The WSJ confirms that it is on sale second largest container terminal in the USA. The disinvestment is due to a series of requirements that the giant container line China COSCO CL must comply with in order to acquire the OOCL line with a concession in Hong Kong.
One of the most advanced container loading terminals in the Port of Long Beach is for sale. China’s Cosco Shipping Holdings Co. is to start a process that will change ownership of the terminal in the nation’s second largest port in a period of rapid growth in commercial volumes. Costas Paris and Joanne Chiu, of WSJ, report that experts believe that the site could cost more than $ 1 billion, and it is likely that many port operators in the world bid for the property. The sale is part of an agreement with the United States. regulators who gave Cosco the green light to buy the Hong Kong-based container transport line, Orient Overseas International Ltd. OOIL operates the Long Beach Container Terminal, but Cosco agreed earlier this year to place it in a trust administered by the United States and sell it within a year to dispel the national security problems. The sale comes in the United States. The container terminal market has been relatively static in recent years, as large operators have consolidated ownership in other countries.
Despite the fact that COSCO CL makes the divestment in this port terminal, its position within the containerized market gives it a supremely strong bargaining power when negotiating tariffs with ports. However, terminals that have the capacity to handle the extra giant ships that it deploys on this route also limit the service providers.