The CMA CGM Group signed a binding agreement to acquire GCT Bayonne and New York terminals, currently held by Global Container Terminals Inc (GCT). GCT Bayonne and GCT New York terminals are leading assets with development plan to support US supply chains for all operators. New York port area acts as a strategic gateway on the U.S. East Coast strengthening the CMA CGM global footprint in the US. The acquisition completed CMA CGM’s portfolio of 7 terminals in the US and strengthens the Group’s position as global port terminal operator.
The Port of New York and New Jersey is a key entry point serving the North-eastern US supply chain areas and represents company’s largest gateway on the U.S. East and Gulf Coasts. The Bayonne and New York terminals, with an existing combined capacity of 2m TEUs per year, have a potential for further expansion, up to almost double capacity.
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 company 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 US customers’ expectations. Investment in the infrastructure will be undertaken to meet both CMA CGM and local communities’ environment protection targets.
CMA CGM 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. This major acquisition will make it possible for CMA CGM Group to support US East Coast supply chain growth and improve efficiency to and from the world.
This major investment is consistent with CMA CGM Group’s strategy of developing its terminal business while supporting the growth and efficiency of its shipping lines and guaranteeing service quality for its clients. With this acquisition, CMA CGM is bolstering its position as a 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.
Over the past 12 months, the CMA CGM Group has significantly increased its presence in the US, through the acquisition of Fenix Marine Services terminal in the Port of Los Angeles in January 2022 and acquisition of Ingram Micro’s Commerce & Lifecycle Services business specializing in eCommerce contract logistics and omni-channel fulfilment, in April 2022.
GCT Terminals will complement CMA CGM’s capabilities, including 24 shipping lines, a fleet of 9 US flagged vessels operated under the American President Lines (APL) Lines brand, a portfolio of 5 terminal assets consisting of FMS (100%) and PMS (10%) in the Los Angeles area, Dutch Harbor (100%) in Alaska, Bayport (26%) in Houston and SFCT (26%) in Miami and CEVA Logistics, a world leader in third party logistics.
“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.” Says Rodolphe Saadé, Chairman and CEO of the CMA CGM Group.
Source: CMA CGM
