Orient Overseas Container Line (OOCL) has agreed to sell a 100% stake in Long Beach Container Terminal (LBCT) to a consortium led by Macquarie Infrastructure Partners (MIP) for US$1.78bn.
The sale follows legal wrangling in the US resulting from the sale of OOCL to COSCO Shipping, with several US governmental agencies reluctant to let LBCT fall into the hands of a Chinese state-owned terminal operator.
OOCL’s parent company OOIL, Faulkner Global Holdings, a subsidiary of COSCO Shipping Holdings and the US Department of Homeland Security and the US Department of Justice entered into a National Security Agreement in July 2018, under which OOIL committed to divest its ownership of LBCT.
As part of the sale, OOCL will also enter into a Container Stevedoring and Terminal Services Agreement with LBCT for a 20-year period.
Andy Tung, co-CEO of OOCL, stated: “Over the past thirty years, we have developed LBCT 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 LBCT and the Port of Long Beach.”
Karl Kuchel, CEO of MIP, said: “We are pleased to acquire LBCT, a premier terminal in the largest port complex in North America, which serves as a gateway for trans-Pacific trade.
“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.