CMA CGM will acquire two terminals at the Port of New York and New Jersey as the carrier continues to invest pandemic-fueled profits that were driven by huge container demand into key assets supporting its end-to-end logistics strategy.
The acquisition of Global Container Terminals’ (GCT) Bayonne and New York terminals for an undisclosed amount bookend the French carrier’s late 2021 purchase of Fenix Marine Services Terminal in the Port of Los Angeles for $2.3 billion.
“The acquisition of GCT Bayonne and GCT New York terminals is a strategic investment for the CMA CGM Group. It reinforces the services we provide to U.S. customers and their supply chain efficiency,” Rodolphe Saadé, CEO and chairman of the CMA CGM Group, said in a statement late Tuesday. “It further consolidates our positions in the United States, a major market among the fastest-growing worldwide, and will help us continue our development.”
New York-New Jersey is CMA CGM’s largest gateway on the US East Coast, and the carrier intends to further develop calls in the New York area for which the newly acquired terminals will provide future capacity.
CMA CGM, part of the Ocean Alliance, currently calls the Maher Terminal at NY-NJ, with one service calling the APMT facility, while GCT Bayonne is used by THE Alliance and GCT New York by Mediterranean Shipping Co. and Wan Hai.
The New York-New Jersey facilities will be used as multi-user terminals and will “significantly accelerate investments in the development of the Bayonne and New York terminals” to increase the combined capacity by up to 80 percent, CMA CGM noted in its statement.
“The Bayonne and New York terminals, with an existing combined capacity of 2 million TEU per year, have a potential for further expansion, up to almost double capacity,” CMA CGM said.
“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 TEU, 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,” it said.
The addition of the GCT facilities brings the carrier’s terminal network in the US to seven, and 52 terminals globally in 28 countries through CMA Terminals’ joint venture with Terminal Link.
String of acquisitions
Since fully acquiring CEVA Logistics in early 2019, CMA CGM’s immense profitability has allowed the Marseille-based carrier to make a series of targeted high-profile acquisitions in key geographies over the last two years and accelerate its end-to-end supply chain ambitions.
A month after the Fenix Marine terminal acquisition in November 2021, CMA made another giant US investment with the $3 billion acquisition of the commerce and lifecycle services business of US-based contract logistics and e-commerce specialist Ingram Micro.
In January 2022, the carrier acquired a majority stake in European last-mile logistics specialist Colis Privé, a parcel delivery company part-owned by Amazon, although the takeover price was not disclosed. In April, the carrier acquired Europe’s leading automotive logistics service provider Gefco, also for an undisclosed sum.
In addition to the ocean and logistics-focused acquisitions, CMA CGM has also made a rapid move into air cargo — acquiring new freighters or chartering aircraft and launching its own airline, CMA CGM Air Cargo, in March 2021. Then in May this year, CMA CGM signed a 10-year strategic partnership with Air France-KLM for the airline to operate the current combined fleet of 10 freighters with an additional 12 all-cargo aircraft on order from both parties.
Source:JOC
