected to remain. The company is buying back control to change operation handling though so changes will be yet to be made on how this will effectively improve the situation beyond bringing it under the wind of CMA CGM’s massive umbrella.
The move comes as backlogged vessels, nearing 100, clutter the coasts of LA and Long Beach
In 2017, EQT acquired Fenix, formerly known as Eagle Marine Services.
CMA CGM also holds a 10% in Long Beach’s Pacific Container Terminal, with Cosco holding 46% and SSA Marine 44%.
