CMA CGM Buying Fenix Marine Services from EQT Infrastructure

Fenix Marine Services
Fenix Marine Services
EQT Infrastructure has agreed to sell its stake in Fenix Marine Services to French shipping company CMA CGM. Photo via EQT Infrastructure.

EQT Infrastructure has agreed to sell its stake in Fenix Marine Services to French shipping company CMA CGM for $2.3 billion.

Fenix, one of the largest terminals at the Port of Los Angeles, provides container handling services to shipping lines. It handles about 2.3 million 20-foot equivalent units (TEUs) annually and employs more than 145 people, according to EQT.

Fenix, under EQT Infrastructure’s ownership since 2017, has grown into one of the larger and more efficient container terminals operating in the LA-Long Beach port complex.

EQT backed significant investments in new equipment and systems at the terminal, including some of the largest cranes in North America, as well as an extensive yard reconfiguration that increased terminal capacity by 40%, improved productivity, reduced turnaround time for truckers , and improved safety.

The company also bankrolled the installation of automated gates and implementation of advanced inventory tracking systems, as well as the launch of innovative machine learning technology to optimize terminal operations.

In addition, EQT converted its entire equipment fleet to renewable diesel, eliminating over 10 million pounds of greenhouse gases to date, and also is testing low-carbon hydrogen fuel-cell technology with partners, including Toyota.

“Fenix Marine Services plays an integral role in the complex North American supply chain,” Alex Darden, head of EQT Infrastructure’s U.S. Advisory Team, said. “We have been proud to support its mission of operational excellence and capacity growth to best meet consumer needs both before and during a pandemic that has highlighted the importance of Port of Los Angeles as a critical trade gateway.”

“Today, Fenix Marine Services is one of the most efficient and environmentally friendly terminals in North America,” he added.

“EQT Infrastructure is confident that CMA is the right partner to continue this incredible progress, ensuring the terminal’s operational efficiency and fluidity to the benefit of the entire port community,” the company said in a prepared statement.

The transaction is subject to customary regulatory approvals.