THE US Government's requirement that Hong Kong's Orient Overseas (International) Limited sell its Long Beach Container Terminal, does not mean Cosco-OOCL ships cannot use it, reports UK's Port Strategy of Fareham, Hampshire
THE US Government's requirement that Hong Kong's Orient Overseas (International) Limited sell its Long Beach Container Terminal, does not mean Cosco-OOCL ships cannot use it, reports UK's Port Strategy of Fareham, Hampshire. That's because the terms of the US$1.78 billion sale of the Long Beach Container Terminal sale to Macquarie Group's Olivia Holdings includes a 20-year usage agreement that ensures continued priority access to the facility for OOCL and Cosco vessels.
The agreement means that Cosco remains the major customer of the terminal, despite the sale of the terminal under the US government's requirement, said Drewry analyst Neil Davidson, who added that these rights would extend to fellow Ocean Alliance members, CMA CGM and Evergreen.
'As part of the sale deal there is a 20-year usage agreement signed with OOCL. So the terminal will continue to be used by OOCL, in effect Cosco, and by association the Ocean Alliance.'
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