Cosco's OOIL sells Long Beach terminal to Macquarie for US$1.78b
ORIENT Overseas International Ltd (OOIL) announced that it has agreed to sell its Long Beach container terminal to a consortium led by infrastructure investment fund, Macquarie Infrastructure Partners (MIP), for US$1
ORIENT Overseas International Ltd (OOIL) announced that it has agreed to sell its Long Beach container terminal to a consortium led by infrastructure investment fund, Macquarie Infrastructure Partners (MIP), for US$1.78 billion.
OOIL said it expects to book an estimated gain before tax of about $1.29 billion from the sale of the terminal, according to Reuters.
The Hong Kong-based shipping line had said it would sell the container terminal after it was taken over by China's Cosco Shipping Holdings Co.
Cosco signed a national security agreement with the United States on July 6 last year agreeing to sell the Long Beach Container Terminal (LBCT) in order to gain clearance for the $6.3 billion takeover deal of OOIL.
As part of the sale to MIP, Orient Overseas Container Line Limited (OOCL), a subsidiary of OOIL, will enter into a container stevedoring and terminal services agreement for 20-years with Long Beach Container Terminal LLC, which operates the facility.
Commenting on the sale, Andy Tung, co-CEO of OOCL, said: 'Over the past thirty years, we have developed Long Beach Container Terminal into the safest, most efficient and lowest-emission terminal in the United States. We are confident of the future prospects of the terminal under the ownership of MIP and its co-investors, and we look forward to being a long term strategic customer of Long Beach Container Terminal and the Port of Long Beach.'
CEO of MIP, Karl Kuchel, commented that: 'This transaction marks another key milestone in our relationship with OOIL and we greatly appreciate their significant long-term customer commitment to LBCT. We look forward to partnering with the Port of Long Beach and the LBCT management team to ensure that LBCT delivers high-quality service to OOCL and our other customers going forward. We are also committed to completing the current expansion of LBCT by 2022, which will significantly increase the capacity of the terminal.'
The completion of the sale will be subject to approvals from the relevant regulatory authorities and other customary conditions, OOIL said in a statement.