CMA CGM, the world’s third-largest container shipping line, purchases a stake in the Port of Long Beach’s Pier J.
The deal will bring an additional 2.6 million container units to the Port and increase Port revenues by about $70 million over the next five years.
The investment makes the Marseille, France-based ocean carrier a partner in the lease and operations of the 256-acre terminal. It also marks CMA CGM’s first investment in a port on the West Coast of North America and guarantees that its ships will call exclusively at the Port of Long Beach when using the San Pedro Bay gateway.
Pier J is home to Pacific Container Terminal. With a water depth of about 50 feet and 17 post-Panamax gantry cranes, it is one of the few terminals in the world capable of servicing the new generation of giant container ships.
Pacific Container Terminal has been operated as a joint venture between global maritime services company SSA Marine and COSCO, a China-based ocean carrier. CMA CGM became a partner in the venture in November and officially announced the agreement on December 11, 2012.
CMA CGM vessels have been calling at the Port for many years, but the new arrangement gives the shipping line a West Coast homeport and strengthens the bond with Long Beach.
“This first new investment for our Group on the U.S. West Coast will reinforce our position in North America,” said Farid Salem, CMA CGM Group Executive Officer. “It demonstrates CMA CGM’s strong involvement to develop transport infrastructure and to improve quality of service to our customers. By investing in Pier J, the Group ensures that the largest vessels deployed in the trans-Pacific trade will be efficiently managed.”