French shipping company seals deal for Kingston terminal sale
French shipping group CMA CGM has concluded an agreement with China Merchants Port Holdings to sell its stakes in ten port terminals to Terminal Link.
Terminal Links was a joint venture between CMA CGM and China Merchants Port, which saw CMA CGM owning 51 per cent of Terminal Links and China Merchants Port with 49 per cent.
China Merchants Port will now be the sole shareholder in Terminal Link.
The US$968 million deal is part of CMA CGM’s efforts to finance the acquisition of Swiss logistics firm CEVA. China Merchants Port will also provide a loan of up to US$500 million to Terminal Link to finance the deal.
Terminal Link had won the Jamaican government’s 30-year concession agreement to operate the Kingston Container Terminal.
Analysts estimate that the divestment will result in more business for Jamaica as there could be an increase in cargo volumes at Kingston Freeport Terminal.
CMA CGM, the world’s fourth-largest container shipping company, is using money raised in the deal to expand inland logistics.
The terminals in the deal include Odessa Terminal (Ukraine), CMA CGM PSA Lion Terminal (Singapore), Mundra Terminal (India), Kingston Freeport Terminal (Jamaica), Rotterdam World Gateway (Netherlands), Gemalink (Cai Mep, Vietnam), Qingdao Qianwan United Advance Container Terminal (China), Vietnam International Container Terminal (Vietnam), Laem Chabang International Terminal (Thailand) and Umm Qasr Terminal (Iraq).
China Merchants Port said the transaction is in line with its strategy and marks a significant step of the company towards expanding its international footprint.
It expects that its existing network of terminal operations in China and globally will potentially complement and supplement the services offered by CMA CGM and Terminal Link.