You are here
Home | News Feed | CMA CGM Bolsters US Presence with Port of New York and New Jersey Terminal Acquisition

CMA CGM Bolsters US Presence with Port of New York and New Jersey Terminal Acquisition

Image: Global Container Terminals

CMA CGM, the renowned French shipping giant, has successfully concluded its acquisition of two pivotal container terminals at the Port of New York and New Jersey, solidifying its terminal network in the United States. The move comes as part of CMA CGM’s strategic expansion plan and represents a significant development in the maritime industry.

The acquisition of the GCT Bayonne and GCT New York terminals, formerly owned by Global Container Terminals, was initially announced in December, sparking anticipation within the shipping sector. These two terminals, strategically situated in Bayonne, New Jersey, and Staten Island, New York, contribute an impressive 2 million TEUs in capacity to CMA CGM’s US terminal portfolio, bringing the total count to seven facilities.

Notably, CMA CGM is committed to substantial investments in these terminals, with plans to boost their capacity by over 50% over the next decade. This initiative is projected to generate around 240 direct job opportunities and more than 700 construction jobs within the next seven years, reflecting the company’s commitment to local economic development.

One standout feature of this expansion is the enhancement of Bayonne’s Berth 3. Once completed, it will be one of the most advanced berths on the US East Coast, boasting a remarkable depth of 55 feet and the capability to accommodate containerships with capacities of up to 18,000 TEUs.

In August, the Port of New York and New Jersey granted lease amendments, allowing CMA CGM to assume terminal operations. These lease adjustments include provisions that tie rent payments to container throughput, with a minimum annual guarantee, and a revenue-sharing mechanism for excess container storage. CMA CGM has also taken on the responsibility of maintaining and rebuilding wharf and berth structures and has pledged to augment capacity at both facilities to meet growing demand.

Furthermore, CMA CGM has aligned with the Port Authority’s sustainability goals, aiming to achieve net-zero greenhouse gas emissions by 2050. This involves transitioning to zero-emissions material handling equipment, promoting renewable energy sources, setting goals for minority-owned, women-owned, and service-disabled veteran-owned businesses, and maximizing the utilization of locally owned businesses.

These two versatile facilities will continue to operate under CMA CGM’s terminal arm, led by their existing management team.

In a statement, CMA CGM expressed their pride in becoming the shareholders of GCT Bayonne and New York terminals, marking another milestone in their remarkable journey of expansion in the United States. This acquisition follows their 2021 deal to repurchase a 90% stake in the Fenix Marine Services terminal at the Port of Los Angeles, a testament to the company’s determination to strengthen its foothold in the US market.

Print Friendly, PDF & Email

“Disclaimer: “Breakbulk News & Media BV (Breakbulk.News) assumes no responsibility or liability for any errors or omissions in the content of articles published. The information and or article contained in these articles is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness or timeliness…”