French container transportation and shipping company CMA CGM, along with PSA Singapore Terminals (PSA) will establish a joint venture company, CMA CGM-PSA Lion Terminal (CPLT).
Once formed, CPLT will operate and use four mega container berths at Pasir Panjang Terminal Phases 3 and 4 in Singapore.
Scheduled to begin operations from the second half of this year, CPLT will provide long-term terminal services to the fleets of CMA CGM and its shipping line affiliates.
CMA CGM Group vice-chairman Rodolphe Saadé said: "It is a significant step, demonstrating the ongoing importance of Singapore to our strategy, and delivering on our commitment to making Singapore the Asian hub for the Group."
CPLT will permit CMA CGM and its shipping line affiliates to use port infrastructure and technologies at PSA’s Pasir Panjang Terminal (PPT), the expansion of which will increase PSA’s total port capacity by nearly 50% to 50 million twenty-foot equivalent units (TEUs).
PSA International group CEO Tan Chong Meng said: "CMA CGM-PSA Lion Terminal will cater to the volume growth of the CMA CGM Group in Asia.
"PSA looks forward to working alongside CMA CGM to ensure that its hub operations flourish, and enhance Singapore’s premier status as the world’s busiest transhipment hub."
Presently, CMA CGM has 536 vessels, which travel to more than 420 ports located across the world. Last year, the company carried 18 million TEU.