FRENCH shipping giant cma CGM's US$600 million investment in its two newly acquired container terminals on the US east coast is a strategic move that reflects the company's confidence in the shifting dynamics of US importers.
According to the ocean carrier, this investment is a long-term wager on the growing trend of US importers diversifying away from China and gravitating towards India and Southeast Asia.
The ocean carrier emphasised that US ports should enhance their infrastructure to accommodate larger vessels servicing this trade route.
During a recent address in New York City, CMA CGM chairman Rodolphe Saade discussed the acquisition of the Port Liberty terminals at the Port of New York and New Jersey, describing them as a pivotal asset that will enable the company to avoid the berthing delays experienced during the Covid crisis-related container congestion.
While transitioning to its new Bayonne, New Jersey terminal is set for 2027, the company aims to expedite the move to its Staten Island, New York terminal.
'When you own the terminal, your ships can dock at your own 'home,' ensuring you don't face interminable delays in securing a berth,' said Mr Saade.
CMA CGM's Bayonne container terminal, recently acquired, has initiated work on a third container berth designed to accommodate ultra-large container vessels by early 2025.
The company plans to allocate US$400 million for the Bayonne expansion and potential capital projects over the next decade.
It's important to note that CMA CGM won't be the first to utilise the new berth at the Bayonne terminal due to an exclusive agreement for THE Alliance carriers until 2027.
However, CMA CGM intends to move certain more minor vessel services to its Howland Hook terminal on Staten Island at an earlier date.
'I hope by the end of this year we will be in a position to shift some of our service into the New York container terminal,' said Mr Saade.
'We call a couple of terminals in New Jersey, but the objective as we move forward is to put most of our liner services into one home.'
SeaNews Turkey
According to the ocean carrier, this investment is a long-term wager on the growing trend of US importers diversifying away from China and gravitating towards India and Southeast Asia.
The ocean carrier emphasised that US ports should enhance their infrastructure to accommodate larger vessels servicing this trade route.
During a recent address in New York City, CMA CGM chairman Rodolphe Saade discussed the acquisition of the Port Liberty terminals at the Port of New York and New Jersey, describing them as a pivotal asset that will enable the company to avoid the berthing delays experienced during the Covid crisis-related container congestion.
While transitioning to its new Bayonne, New Jersey terminal is set for 2027, the company aims to expedite the move to its Staten Island, New York terminal.
'When you own the terminal, your ships can dock at your own 'home,' ensuring you don't face interminable delays in securing a berth,' said Mr Saade.
CMA CGM's Bayonne container terminal, recently acquired, has initiated work on a third container berth designed to accommodate ultra-large container vessels by early 2025.
The company plans to allocate US$400 million for the Bayonne expansion and potential capital projects over the next decade.
It's important to note that CMA CGM won't be the first to utilise the new berth at the Bayonne terminal due to an exclusive agreement for THE Alliance carriers until 2027.
However, CMA CGM intends to move certain more minor vessel services to its Howland Hook terminal on Staten Island at an earlier date.
'I hope by the end of this year we will be in a position to shift some of our service into the New York container terminal,' said Mr Saade.
'We call a couple of terminals in New Jersey, but the objective as we move forward is to put most of our liner services into one home.'
SeaNews Turkey
