Tue | Dec 5, 2023

CMA CGM expands operations at two key USA container terminals

Published:Tuesday | August 29, 2023 | 12:07 AM
CMA CGM says its investments in the terminals will boost their capacity by up to 80 per cent.
CMA CGM says its investments in the terminals will boost their capacity by up to 80 per cent.

French Shipping giant CMA-CGM will take control of port management and operations at the prominent New Jersey and Staten Island container terminals. This follows an agreement struck by the Port Authority of New York and New Jersey to amend the leases held by Global Container Terminals Inc (GCT) for the terminals. Mike Schuler, reporting for the gCaptain website, notes that this significant development will facilitate CMA CGM playing a leading role in bolstering operational capacity and enhancing the region’s shipping infrastructure. The amendment involves various changes, including lease terms, financial arrangements, and commitments towards sustainability and local business support.

gCaptain, a maritime news website, disclosed that CMA CGM is set to take over the operations of the two crucial terminals: the Port Jersey-Port Authority Marine Terminal in Bayonne, NJ, and the Howland Hook Marine Terminal on Staten Island, known as GCT Bayonne and GCT New York, respectively. These terminals, collectively known for their current combined capacity of two million TEUs per year, will enable CMA CGM to significantly expand its operational capabilities in the United States.

Schuler noted further that CMA CGM said it would invest substantially in these terminals to increase their capacity by up to 80 per cent. This expansion will be facilitated by the amended lease that outlines increased rent payments based on container throughput, with a minimum annual guarantee. CMA CGM will also share revenue from excess container storage and take on the responsibility of maintaining and rebuilding wharf and berth structures to enhance operational efficiency.


The gCaptain website reported that the New York and New Jersey Port Authority’s chairman, Kevin O’Toole, expressed enthusiasm about this agreement, highlighting its potential to generate more employment opportunities and contribute to the economic growth of the region. The partnership with CMA CGM is seen as a pivotal step towards harnessing the full potential of these terminals.


CMA CGM’s involvement extends beyond operational improvements; the shipping giant has committed to the Port Authority’s ambitious goal of achieving net-zero greenhouse gas emissions by 2050. This commitment includes the adoption of zero-emissions material handling equipment, support for renewable energy initiatives, and goals related to minority-owned, women-owned, and service-disabled, veteran-owned businesses. The engagement of locally owned businesses will also be maximised.


The Port Authority of New York and New Jersey and CMA CGM have a long-standing relationship. The Port Authority has previously welcomed CMA CGM’s massive container ships, such as the CMA CGM Brazil, to its terminals. The Port Authority’s efforts, including raising the Bayonne Bridge’s roadway to accommodate larger container ships, demonstrate its commitment to facilitating efficient and reliable cargo movement.


Upon the addition of these two terminals, CMA CGM’s terminal portfolio in the United States will expand to seven. Globally, CMA CGM’s influence extends to 52 port terminals across 28 countries through its Terminal Link joint venture and CMA Terminals.

CMA-CGM operates the Kingston Freeport Terminal Limited through its subsidiary Terminal Link on a 35-year concession from the Port Authority of Jamaica.