MOL forms strategic terminal alliance

Under the agreement, MOL will transfer a partial stake (49%) in its subsidiary International Transportation Inc (ITI) to a Brookfield operated fund. ITI is a holding company of TraPac, which operates container terminals in the US ports of Los Angeles and Oakland.

Andrew Willis, spokesperson at Brookfield Asset Management, told Port Strategy: “MOL wants to use the alliance to expand its terminal operation business worldwide.”

He pointed out that Brookfield has established the joint venture to add value to its existing container terminals and to “participate in future expansions in growing regions.”

“These are gateway terminals that handle significant volumes and this is a great opportunity for Brookfield infrastructure to invest at good value in a sector it knows well and to expand its ports platform into North and South America,” he added.

The arrangement will see Brookfield using TraPac’s renowned expertise in top level terminal operation.

Brookfield’s portfolio of infrastructure assets are primarily in the utilities, transport and energy sectors. The company owns PD Ports in the UK, Euroports in Continental Europe and Dalrymple Bay Coal Terminal (DBCT), the world’s largest coal terminal in Australia.