The world’s third-largest container shipping line, France-based CMA CGM, purchased a stake in Pier J at the Port of Long Beach this past Wednesday, marking the company’s first investment on the West Coast.
The 256-acre terminal was attractive to the France-based company given its water depth—some 50-feet—that permits newer vessels, often called new or post-Panamax vessels, that have larger drafts to come in. Standard Panamax vessels usually have a beam or width of 32m and a length of about 294m; post-Panamax vessels have a beam of 49m and a length of 366m. In short, these newer vessels will bring in some 2.6 million additional container units, thereby increasing revenue to the Port by $70 million over the next five years.
This is possible not just due to Pier J’s size, but also in conjunction with the Panama Canal, whose authorities will open a third set of locks in 2014 which will permit post-Panamax vessels to cut through the Gulf of Mexico and into the Pacific.
“Of the large carriers, CMA was the only one that did not have a home locally. We are glad they’ve decided to call Long Beach home,” said the Port’s Executive Director Christopher Lytle. “This agreement validates the investments we are making in our facilities. We are committed to remaining the gateway of choice for trans-Pacific trade.”
The terminal at Pier J, home to Pacific Container Terminal, will share the space with China-based COSCO and SSA Marine.
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