The CMA CGM Group has signed a binding agreement to acquire GCT Bayonne and New York terminals, currently held by Global Container Terminals Inc (GCT).
CMA CGM — a global player in sea, land, air and logistics solutions — said the New York port area is a "strategic gateway" on the U.S. East Coast strengthening the CMA CGM global footprint in the U.S.
This will also complete CMA CGM's portfolio of 7 terminals in the U.S. and strengthens the Group’s position as a global port terminal operator.
"The Port of New York and New Jersey is a key entry point serving the Northeastern U.S. supply chain areas and represents CMA CGM’s largest gateway on the U.S. East and Gulf Coasts," the shipping line said, adding that the Bayonne and New York terminals, with an existing combined capacity of 2 million TEUs per year, have a potential for further expansion, up to almost double capacity.
It noted that while Bayonne terminal has the highest level of automation, the fastest truck turn time in the harbour, the closest ocean access, and an ability to service vessels of up to 18,000 TEUs, New York Terminal benefits from a highly productive labour force in the Port of New York and New Jersey and connects the dense New York hinterland with direct trucking and intermodal access.
After closing, the CMA CGM Group noted that it will operate the two strategic facilities as multi-user terminals under the leadership of the current management team and will continue focusing on improving its service quality to satisfy U.S. customers’ expectations, Investment in the infrastructure will be undertaken to meet both CMA CGM and local communities’ environment protection targets.
CMA CGM also intends to further develop its shipping line calls in the New York area for which the terminals will provide future capacity.
"The Group will significantly accelerate investments in the development of the Bayonne and New York terminals, with an objective to increase the combined capacity by up to 80 % in the coming years," CMA CGM said.
"This major acquisition will make it possible for CMA CGM Group to support U.S. East Coast supply chain growth and improve efficiency to and from the world," it added.
Boost to Group's global port terminal operator position
CMA CGM said this major investment is consistent with the Group's strategy of developing its terminal business while supporting the growth and efficiency of its shipping lines.
"With this acquisition, CMA CGM is bolstering its position as a leading global port terminal operator. Currently, the Group has investments in 52 port terminals in 28 countries, through CMA Terminals and its Terminal Link joint venture," it added.
Over the past year, the CMA CGM Group has significantly increased its presence in the U.S. including several acquisitions like the acquisition of Fenix Marine Services terminal in the Port of Los Angeles in January 2022, and the acquisition of Ingram Micro’s Commerce & Lifecycle Services business specializing in e-commerce contract logistics and omnichannel fulfilment, in April 2022.
CMA CGM said the closing of the transaction remains subject to the approval of the competent regulatory authorities.
"The acquisition of GCT Bayonne and GCT New York terminals is a strategic investment for the CMA CGM Group," said Rodolphe Saadé, chairman and CEO of 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," Saadé added.