Funds grand plans for LA terminal

Together with port operating firm, P5 Infrastructure, The EQT Infrastructure III fund said it plans to develop a value creation plan aimed at transforming the USD 875 million terminal into a “world class operation.”

Current owner, CMA CGM, will retain a 10% ownership stake in GGS and has entered into a long-term contract as the largest customer of the terminal.

Lennart Blecher, head of real assets and deputy managing partner at EQT, Investment Advisor to the fund, said: “The acquisition of GGS fits perfectly with EQT Infrastructure’s focused sector approach of targeting high-quality, well-located logistics assets with transformation potential.”

Farid Salem, executive officer of CMA CGM, added: “We are very pleased to partner with EQT Infrastructure. Together we will develop GGS into a world class terminal company. The terminal will remain an important part of our industry leading logistics network and will have an opportunity to grow alongside CMA CGM.”

GGS is the third largest terminal in the Ports of Los Angeles and Long Beach in terms of capacity, and operates under a long-term concession that runs through 2043.

EQT Infrastructure and P5’s strategy to develop the terminal includes significant capital investments in cranes, other handling equipment and technology to increase capacity and efficiency.

The transaction is subject to customary conditions. It is expected to close in the fourth quarter of 2017.