POLB Harbour Commissioners approve TTI sale to MSC

POLB Harbour Commissioners approve TTI sale to MSC
THE Port of Long Beach Harbour Commissioners approved the sale of Hanjin Shipping's 54 per cent stake in Total Terminals International (TTI) to Mediterranean Shipping Company (MSC) and its sister company Terminal Investment Ltd. (TIL).
The board approved the sale by a 3-to-1 vote, according to American Shipper.
MSC and TIL already held the additional 46 per cent stake in TTI, which has long-term leases and operating concessions at Pier T in Long Beach and Terminal 46 in Seattle.
Pier T terminal was the largest terminal at the port, accounting for about 27 per cent of the port's annual container volumes, Commission President Lori Ann Guzman said.
Pier T is located at the port's outer harbour, with 55 feet of water draft, no air draft constraints and has excellent on-dock rail facilities, Ms Guzman explained.
The agreement gives MSC sole control of the lease and requires installation of two new cranes capable of handling containerships with capacities of 20,000 TEU within three years.
Rich Dines, who cast the only dissenting vote, said although the agreement provides financial stability and certainty for stakeholders, he is concerned the port is not getting full value for the terminal.
"One can argue that our Pier T terminal is the most valuable container terminal in North America, and in my opinion, the agreement represents a real bargain for the tenant," Mr Dines said.
In addition, he said that despite his dissenting vote, he supports the tenant in "pursuing and achieving the full potential of this premier terminal."
A US bankruptcy court must still approve the sale.