High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
French shipping company CMA CGM has formed joint venture to operate and use four megaship berths in Singapore as the company looks to expand its operations in Asia’s top shipping hub following its takeover of Singapore’s Neptune Orient Lines.
The joint venture was formed with PSA Singapore Terminals and will start operations in the second half of this year at the newly expanded Pasir Panjang Terminal Phases 3 and 4.
CMA CGM says the JV will provide long-term terminal services to CMA CGM and its shipping line affiliates, leveraging industry-leading port infrastructure at the Pasir Panjang expansion, which has the capacity and scale to service the world’s biggest ultra-large container vessels in the region.
CMA CGM is in the process of acquiring 100% of Neptune Orient Lines (NOL) for $2.4 billion in its biggest-ever deal. CMA CGM currently controls over 78% of the Singapore-listed company, and has a cash offer on the table for all remaining shares. Once CMA CGM reaches 90% ownership, the company will be able to force the remaining shareholders to sell and it will delist NOL.
CMA CGM is also planning to move its Asian headquarters to Singapore from Hong Kong and divert ships from Malaysia to the new terminal in Singapore.
“CMA CGM is pleased to announce this important partnership with PSA,” said Rodolphe Saadé, Vice Chairman of CMA CGM Group. “It is a significant step, demonstrating the ongoing importance of Singapore to our strategy, and delivering on our commitment to making Singapore the Asian hub for the Group.”
In April, CMA CGM announced an Asia-focussed alliance with China COSCO Shipping, Taiwan’s Evergreen Line and Hong Kong-based Orient Overseas Container Line, known as the “Ocean Alliance”.
In Singapore, PSA operates a total of 57 berths with a handling capacity of 40 million TEUs per year at its container terminals in Tanjong Pagar, Keppel, Brani and Pasir Panjang.
Join the 67,371 members that receive our newsletter.
Have a news tip? Let us know.