CMA CGM has obtained a 51% controlling stake in the Brazilian terminal operator
French shipping giant CMA CGM announced that it has completed the first phase of its acquisition of Brazilian multi-terminal operator Santos Brasil.
Next, after completing the independent valuation, CMA CGM will launch the second phase of the tender offer to acquire the remaining shares.
Santos Brasil currently operates five terminals and a total of eight assets within Brazil. Its Tecon Santos terminal is not only the largest container terminal in Brazil but also in the entire South American region. The terminal currently has an annual container handling capacity of 2.5 million TEUs and plans to expand it to 3 million TEUs in the future, capable of accommodating three 14,000-TEU giant vessels simultaneously. Cma CGM pointed out that the terminal handles approximately 40% of the total container transportation volume in Brazil and claimed that it is the most efficient terminal in the Port of Sao Paulo.
In recent years, South America, especially Brazil, has continuously attracted global major shipping enterprises to increase their investment. Cma CGM will invest over 2 billion US dollars in Brazil this time to expand its local business territory. MSC, Maersk and DP World, among others, have also successively announced new plans for expansion in Brazil.
This acquisition further consolidates CMA CGM's 20-year in-depth layout in Brazil and is in line with its global strategy of expanding its terminal and logistics business territory. Cma CGM stated that it will promote the development of Santos and other ports, incorporate the operation of Santos Brasil into the group system, and integrate its resources including CEVA Logistics.
At present, the Santos port continues to maintain a strong growth momentum. The latest data from the port authority shows that the volume of containers processed in March reached 460,000 TEUs, not only achieving a continuous increase for three months but also setting a new record high for the same period in history. In the first quarter of this year, the total throughput of this port increased by nearly 7% year-on-year, reaching a cumulative total of 1.3 million TEUs.
Meanwhile, the Brazilian federal government has also committed to increasing investment in the Santos Port complex, planning to invest 2.2 million US dollars in upgrading land and sea access routes, including new road construction and deepening of waterways.
Next, after completing the independent valuation, CMA CGM will launch the second phase of the tender offer to acquire the remaining shares.
Santos Brasil currently operates five terminals and a total of eight assets within Brazil. Its Tecon Santos terminal is not only the largest container terminal in Brazil but also in the entire South American region. The terminal currently has an annual container handling capacity of 2.5 million TEUs and plans to expand it to 3 million TEUs in the future, capable of accommodating three 14,000-TEU giant vessels simultaneously. Cma CGM pointed out that the terminal handles approximately 40% of the total container transportation volume in Brazil and claimed that it is the most efficient terminal in the Port of Sao Paulo.
In recent years, South America, especially Brazil, has continuously attracted global major shipping enterprises to increase their investment. Cma CGM will invest over 2 billion US dollars in Brazil this time to expand its local business territory. MSC, Maersk and DP World, among others, have also successively announced new plans for expansion in Brazil.
This acquisition further consolidates CMA CGM's 20-year in-depth layout in Brazil and is in line with its global strategy of expanding its terminal and logistics business territory. Cma CGM stated that it will promote the development of Santos and other ports, incorporate the operation of Santos Brasil into the group system, and integrate its resources including CEVA Logistics.
At present, the Santos port continues to maintain a strong growth momentum. The latest data from the port authority shows that the volume of containers processed in March reached 460,000 TEUs, not only achieving a continuous increase for three months but also setting a new record high for the same period in history. In the first quarter of this year, the total throughput of this port increased by nearly 7% year-on-year, reaching a cumulative total of 1.3 million TEUs.
Meanwhile, the Brazilian federal government has also committed to increasing investment in the Santos Port complex, planning to invest 2.2 million US dollars in upgrading land and sea access routes, including new road construction and deepening of waterways.
