Fenix Marine Service is a container terminal with a long-term concession (through 2043) located in the Port of Los Angeles, providing container handling services to shipping lines including stevedoring, intermodal and truck services, storage and maintenance.
Fenix Marine Service has an annual capacity of TEU 2.4mn, making it one of the largest terminals in the Twin Ports of Los Angeles and Long Beach, which together form the largest port in North America. Fenix Marine Service was originally owned by Neptune Orient Lines (“NOL”) / American President Lines (“APL”) and was historically operated as a cost center. In 2016, CMA acquired NOL / APL to strengthen its position on the Transpacific trade route.
Fenix Marine Service is well positioned to benefit from global and U.S. West Coast industry factors, including market consolidation and global trade flow. It is one of the top three terminals in the Port of Los Angeles and Long Beach and one of the top ports in the world. Fenix Marine Service also benefits from a long-term contract with CMA, the third largest shipping line in the world. The port has a well-positioned location on the outer harbor and the infrastructure (e.g. deep berths and on-dock rail) to support the industry shift towards increasingly large ships.
The value creation potential lies in revenue enhancement through a long-term contract with CMA, operational efficiencies from moving away from a cost-center approach and mentality, and partnership with an experienced management team. Having been operated as a non-core asset historically, there is significant opportunity to improve operating efficiency at the terminal through capex investment and process improvements, particularly as volumes scale up. There is also an opportunity for future expansion of yard and berth under a future buyer.