Orient Overseas Container Line (OOCL) has signed an agreement to divest 100% of Long Beach Container Terminal to a consortium led by Macquarie Infrastructure Partners (MIP) for $1.78bn.
LBCT LLC operates the Long Beach Container Terminal in the Port of Long Beach, California, US.
The deal is undertaken as per the terms of the National Security Agreement entered on 6 July by OOCL’s parent company OOIL, Faulkner Global Holdings and the US Department of Homeland Security and the US Department of Justice.
Pursuant to the terms of the deal, OOIL agreed to offload its ownership of the Long Beach Container Terminal business.
OOCL CEO Andy Tung said: “Over the past 30 years, we have developed Long Beach Container Terminal into the safest, most efficient and lowest-emission terminal in the US.
“We are confident of the future prospects of the terminal under the ownership of MIP and its co-investors, and we look forward to being a long-term strategic customer of Long Beach Container Terminal and the Port of Long Beach.”
Under the terms of the deal, OOCL will also sign a container stevedoring and terminal services agreement with LBCT for a period of 20 years.
MIP CEO Karl Kuchel said: “This transaction marks another key milestone in our relationship with OOIL and we greatly appreciate their significant long-term customer commitment to LBCT.
“We are also committed to completing the current expansion of LBCT by 2022, which will significantly increase the capacity of the terminal.”
The deal is subject to approvals from the relevant regulatory authorities and other customary conditions.