CMA CGM Invests in 48% Stake in Brazilian Port Operator – Expanding Business in South America

CMA CGM has acquired a 48% stake in the Brazilian port operator, Santos Brasil, as part of its efforts to expand its operations in South America.

This move is a significant step in strengthening the company’s port business.

What is Santos Brasil?

Santos Brasil, the port operator that CMA CGM has invested in, manages three major terminals along the Brazilian coast, specializing in containers, liquid bulk, and finished vehicles.

The container terminal at the Port of Santos, South America’s largest port, stands out in particular.

With a current handling capacity of 2.5 million TEU, this terminal is set to expand its capacity to 3 million TEU in the near future.

CMA CGM’s Strategy and Future Plans

Through this investment, CMA CGM aims to increase its influence in terminal operations and has expressed interest in acquiring the remaining shares in the future.

The benefits of owning port terminals for shipping companies include greater control over operations, prioritizing their own vessels for docking, and enhancing automation.

This can significantly improve customer service, especially at congested ports.

Strengthening Business in South America

In 2017, CMA CGM strengthened its South American operations by acquiring Brazilian coastal shipping company Mercosul Line, which provides weekly services to 14 ports across the country.

Furthermore, its logistics subsidiary, CEVA Logistics, employs 7,500 people in Brazil and operates 53 warehouses covering 530,000 square meters across 36 locations.

These initiatives highlight CMA CGM’s consistent strategy to enhance its logistics network in South America.

Conclusion

CMA CGM’s investment in Santos Brasil is a key step towards boosting its presence in the South American market.

The planned expansion of the terminal and its impact on the broader port industry will be closely watched.