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OOCL to Sell Long Beach Terminal for Whopping Fee
Sea Freight

OOCL to Sell Long Beach Terminal for Whopping Fee

Deal set to go way into the billions

TLME News Service

Orient Overseas Container Line (OOCL) is to sell Long Beach Container Terminal (LBCT) to a consortium for US$1.78bn.

The buying party is led by Macquarie Infrastructure Partners (MIP).

LBCT is a major terminal at the USA’s second biggest port (Long Beach).

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OOCL CEO Andy Tung said: “Over the past 30 years, we have developed Long Beach Container Terminal into the safest, most efficient and lowest-emission terminal in the US.

“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.”

Under the terms of the deal, OOCL will also sign a container stevedoring and terminal services agreement with LBCT for a period of 20 years.

MIP CEO Karl Kuchel said: “This transaction marks another key milestone in our relationship with OOIL and we greatly appreciate their significant long-term customer commitment to LBCT.

“We are also committed to completing the current expansion of LBCT by 2022, which will significantly increase the capacity of the terminal.”

The deal is subject to approvals from the relevant regulatory authorities and other customary conditions.

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