Wednesday, April 3, 2013

Container Shipping Group Sells Slice Of Freight Terminal Handling Interests

Capital Will Fund More Growth for TIL
Shipping News Feature

SWITZERLAND – WORLDWIDE – The world’s second largest container shipping group, Geneva - based Mediterranean Shipping Company (MSC) has reached agreement to sell to investment fund, Global Infrastructure Partners (GIP) and a group of its LP Co-Investors, a 35% share in Terminal Investment Limited (TIL), which funds, develops and manages container freight terminals around the world. Initial sale price is US$1.929 billion, which includes certain payments contingent on TIL’s future performance with settlement expected to take place in the middle of the year subject to the usual approvals. Diego Aponte, Vice President of MSC, said:

“We’re extremely pleased to have joined forces with GIP, one of the largest and most experienced infrastructure funds. Through this partnership we are reinforcing our terminal division, which will enable us to capitalise on future opportunities and growth. This will complement MSC’s strategy to maintain a leading position in the industry.”

TIL is in the process of acquiring, controlling/joint-controlling interests in 30 container terminals globally, serving most of the world’s major trade routes and located in North and South America, Europe, Africa, the Middle East and Asia. TIL has grown rapidly over the last decade and is now the world’s sixth largest container terminal operator and the agreement with GIP presumably will inject sufficient capital for continued development.

Both partners say that the new strategic cooperation between MSC and GIP will provide a strong foundation to support the next phase of TIL’s growth, including further acquisitions and investments. GIP will play an active role with Alistair Baillie joining TIL as President. Adebayo Ogunlesi, Chairman and Managing Partner of GIP commented:

“We are delighted to enter into this exciting new partnership with MSC. This is in line with our strategy of developing best-in-class joint ventures with industry leaders. We expect to work closely with MSC in growing and improving this high quality portfolio of container terminal assets.”