PSA CONSOLIDATION IN HALIFAX

PSA International Pte Ltd (PSA) has consolidated its position at the Canadian East Coast port of Halifax (NS) by acquiring the second major cargo terminal at the port, in a process that will enable the company to better plan its future operating activities.

The acquisition of the Fairview Cove Container Terminal from NYK Line was on the radar of Canada’s Competition Bureau at the end of 2021 in case of “increased container handling fees or degraded service offerings” due to PSA operating both terminals. However, following a federal court approving the Bureau’s request to be provided with information relating to the deal for the 70-acre Fairview Cove Terminal, the government agency has now confirmed that it has officially “closed” its investigation, basically confirming no objections to PSA International closing the deal.

PSA has confirmed that the ability to offer closer coordination between the two terminals in the port will offer several key benefits, most notably in terms of gaining significant efficiencies. For example, larger ships can be directed to the Atlantic Hub (South End) facility where there is deeper water and larger cranes, while smaller ships (of under 8000TEU or less) can utilise the Fairview Cove terminal – this facility has greater restrictions on size of vessel that can be handled, notably on ship airdraft.

Overall, total container traffic in 2021 reflected a 17 per cent improvement over 2020 up to almost 596,000 TEU for 2021, but the challenge for PSA International at the port is to maintain the increases into 2022. Halifax has deep water and largescale container cranes but a smaller local population means there is also a need to target more distant (but highly competitive) discretionary markets in Canada and the US.

PSA first entered the East Coast Canadian market in 2019 when it acquired the South End Container Terminal from existing owner, Macquarie Infrastructure and Real Assets, and rebranded the 76-acre South End terminal as the Atlantic Hub. In 2021, a berth expansion was completed that allows two Super Post Panamax ships to be serviced simultaneously.