Orient Overseas (International) Ltd. (OOIL) has sold its Long Beach Container Terminal (LBCT) for $1.78 billion to a consortium led by a North American subsidiary of Macquarie Infrastructure and Real Assets.
The Hong Kong–based shipping line last year said it would sell the container terminal after it was taken over by China’s COSCO Shipping Holdings Co. The U.S. government, which can regulate mergers for antitrust and security reasons, stated COSCO must sell its rights to the Container Terminal before it could buy OOIL.
As part of the agreement with Macquarie, OOIL will continue to have its ships call at LBCT with a minimum volume commitment under a 20-year container stevedoring and terminal services agreement. The Long Beach port is the nation’s second busiest and, along with the Port of Los Angeles, the nation’s main gateway for trade with Asia.
The terminal sale is subject to approval by the U.S. Department of Homeland Security and the Department of Justice.
The terminal is part of the port’s $1.4 billion Middle Harbor project that, when complete, will be the largest automated terminal on the West Coast. Construction of LBCT in the Port of Long Beach’s Middle Harbor began in 2011.
Macquarie partnerships are major investors in port assets and stevedoring. In North America, it owns 90 percent of the Port of New York and New Jersey; Maher Terminal in Elizabeth, N.J.; and a 49 percent interest in Yusen Terminals Ltd. in the Port of Los Angeles. In March, one of its partnerships acquired 100 percent of NYK Ports (North America).