CMA CGM TO ACQUIRE FLAGSHIP TERMINALS IN THE PORT OF NEW YORK & NEW JERSEY

France-headquartered 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 (GCT)

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 (GCT).

The Port of New York and New Jersey is a key entry point serving the Northeastern US supply chain areas and represents CMA CGM’s largest gateway on the US East and Gulf Coasts. The Bayonne and New York terminals, with an existing combined capacity of 2 million TEUs per year, have a potential for further expansion, up to almost double capacity, CMA CGM believes.

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 highlighted.

A strategic investment for the US market

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 US customers’ expectations. Investment in the infrastructure will be undertaken to meet both CMA CGM and local communities’ environment protection targets, the Franceheadquartered group said.

CMA CGM said 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 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 % 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.

Global port terminal operator

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. With this acquisition, CMA CGM is bolstering 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. The CMA CGM Group stressed that it has a long commitment to the U.S. economy and a strong presence through its port terminals portfolio and operational relationships with U.S. customers, including the U.S. government.

CMA CGM began its operations in the country in the late 1980’s and opened its US headquarters in Norfolk in 2005. The Group currently employs more than 15,000 people in the US.

The closing of this transaction remains subject to the approval of the competent regulatory authorities.

Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, said:

The acquisition of GCT Bayonne and GCT New York terminals is a strategic investment for 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 fastestgrowing worldwide, and will help us continue our development.

CPG demonstrates commitment to growth, bolstering national network

ContainerPort Group (CPG®), a national drayage provider built on an asset-first model and offering coast-to-coast capacity, announced the opening of a new terminal in Jacksonville, Florida. This new terminal demonstrates CPG’s commitment to growth in strategic markets and expands the company’s existing footprint in the southeast region.

The Jacksonville Port Authority (JaxPort) continues to invest in their facility, and several of our commercial partners already utilize the port for both imports and exports, making now the perfect time for us to plant our flag in this market. We are confident that we will swiftly establish ourselves as the premier trucking outfit in the Jacksonville market, strengthening our position in the southeast and furthering our vision of covering every port and every rail across the US.

Joey Palmer, President, CPG

Jacksonville provides an ideal geographic location to capture additional market share in the Southeast region. Its recently completed harbor deepening project provides a 47 foot channel depth, which can accommodate newer and larger post-Panamax vessels. And with three major highways, three major railroads, and 152 million square feet of distribution and warehousing space near the port, CPG and its customers can be assured that their freight will move quickly to and from the port.

CPG intends to expand its fleet by contracting drivers who are certified to handle hazardous materials and tankers, in order to provide diverse solutions to its customers. To facilitate the rapid growth of the CPG fleet in the market, the Jacksonville terminal will have a fleet of private chassis on site, elevating driver efficiency in and out of ports and terminals. Drivers can also utilize DrayPal, CPG’s custom mobile app, to help streamline their day-to-day operations and improve the efficiency of their business.

We are already seeing a spike in driver applications as word of our new terminal spreads and they hear about the experience and tools we provide to help them succeed, like DrayPal, private chassis, our family-like atmosphere, and more. Our expansion plans include helping NVO and BCO partners who need a drayage provider with nationwide network strength that is properly equipped to handle all of customers' dray business. Ultimately, our goal is to leverage this terminal to move more volume throughout the entire Southeast region.

Dawn Cline, Terminal Manager, CPG

Investing in its new Jacksonville terminal highlights CPG's commitment to delivering coast-to-coast drayage services to customers and expanding driving opportunities for independent contractors in the region. Recently, CPG has reinforced its commitment to designing custom solutions for customers with the introduction of Dedicated Services, providing reliable capacity and delivering exceptional intermodal services.