CMA CGM and PSA Singapore Terminals will form a joint venture company CMA CGM-PSA Lion Terminal (CPLT) to operate and use four mega container berths at Pasir Panjang Terminal (PPT) Phases 3 and 4 in Singapore.
CPLT will start operations from the second half of 2016, providing long-term terminal services to CMA CGM and its shipping line affiliates.
PPT Phases 3 and 4 were opened in June 2015, although the expansion will become fully operational by the end of next year, giving Singapore Port an annual capacity of 50m teu.
As part of CMA CGM’s takeover of Singapore-based carrier Neptune Orient Lines (NOL), the French business pledged to make Singapore its South East Asian hub, in addition to Port Klang in Malaysia.
Rodolphe Saadé, vice chairman of CMA CGM Group, said: “It is a significant step, demonstrating the ongoing importance of Singapore to our strategy, and delivering on our commitment to making Singapore the Asian hub for the Group.”
Tan Chong Meng, group CEO of PSA International, stated: “CPLT will cater to the volume growth of the CMA CGM Group in Asia.”
The deal would help to enhance Singapore’s status as “the world’s busiest transhipment hub,” he added.