French shipping group CMA CGM will acquire two key container terminals at the Port of New York and New Jersey.
The terminals, GCT Bayonne in New Jersey and GCT New York on Staten Island, are currently held by Global Container Terminals Inc (GCT) and have a current combined capacity of 2 million TEUs per year, with room for growth.
“While Bayonne terminal has the highest level of automation, the fastest truck turn time in the harbor, the closest ocean access, and an ability to service vessels of up to 18,000 TEUs, New York Terminal benefits from a highly productive labor force in the Port of New York and New Jersey and connects the dense New York hinterland with direct trucking and intermodal access,” CMA CGM said in a statement.
The Port of New York and New Jersey has emerged in recent months as the leading container port in the country thanks to shifting of inbound cargo volumes away from the U.S. West Coast, where labor negotiations have prompted importers—fearing disruption—to land a bigger share of container imports at East and Gulf Coast ports.
After closing, CMA CGM says it will operate the two facilities as multi-user terminals under the leadership of the current management team and continue focusing on improving its service quality to satisfy U.S. customers’ expectations. It will also invest in infrastructure to meet both CMA CGM and local communities’ environment protection targets.
CMA CGM says it intends to further develop its shipping line calls in the New York area, for which the terminals will provide future capacity. “The Group will significantly accelerate investments in the development of the Bayonne and New York terminals, with an objective to increase the combined capacity by up to 80 % in the coming years. This major acquisition will make it possible for CMA CGM Group to support U.S. East Coast supply chain growth and improve efficiency to and from the world,” the company said.
Global Container Terminals will retain its full ownership of GCT Canada and its terminals, GCT Deltaport and GCT Vanterm, operating in the Port of Vancouver.
The addition of the two terminals will be bring CMA CGM’s portfolio to seven terminals in the United States. It will also strengthen CMA CGM’s position as a global port terminal operator, with investments in 52 port terminals in 28 countries through CMA Terminals and its Terminal Link joint venture.
“The acquisition of GCT Bayonne and GCT New York terminals is a strategic investment for the CMA CGM Group,” commented Rodolphe Saadé, Chairman and CEO of the CMA CGM Group. “It reinforces the services we provide to U.S. customers and their supply chain efficiency. It further consolidates our positions in the United States, a major market among the fastest-growing worldwide, and will help us continue our development.”
The closing of this transaction remains subject to the approval of regulatory authorities.
CMA CGM launched its U.S. operations in the late 80’s and has had its U.S. headquarters in Norfolk since 2005. The group currently employs more than 15,000 people in the U.S.
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