French shipping company CMA CGM Group has finalized an agreement to become the sole owner of the Fenix Marine Services container terminal in Los Angeles, the company said Jan. 5.
Under the agreement, which was initially announced in November, CMA CMM is acquiring 90% of the company from EQT Infrastructure III for an estimated $2.3 billion.
The shipping company previously held a 10% stake in the terminal, but now has sole ownership and said that it plans to take over the operations of the facility with the goal of improving its service quality and invest in increasing container yard and terminal rail capacity, as well as build a new berth.
Fenix Marine is the third-largest terminal in the Los Angeles/Long Beach port complex terms of capacity—around 2.5 million TEUs—and one of the largest in North America. Beginning this year, the terminal’s expected to welcome the first CMA CGM liquefied natural gas-powered 15,000-TEU ships on routes between Asia and the United States.
Fenix, under four years of EQT Infrastructure ownership, grew 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.