Canadian investors acquire largest terminal operator in North America
Canada’s largest private pension fund investment manager acquires North America’s largest marine terminal operator in private transaction. The Canada Pension Plan Investment Board, which has been a minority investor in Ports America since 2014, said the transaction would ensure business continuity while underscoring its confidence in the transaction’s solid business outlook.
The Canadian investment manager, which manages more than $ 400 billion for 20 contributors and beneficiaries of the Canada Pension Plan, holds a large portfolio of government and equity securities, real estate, infrastructure and income securities fixed. They buy the remaining investments in Ports America from California-based investment manager Oaktree Capital Management. Oaktree had been an investor in Ports America for 12 years. The transaction is expected to be finalized in the fourth quarter of 2021.
“Ports America represents the opportunity to continue investing in a high quality operator that plays an important role in global trade, making the company a good fit for our long-term infrastructure investment strategy,” said said Scott Lawrence, Managing Director, Head of Infrastructure, RPC Investments. “Terminal operators play a critical role as freight demand and transportation needs continue to grow in response to rapid and dynamic changes in the way individuals and businesses buy and sell products. “
Founded in 1921, Ports America is today the largest terminal operator in North America, with diverse operations across the country, including 70 locations in 33 ports on each of the three coasts of the United States. The company handles 13.4 million twenty-foot equivalent units (TEUs) annually, including 10 million tonnes of general cargo, 2.5 million vehicles and 1.7 million cruise ship passengers.
“At Ports America, our commitment and ability to provide our customers with excellent, safe service and long-term strategic value influences everything we do,” said Mark Montgomery, CEO of Ports America. Commenting on the acquisition by CPP, he said, “We share a long-term vision for Ports America and are excited to expand our capabilities and service offerings to position the company for another century of innovation, leadership and of success.
Ports America’s current operations encompass container, RoRo, breakbulk, military and cruise ship operations. Recently, the company expanded its operations to the port of Baltimore, Maryland. Ports America Chesapeake is investing more than $ 110 million in marine terminal upgrades and will invest an additional $ 56 million in yard equipment to support the continued growth of the Port of Baltimore and Seagirt’s marine terminal. Improvements to the terminal’s infrastructure include four new container cranes and the upgrade of a second 50-foot berth, allowing Seagirt to simultaneously manage two 14,000 TEU vessels. In addition to technological advances in the Terminal Operating System (TOS), improved weigh-in-motion weighbridges and advanced visibility tools, Ports America Chesapeake will also invest in new container handling equipment, including 15 hybrid gantry cranes. electric on rubber tires. .