ONE PURCHASES CONTROLLING INTEREST IN THREE CALIFORNIA TERMINALS

Ocean Network Express (ONE) is acquiring a controlling interest in three

container terminals in California as the five-year-old company moves forward

with its investment strategies. Established in 2017 by three Japanese shipping

companies, ONE said the acquisition of the interests in the terminals from its

Japanese parent companies is part of its growth strategy and will safeguard

access to terminal capacity in key and strategic gateways.

“The recent disruptions to the supply chain due to Covid-19 have

highlighted the importance container terminals play in keeping global trade

flowing,” said ONE. “The newly acquired container terminals will safeguard ONE’s

access to terminal capacity in key and strategic gateways, support its growth

ambitions and enhance its service offerings to customers.”

Under the terms of the definitive agreements reached between ONE and its

parent companies, Mitsui O.S.K. Lines (MOL) and Nippon Yusen Kabushiki Kaisha

(NYK), ONE will acquire a 51 percent stake in both TraPac and Yusen Terminals.

In making the acquisitions ONE joins larger competitors which have also been

expanding their ownership of terminals. In January, CMA CGM completed its

acquisition of the Fenix Marine Services container terminal at the Port of Los

Angeles, one of the largest facilities of its kind in the United States.

The acquisition by ONE is part of the integration of the container shipping

businesses from the parent companies into ONE. The closing of these transactions

is subject to the approval of the relevant authorities.

TraPac was established in 1985 by Mitsui O.S.K. Lines to operate a

container terminal in Los Angeles. Today it also has a terminal in Oakland,

California and it provides vessel stevedore services. Yusen Terminals, which has

been a Port of Los Angeles tenant since 1991, is currently jointly owned by NYK

and Macquarie Infrastructure Partners.

Jeremy Nixon, CEO of ONE, earlier this year mapped out the strategy for the

company noting that they were moving beyond their formative years into a phase

of making independent investment decisions. He outlined an aggressive growth

plan in March 2022 saying they would invest $20 billion by 2030 with up to half

going for investments in terminals.