CMA CGM invests in Pacific Container Terminal
The world’s third largest shipping line, CMA CGM, has purchased a stake in the Port of Long Beach California, in a move which is expected to boost port revenues by approximately $70 million over the next five years.
Port officials announced the deal on Wednesday, stating that the France-based carrier will become a partner on the lease of Pier J, a 256 acre terminal. CMA CGM will partner in the operations of Pier J, which is home to the Pacific Container Terminal, one of few terminals in the world able to service new giant container ships.
The addition of CMA CGM will guarantee that the firm’s ships will call exclusively at the Port of Long Beach when using the San Pedro Bay gateway, and gives the shipping line a West Coast homeport. The port expects a growth of 2.6 million container units and increased Port revenues by about $70 million over the next five years.
The latest investment adds to a ten year, $4.5 billion capital improvement programby the Port of Long Beach, which includes upgrades to terminals, rail facilities and overall infrastructure.