The board of the Port Authority of New York and New Jersey has given the green light on CMA CGM’s proposal to take over operations at two key container terminals, GCT Bayonne and GCT New York (Howland Hook).
Under the updated port leases, rent is increased based on container throughput, the Marseilles-based carrier has responsibility for wharf and berth repairs, and large-scale facility investments are outlined to boost throughput.
“We welcome CMA CGM as a key partner in the operation of two of our marine terminals, and look forward to working closely with CMA CGM in the future vigorous development of our seaports,” said Port Authority Executive Director Rick Cotton.
CMA CGM has agreed to work in line with the port’s sustainability goals, including its target to reach net-zero GHG emissions by 2050. Related measures include switching its material-handling equipment to zero-emissions technology, supporting renewable energy use and maximizing content from local businesses.
The French carrier had announced its plans to acquire the two terminals from GCT in December, 2022. Taken together, the facilities can handle about two million TEU per year. CMA CGM believes it can nearly double capacity with the right investments. The Bayonne terminal is the most automated in the port and can handle vessels up to 18,000 TEU in size.
The two terminals will remain multi-user facilities, and CMA CGM plans to retain the current management team.
(CMA CGM photo)
