Global shipping and logistics firm CMA CGM Group will acquire the GCT Bayonne and New York terminals at the Port of New York and New Jersey. Also, the Port of Oakland, Calif., reports November container volume declines.
The CMA CGM Group reported earlier this month that it has signed a binding agreement to acquire the GCT Bayonne and New York terminals, currently held by Global Container Terminals Inc. (GCT). The transaction’s closing remains subject to the approval of regulatory authorities.
The move follows CMA CGM Group’s January 2022 acquisition of the Fenix Marine Services terminal in the Port of Los Angeles. The Group currently has investments in 52 port terminals in 28 countries, through CMA Terminals and its Terminal Link joint venture.
According to CMA CGM Group, the Bayonne and New York terminals at the Port of New York and New Jersey have a combined capacity of 2 million TEUs (twenty-foot equivalent units) per year and “potential for further expansion, up to almost double capacity.” The Group said its objective is to increase the combined capacity by up to 80% “in the coming years.”
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,” CMA CGM Group said, 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.”
After closing, the CMA CGM Group said it will operate the two facilities as “multi-user terminals,” under the current management team, and plans to invest in the infrastructure “to meet both CMA CGM and local communities’ environment protection targets.”
CMA CGM Group noted that it intends to further develop its shipping line calls in the New York area for which the terminals will provide future capacity.
“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 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 Port of Oakland on Dec. 28 reported that total loaded container volume in November fell 15% from November 2021. It recorded 131,929 loaded TEUs compared with 155,252 TEUs in November 2021. Full imports decreased 17.4%, as the port handled 68,646 TEUs in November 2022 compared with 83,097 TEUs in November 2021. In October 2022, 79,459 TEUs passed through the port.
The port reported that full exports were down by 12.3%, with 63,283 TEUs in November 2022 vs. 72,155 TEUs in November 2021. There were 66,408 TEUs in October 2022.
“This decline is not unexpected,” Port of Oakland Maritime Director Bryan Brandes said. “Despite October gains, long-term indicators continue to predict a decline in demand for goods. The good news is that the reduction of incoming containers has allowed us to begin alleviating congestion at port facilities, increasing efficiencies in port operations.”
The port noted that with “the weakening of demand, ocean rates continue to drop. Sailings continue to be canceled and the introduction of new services has been postponed. As a result, the wait-time for berths is less than earlier this year, so ships are spending less time at Port of Oakland facilities. Terminal yards are also beginning to shed extra containers from their yards.”
Empty container exports rose 75.6% in November 2022 compared to November 2021, according to the port.