CMA CGM, the leading French shipping company and a major global shipping player, will be able to assume operations at the Port of New York and New Jersey after a regulatory hurdle was overcome last week.
The Port Authority of New York and New Jersey approved a lease amendment that allows CMA CGM to operate two major container terminals that are of strategic importance to overall port operations. Both the Port Jersey-Port Authority Marine Terminal, located in Bayonne, NJ, and the Howland Hook Marine Terminal, located on Staten Island in NYC, will be operated under the control of CMA CGM.
In a statement, Port Authority of New York and New Jersey Executive Director Rick Cotton said:
“We welcome CMA CGM as a key partner in the operation of two of our marine terminals, and look forward to working closely with CMA CGM in the future vigorous development of our seaports.”
The moves are slated to greatly increase overall capacity at two of the port’s key terminals.
The two terminals that will be taken over by CMA CGM will likely benefit from a much-higher level of attention and investment. Back in December 2022, the French shipping giant first announced its intent to assume operations at the terminals and promised a greater investment into the terminals with an end goal of higher capacity. It will become the responsibility of CMA CGM to make necessary repairs for the wharfs and berths. There will likely be other cosmetic upgrades to the overall port facility, paid for my CMA CGM.
With current capacity of two million TEUs annually, CMA CGM hopes to grow capacity by as much as 80%.
That would be a game changer. The supply chain crunch of 2021 and early 2022 showed that the U.S. supply chain suffered due to high demand and delays at U.S. West Coast ports. With the focus now being on increasing U.S. East Coast port operations, a 80% increase in capacity at New York-New Jersey would be a massive upgrade for every shipper.
There will be a rent increase tired to annual benchmark goals and guarantees, and a revenue-share program between the port and CMA CGM.