OOIL Wraps Up Long Beach Container Terminal Sale
COSCO-owned Orient Overseas (International) Limited (OOIL) has completed the sale of the Long Beach container terminal in California to a consortium led by Macquarie Infrastructure Partners (MIP).
The process was completed on October 24, the shipping line said in a Hong Kong stock exchange announcement.
As previously outlined, 100% of shares of LBCT LLC, the operator of the terminal in California, United States, were sold to MIP for USD 1.78 billion.
The sale was launched following the National Security Agreement entered into by OOIL, Faulkner Global Holdings Limited, a subsidiary of COSCO SHIPPING Holdings, the U.S. Department of Homeland Security and the U.S. Department of Justice on July 6, 2018, under which OOIL committed to divest its ownership of the Long Beach Container Terminal business.
The terminal divestment was undertaken by COSCO as part of its USD 6.3 billion takeover of Orient Overseas International Limited (OOIL). U.S. regulators required the concession in order to clear the merger.
As part of the deal, OOIL’s Orient Overseas Container Line would sign a 20-year container stevedoring and terminal services contract.
The Long Beach container terminal has 4200’ feet (1,280 meters) of wharf line and the deepest dredged dockside of any U.S. Pacific Coast port. Pier E at the terminal will eventually run 14 ship to shore cranes, 5 intermodal cranes, and 70 yard gantry cranes.