CMA CGM Plans Growth in Port Terminals with $2.4B Investment from Stonepeak
CMA CGM and Stonepeak announce the completion of their previously announced joint venture called United Ports, which will invest in the growth of the group’s port terminals. CMA CGM is calling it a milestone in the group’s port infrastructure development strategy, as the leading companies in container shipping each look to expand their port terminal operations.
Under the terms of the agreement, Stonepeak, which describes itself as an alternative investment firm specializing in infrastructure and real assets, is investing $2.4 billion to acquire a 25 percent stake in the new entity, while CMA CGM retains a 75 percent ownership stake as well as full operational control of the joint venture.
The companies report that the transaction will accelerate investments in port infrastructure and support the development of new international projects. As part of this port infrastructure joint venture, CMA CGM and Stonepeak plan to accelerate the development and modernization of the portfolio's terminals. This will include financing port capacity expansions, the acquisition of new cargo-handling equipment, enhanced logistics connectivity with rail and inland transport networks, as well as the deployment of infrastructure supporting the decarbonization of port operations, such as equipment electrification and shore power facilities.
United Ports has an initial portfolio of nine CMA CGM-operated port terminals in the United States, Brazil, Spain, Taiwan, and Vietnam. It includes Fenix Marine Services in Los Angeles, Port Liberty in New York and Bayonne, Santos, CSP Valencia and Bilbao, TTI Algeciras, Kaohsiung Terminal, and Gemalink.
The new joint venture is also part of a long-term expansion strategy. The companies report that the initial portfolio is expected to be expanded in the coming months with the addition of CMA CGM's stake in Nhava Sheva Freeport Terminal, subject to receipt of the required regulatory approvals.
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Stonepeak also has the option to invest up to an additional $3.6 billion to pursue new investment opportunities in high-growth port assets in partnership with CMA CGM through United Ports.
CMA CGM predicts the new investment and partnership will accelerate investments in new port capacity and improve the logistics offer for its customers.
