Evergreen makes US$76 million investment in Oakland terminal23/08/2023
Evergreen Marine Corporation’s terminal operating subsidiary Everport Services has invested US$76 million in the port of Oakland.
No further information was released, with Evergreen citing confidentiality.
The disclosure of the investment coincided with Evergreen acquiring a 20% stake in Euromax’s terminal in the Dutch port of Rotterdam on 17 August.
Drewry Maritime Financial Research analyst Aditi Niranjan told Container News that many mainline operators have acquired terminal assets to increase the diversification of their business with the aid of the huge cash reserves they accumulated during the Covid-19-fuelled boom.
She said, “Along with diversification, these terminal assets will help increase the resilience of their overall business model.”
Besides Evergreen, Hapag-Lloyd has gone down the same path, acquiring a 40% stake in J M Baxi Ports & Logistics’ terminals in India and taking over SM SAAM’s ports and logistics business. Similarly, CMA CGM acquired the GCT Bayonne and GCT New York terminals, upping its presence in the US with seven terminals there.
Xeneta’s chief analyst Peter Sand told Container News that while liner operators have leverage with owning terminals, it can be tricky if the terminals serve external operators as well.
“It’s quite a competitive environment within the terminal business. If non-alliance operators believe they are getting bad treatment, they’ll surely discontinue relations,” noted Sand.
Source: Container News