CMA CGM and PSA Singapore Terminals (PSA) have confirmed that they will establish form a joint venture company CMA CGM-PSA Lion Terminal Pte. Ltd. (CPLT) to operate and use four mega container berths in Singapore.
CPLT will commence operations from the second half of this year, allowing CMA CGM and its shipping line affiliates to leverage on the port infrastructure and technologies with this latest Pasir Panjang expansion.
There was no disclosed investment amount for the joint venture deal, but CPLT will be providing long-term terminal services to CMA CGM and its shipping line affiliates, both companies said.
Rodolphe Saadé, Vice Chairman of CMA CGM Group: “CMA CGM is pleased to announce this important partnership with PSA. It is a significant step, demonstrating the ongoing importance of Singapore to our strategy, and delivering on our commitment to making Singapore the Asian hub for the Group.”
Tan Chong Meng, Group CEO of PSA International: “We are honoured to embark on this win-win partnership. CMA CGM-PSA Lion Terminal will cater to the volume growth of the CMA CGM Group in Asia. PSA looks forward to working alongside CMA CGM to ensure that its hub operations flourish, and enhance Singapore’s premier status as the world’s busiest transhipment hub.”
CMA CGM is in the process of acquiring 100% of Neptune Orient Lines (NOL) for $2.4 billion in its biggest-ever deal. CMA CGM currently controls over 78% of the Singapore-listed company, and has a cash offer on the table for all remaining shares.
CMA CGM will also move its Asian headquarters to Singapore from Hong Kong. CMA CGM is a leading worldwide shipping group. As of June 2016, it has 536 vessels that call at more than 420 ports in the world, on all five continents.
The move has implications for Westports Holdings, the operator of Port Klang's container terminal, which depends on CMA for 30 percent of its volume and the Ocean Alliance members together for more than half.