The CMA CGM Group, a global player in sea, land, air and logistics solutions, has signed a binding agreement to acquire GCT Bayonne and New York terminals, currently held by Global Container Terminals Inc.
The Port of New York and New Jersey, a key entry point serving the Northeastern U.S. supply chain areas, represents CMA CGM’s largest gateway on the U.S. East and Gulf Coasts. The Bayonne and New York terminals, with an existing combined capacity of 2 million TEUs (20-foot containers or equivalent units) per year, have a potential for further expansion, up to almost double capacity, the company said.
“The acquisition of GCT Bayonne and GCT New York terminals is a strategic investment for the CMA CGM Group,” Rodolphe Saadé, chairman and CEO of the CMA CGM Group, said. “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.”
While Bayonne terminal has the highest level of automation, the fastest truck turn time in the harbor, the closest ocean access and an ability to service vessels of up to 18,000 TEUs, New York Terminal benefits from a highly productive labor force in the Port of New York and New Jersey and connects the dense New York hinterland with direct trucking and intermodal access, CMA CGM noted.
After closing, the CMA CGM Group will operate the two strategic facilities as multi-user terminals under the leadership of the current management team and will continue focusing on improving its service quality to satisfy U.S. customers’ expectations. Investment in the infrastructure will be undertaken to meet both CMA CGM and local communities’ environment protection targets.
CMA CGM intends to further develop its shipping line calls in the New York area for which the terminals will provide future capacity. The company will 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. This major acquisition will make it possible for CMA CGM Group to support U.S. East Coast supply chain growth and improve efficiency to and from the world.
This major investment is consistent with CMA CGM Group’s strategy of developing its terminal business while supporting the growth and efficiency of its shipping lines and guaranteeing service quality for its clients. Currently, the company has investments in 52 port terminals in 28 countries, through CMA Terminals and its Terminal Link joint venture.
Over the past 12 months, the CMA CGM Group has significantly increased its presence in the U.S., with the acquisition of Fenix Marine Services terminal in the Port of Los Angeles in January and acquisition of Ingram Micro’s Commerce & Lifecycle Services business specializing in e-commerce contract logistics and omni-channel fulfillment in April 2022.
GCT Terminals will complement CMA CGM’s capabilities, including 24 shipping lines; a fleet of nine U.S.-flagged vessels operated under the American President Lines (APL) Lines brand; a portfolio of five terminal assets consisting of FMS and PMS in the Los Angeles area, Dutch Harbor in Alaska, Bayport in Houston and SFCT in Miami, and CEVA Logistics, a global operator in third party logistics.
With global headquarters in Marseilles, France, CMA CGM began its operations in the United States in the late 1980s and opened its U.S. headquarters in Norfolk, Va., in 2005. The company currently employs more than 15,000 people in the U.S.
The closing of this transaction, terms for which were not revealed, remains subject to the approval of the competent regulatory authorities.