OOIL closes Long Beach terminal sale forced for national security reasons
COSCO-owned Orient Overseas (International) Limited (OOIL) has completed the sale of the Long Beach container terminal in California to a consortium led by New York's Macquarie Infrastructure Partners (MIP)
COSCO-owned Orient Overseas (International) Limited (OOIL) has completed the sale of the Long Beach container terminal in California to a consortium led by New York's Macquarie Infrastructure Partners (MIP).
The process was completed on October 24, the shipping line said in a Hong Kong stock exchange announcement.
As previously outlined, 100 per cent of shares of LBCT LLC, the operator of the terminal in California, United States, were sold to MIP for US$1.78 billion.
The sale was launched following the National Security Agreement entered into by OOIL, Faulkner Global Holdings Limited, a subsidiary of COSCO SHIPPING Holdings, the US Department of Homeland Security and the US Department of Justice on July 6, 2018, under which OOIL committed to divest its ownership of the Long Beach Container Terminal business.
The terminal divestment was undertaken by Cosco as part of its US$6.3 billion takeover of Orient Overseas International Limited (OOIL). US regulators required the concession in order to clear the merger.
As part of the deal, OOIL's Orient Overseas Container Line would sign a 20-year container stevedoring and terminal services contract.
The Long Beach container terminal has 4,200 feet (1,280 metres) of wharf line and the deepest dredged dockside of any US Pacific coast port. Pier E at the terminal will eventually run 14 ships to shore cranes, five intermodal cranes, and 70 yard gantry cranes.