Posted on December 7, 2022
Shipping giant CMA CGM Group has signed a binding agreement to acquire two container terminals in the Port of New York and New Jersey as part of the group’s efforts to strengthen its terminal operations and investment in the North American market. The investment comes at a time when the Port of New York and New Jersey has been the most active container port in the United States.
CMA CGM entered into the agreement with Global Container Terminals, which operates the two terminals in the New York New Jersey port as well as two other terminals in British Columbia, Canada. The French group will acquire the GCT Bayonne and GCT New York terminals. After the closing, the CMA CGM Group reports it will operate the two strategic facilities as multi-user terminals under the leadership of the current management team. CMA CGM says that the two terminals currently have a combined capacity of 2 million TEUs per year, but also have a potential for further expansion, up to almost double their current capacity.
GCT Bayonne calls itself the closest container terminal to the harbor entrance, saying that its position can reduce transit total time by more than four hours. The facility incorporates 167 acres with a 2,700-foot berth. The Bayonne terminal is also reported to have the highest level of automation and the ability to service vessels of up to 18,000 TEUs.
GCT New York is located on Staten Island near the Goethals Bridge. The terminal occupies 187 acres and features on-dock rail service, and is the only facility in the harbor with an on-dock Centralized Examination Station and a 66,400-square foot refrigerated warehouse. It has a 3,012-foot of contiguous berth and six post-Panamax cranes. The berth was deepened to 50 feet in 2015.
“The acquisition of GCT Bayonne and GCT New York terminals is a strategic investment for the CMA CGM Group,” said Rodolphe Saadé, Chairman and CEO of the CMA CGM Group. “It reinforces the services we provide to U.S. customers and their supply chain efficiency. It further consolidates our positions in the United States, a major market among the fastest-growing worldwide, and will help us continue our development.”
The company is saying that it intends to further develop its shipping line calls in the New York area for which the terminals will provide future capacity. The group will also significantly accelerate investments in the development of the Bayonne and New York terminals, with an objective to increase the combined capacity by up to 80 percent in the coming years.
The acquisition round outs CMA CGM’s portfolio to seven terminals in the U.S. and according to the company will strengthen the group’s position as a global port terminal operator. They are reporting that the Port of New York and New Jersey is CMA CGM’s largest gateway on the U.S. East and Gulf Coasts.
With this acquisition, CMA CGM is also expanding its position as a leading global port terminal operator. Currently, the group has investments in 52 port terminals in 28 countries, through CMA Terminals and its Terminal Link joint venture.