POLB Harbor Commissioners approve TTI sale

The Port of Long Beach Harbor Commissioners approved the sale of Hanjin Shipping’s 54 percent stake in Total Terminals International to MSC and its sister company Terminal Investment Ltd. Wednesday night by a 3-to-1 vote.

   The Port of Long Beach Harbor Commissioners approved the sale of Hanjin Shipping’s 54 percent stake in Total Terminals International (TTI) to Mediterranean Shipping Company (MSC) and its sister company Terminal Investment Ltd. (TIL).
   The board approved the sale Wednesday night by a 3-to-1 vote.
   MSC and TIL already held the additional 46 percent stake in TTI, which has long-term leases and operating concessions at Pier T in Long Beach and Terminal 46 in Seattle.
   Pier T terminal was the largest terminal at the port, accounting for about 27 percent of the port’s annual container volumes, Commission President Lori Ann Guzman said. Pier T is located at the port’s outer harbor, with 55 feet of water draft, no air draft constraints and has excellent on-dock rail facilities, Guzman said.
   The agreement gives MSC sole control of the lease and requires installation of two new cranes capable of handling containerships with capacities of 20,000 TEUs within three years.
   Rich Dines, who cast the only dissenting vote, said although the agreement provides financial stability and certainty for stakeholders, he is concerned the port is not getting full value for the terminal. “One can argue that our Pier T terminal is the most valuable container terminal in North America, and in my opinion, the agreement represents a real bargain for the tenant,” Dines said.
   In addition, Dines said that despite his dissenting vote, he supports the tenant in “pursuing and achieving the full potential of this premier terminal.”
   Guzman said that she was comfortable with the agreement. She noted that MSC and TIL have been investors in TTI for four years. She noted that a South Korean bankruptcy court granted approval of the sale by Hanjin earlier this week, contingent on the approval by U.S. institutions, including both the Port of Long Beach and the U.S. Bankruptcy Court in Newark, N.J.