I've written to Senator Jim Molan AO DSC today about the Port of Darwin after President Trump's administration ordered the Chinese Communist Government to sell America's 2nd biggest container port.
I wrote to Jim because he's one of the few people in the Morrison Government (along with Andrew Hastie) who understands this issue.
It's a tragedy that our foreign policy is in Marise Payne's hands - and that our caretaker defence minister is the tragedy that is Christopher Pyne.
Orient Overseas (International) Limited (OOIL) said it had sold 100 percent of Long Beach Container Terminal (LBCT) for $1.78 billion to a consortium led by Macquarie Infrastructure Partners.
OOIL was required to sell the terminal, one of the largest and most automated in the country, pursuant to the National Security Agreement with the U.S. Department of Homeland Security and U.S. Department of Justice.
The federal government demanded the sale of the terminal after a review last year of the purchase of OOIL by COSCO Shipping Holdings by the Committee on Foreign Investment in the United States (CFIUS).
As part of the agreement with Macquarie, OOCL will continue to have its ships call at LBCT with a minimum volume commitment under a 20-year container stevedoring and terminal services agreement.
And here's OOIL's statement confirming the forced divestment.
Orient Overseas (International) Limited announces the sale of Long Beach Container Terminal to a consortium led by Macquarie Infrastructure Partners
- Sale of Long Beach Container Terminal to a consortium led by Macquarie Infrastructure Partners for US$1.78 billion
- Sale pursuant to the National Security Agreement with the U.S. Department of Homeland Security and U.S. Department of Justice
- Long-standing relationship between OOIL and Long Beach Container Terminal to continue through 20 year Container Stevedoring and Terminal Services Agreement
(Hong Kong, April 30, 2019) – Orient Overseas (International) Limited (“OOIL", HKEx: 316) and Macquarie Infrastructure Partners (“MIP") today announced that OOIL's wholly-owned subsidiaries, OOCL LLC and Long Beach Container Terminal, Inc., have entered into a Sale and Purchase Agreement to sell 100% of LBCT LLC to a consortium led by MIP, for US$1.78 billion. LBCT LLC operates the Long Beach Container Terminal (“LBCT") in the Port of Long Beach, California, United States.
The sale is undertaken pursuant to the National Security Agreement entered into by OOIL, Faulkner Global Holdings Limited, a subsidiary of COSCO SHIPPING Holdings Co., Ltd, and the U.S. Department of Homeland Security and the U.S. Department of Justice on July 6, 2018, under which OOIL committed to divest its ownership of the Long Beach Container Terminal business.
As part of the sale, Orient Overseas Container Line Limited (“OOCL"), a subsidiary of OOIL, will also enter into a Container Stevedoring and Terminal Services Agreement with LBCT LLC for a 20-year period, confirming its significant long-term commitment to LBCT.
Commenting on the sale, Andy Tung, Co-Chief Executive Officer of OOCL, said: “Over the past thirty years, we have developed Long Beach Container Terminal into the safest, most efficient and lowest-emission terminal in the United States. We are confident of the future prospects of the terminal under the ownership of MIP and its co-investors, and we look forward to being a long term strategic customer of Long Beach Container Terminal and the Port of Long Beach."
Karl Kuchel, Chief Executive Officer of MIP, commented that: “We are pleased to acquire LBCT, a premier terminal in the largest port complex in North America, which serves as a gateway for trans-Pacific trade. This transaction marks another key milestone in our relationship with OOIL and we greatly appreciate their significant long-term customer commitment to LBCT. We look forward to partnering with the Port of Long Beach and the LBCT management team to ensure that LBCT delivers high-quality service to OOCL and our other customers going forward. We are also committed to completing the current expansion of LBCT by 2022, which will significantly increase the capacity of the terminal."
The completion of the sale will be subject to approvals from the relevant regulatory authorities and other customary conditions.
J.P. Morgan is the financial adviser and Slaughter and May is the legal counsel to OOIL.
OOIL is a limited company incorporated in Bermuda and its shares are listed on the Main Board of the Hong Kong Stock Exchange. OOIL is principally engaged in the provision of container transport and logistic services. OOCL is one of the world's largest integrated international transportation, logistics and terminal companies, and is an industry leader in the use of information technology and e-commerce to manage the entire cargo transport process.
About Macquarie Infrastructure Partners
Macquarie Infrastructure Partners operates within the Macquarie Infrastructure and Real Assets (“MIRA") division of the Macquarie Group. MIRA is one of the world's leading alternative asset managers. For more than two decades, MIRA has partnered with investors, governments and communities to manage, develop and enhance assets relied on by more than 100 million people each day. As at December 31, 2018, MIRA managed $A185.9 billion in assets, including; 161 portfolio businesses, ~400 properties and 4.6 million hectares of farmland. For further information, please visit www.MIRAFunds.com
MIRA is a part of Macquarie Asset Management, the asset management arm of Macquarie Group, a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie employs 14,869 people in 27 countries.