CMA CGM Sells Interest in Los Angeles Terminal
The CMA CGM Group has sold its 90 percent equity interest in Global Gateway South terminal in Los Angeles to EQT Infrastructure III and its partner P5 Infrastructure for $875 million.
CMA CGM received a cash consideration of about $820 million. The company will remain a minority shareholder with 10 percent in the terminal and will continue to be a major user of the facility.
The disposal is part of CMA CGM's plan to strengthen its financial structure which was communicated at the time of NOL’s acquisition in June 2016.
CMA CGM has also signed an agreement with Total covering the supply of around 300,000 tons of LNG a year for 10 years starting in 2020. The unprecedented volume in the history of LNG bunker will fuel CMA CGM's nine newbuild container ships, scheduled for delivery beginning 2020 onwards.
In November, the group appointed Rodolphe Saadé to the position of Chairman of the Board and CEO of the CMA CGM Group, with Jacques Saadé as Founder-Chairman.
Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, said: “My father’s decision is an historic one for our Group which became a key global player under his chairmanship. Jacques Saadé is both an extraordinary entrepreneur and visionary. I will pursue with determination the development of our group and strengthen its position as a leader.”
During the third quarter, volumes carried by CMA CGM experienced growth of 11.6 percent compared to the same period last year. During the period, CMA CGM carried close to five million containers, a record figure. The increase was the result of strong growth in volumes carried through the OCEAN Alliance, on the Asia-USA and Asia-Europe routes, as well as on most of the North-South and Intraregional routes.
The increase in freight rates seen at the beginning of the year continued through the quarter, enabling an increase of 14.4 percent in average revenue per container carried. As a result, the group's revenues in the third quarter of 2017 rose sharply by 27.7 percent to $5.7 billion.