Orient Overseas (International) Limited’s wholly owned subsidiaries Orient Overseas Container Line and Long Beach Container Terminal have entered into an agreement to sell 100% of LBCT to a consortium led by Macquarie Infrastructure Partners for US$1.78 billion, subject to regulatory approval.

According to OOIL, the sale is pursuant to a national security agreement entered into by OOIL, Faulkner Global Holdings Limited, a subsidiary of COSCO SHIPPING Holdings Co., Ltd, and the US Departments of Homeland Security and Justice on July 6, 2018, under which OOIL committed to divest its ownership of the LBCT business.

As part of the sale, OOCL will also enter into a container stevedoring and terminal services agreement with LBCT for a 20-year period.

“Over the past 30 years, we have developed Long Beach Container Terminal into the safest, most efficient and lowest-emission terminal in the United States,” said Andy Tung, co-chief executive officer of OOCL. “We are confident of the future prospects of the terminal under the ownership of MIP and its co-investors, and we look forward to being a long-term strategic customer of Long Beach Container Terminal and the Port of Long Beach.”

MIP operates within the Macquarie Infrastructure and Real Assets division of the Macquarie Group, a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities.

“We are pleased to acquire LBCT, a premier terminal in the largest port complex in North America, which serves as a gateway for trans-Pacific trade,” said Karl Kuchel, chief executive officer of MIP. “This transaction marks another key milestone in our relationship with OOIL and we greatly appreciate their significant long-term customer commitment to LBCT. We look forward to partnering with the Port of Long Beach and the LBCT management team to ensure that LBCT delivers high-quality service to OOCL and our other customers going forward. We are also committed to completing the current expansion of LBCT by 2022, which will significantly increase the capacity of the terminal.”