The majority owner of Fenix Marine Services, which operates a container terminal at the Port of Los Angeles, is looking at selling its 90% stake in the company, according to a news report.
In September, business news outlet Bloomberg published an article stating that EQT Infrastructure, a division of asset management company EQT AB, is exploring a sale of its controlling stake in Fenix Marine.
Fenix Marine Services, located on Terminal Island at the Port of Los Angeles, was previously known as Global Gateway South. It’s one of the largest marine terminals in North America, spanning nearly 300 acres, and achieves well over a million lifts annually, about two million TEUs, according to the company.
Fenix currently has a long-term container handline agreement with the Ocean Alliance, which comprises Cosco Shipping Lines, CMA CGM, Evergreen Line and Orient Overseas Container Line Ltd.
The facility has 23 entry/exit lanes, four 1,000-foot berths with minimum depth of 50 feet; eight post-Panamax & eight Super post-Panamax container cranes; eight working on-dock rail tracks with capacity for up to three double-stack trains at a time; and more than 210 yard tractors, among other features.
According to Bloomberg, EQT is working with advisory firm Rothschild & Co. to solicit interest in the terminal from potential suitors, including infrastructure funds, pension funds and strategic buyers. Bloomberg’s sources reportedly asked not to be identified discussing private information.
Fenix is projected to post $644 million revenue and $141 million of earnings before interest, taxes, depreciation, and amortization this year, according to a document sent to prospective bidders and reviewed by Bloomberg News.
The terminal has a gateway to growth via an expansion project that could extend its capacity by 1.1 million TEUs to 3.9 million TEUs by 2025, Bloomberg reported.
The terminal began operation in 1997 as Eagle Marine Services — a subsidiary of American President Lines. APL retained the terminal from 1997 until November 2017, when EQT acquired it from APL’s parent company, CMA CGM.
CMA CGM still retains a 10% stake in the terminal.