CMA CGM has agreed to buy two “flagship” terminals at the port of New York and New Jersey from Global Container Terminals.
The French liner giant will take control of GCT Bayonne and GCT New York, which have a combined capacity of 2m teu per year.
“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,” the company said.
The group said it had significant development plans for the terminals, including expanding its combined capacity by up to 80%. The increase will serve the company as it seeks to further grow its shipping line calls in the New York area.
The move is part of CMA CGM’s strategy to develop its terminal business and increase its presence in the US, having also bought back Fenix Marine Services’ terminal in the port of Los Angeles in January.
Overall, the group has investments in 52 port terminals in 28 countries through CMA Terminals and its Terminal Link joint venture, including five terminals in the US.
“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. It further consolidates our positions in the United States, a major market among the fastest-growing worldwide, and will help us continue our development,” said chairman and chief executive Rodolphe Saadé.
The announcement comes as the port of New York and New Jersey is on track for its strongest year on record, having grown 18.5% in 2021 from the previous year, and 9.4% in the year to date. It has taken the lead as the busiest port in the US in the past three months, overcoming both of its west coast competitors at Los Angeles and Long Beach.
A significant chunk of the port’s growth this year is due to cargo diversions from the west coast, where port congestion and a protracted labour dispute have led disruption-wary shippers to send their freight eastwards. It remains to be seen how much of the diverted cargo will remain in the port of New York and New Jersey and other east and gulf coast ports after the labour situation on the west coast is resolved.
After handling record levels of cargo for 26 straight months, the port of New York and New Jersey showed the first signs of slowing down in October amid a broader trend of declining imports to the US. Throughput declined by 0.5% year-on-year, while imports were down 4%, and the vessel backlog at its anchor has shrunk to average between two and three ships. Still, October’s throughput was 18.9% higher than in 2019, and while spot rates on the Shanghai-New York route were down 65% this year, they were up 12% on the New York-Rotterdam route and 17% on the Rotterdam-New York route, according to Drewry.
The acquisitions, announced late Tuesday, are subject to regulatory approvals.
Source: The Lloyd’s List