1 September 2023 (Lloyd's List) - CMA CGM has finalised its acquisition of two terminals in New York from Global Container Terminals. GCT Bayonne and GCT New York will expand the French carrier’s US terminal portfolio to seven, following the reacquisition of the Fenix Marine Services terminal in Los Angeles in 2021.

“These two new assets provide the group with flagship terminal operations at a critical entry point on the US east coast,” CMA CGM said in a statement. This acquisition will strengthen the east coast’s role in securing the US supply chain and improve network resiliency.”

The two terminals will be run under the CMA CGM Terminals division, and CMA CGM said it would target increasing capacity at the terminals by 50% in the next 10 years. Development will include the expansion of Bayonne’s Berth 3, additional yard and berth capacity to increase fluidity at both terminals, and improved access to road and rail connections at the terminals.

Earlier this month the Port of New York and New Jersey Board of Commissioners voted to amend existing leases for the terminals in a move it said would pave the way for significant improvements and increased capacity.

The updated leases include increases in rent based on container throughput, with CMA CGM assuming full responsibility for wharf and berth repair and replacement, and substantial facility investments to increase container capacity.

“This lease agreement marks the beginning of a new chapter at two of our key container terminals,” said port authority chairman Kevin O’Toole. “We look forward to working with CMA CGM as these facilities reach their full potential, bringing even more jobs and economic growth to power the region.”

As part of the amended agreements, CMA CGM will pay increased rent based on container throughput, subject to a minimum annual guarantee, and will share revenue from excess container storage.

Additionally, CMA CGM will assume full responsibility for maintaining and rebuilding wharf and berth structures, as well as increasing capacity to meet demand, at both facilities.

At the time the acquisition was announced, chief executive Rodolphe Saadé said the terminals were a “strategic investment” for CMA CGM.

“It reinforces the services we provide to US customers and their supply chain efficiency,” he said. “It further consolidates our positions in the US, a major market among the fastest-growing worldwide, and will help us continue our development.”

New York released figures for July on Thursday showing it to be the busiest port in the US, handling 725,429 teu in the month, just 6.5% below the record levels of the same period last year, and 9.4% over the same period in pre-pandemic July 2019.

CMA CGM now has stakes in 59 terminals globally, both directly owned through its CMA Terminals division and via its Terminal Link joint-venture with China Merchants Port Holdings.