News / Opening for MSC as CMA CGM pulls out of Hamburg terminal project?

Photo: © Thomas Lukassek | Dreamstime.com

A potential deal that would have seen CMA CGM and German port operator Eurogate jointly develop a new terminal in Hamburg appears to have collapsed, according to liner analyst Alphaliner.

During the summer, it emerged that Hamburg City officials were encouraging terminal operator Eurogate to seek a partner to help it develop the Westerweiterung project, a 24 ha western expansion of its Burchardkai facility in the port.

“Industry sources now tell Alphaliner that Eurogate and CMA CGM have not been able to agree on a deal,” the analyst wrote today.

According to early reports in local newspaper DVZ, municipal representatives were concerned that the privately owned port operator did not have the financial resources to develop the project independently and urged Eurogate to find a shipping line partner, in a similar fashion to the deal it was pursuing at the time with MSC and HHLA – which at that point was 67%-owned by the city.

Planning permission for the project was granted in 2016 to reclaim land and build two berths, 450 metres and 600 metres in length, and add around two million teu of annual capacity to the port. Construction costs were expected to run to well over €1bn.

However, Alphaliner also noted a renewed appetite in Hamburg to re-energise its port operations after successfully luring MSC to invest in HHLA, whose automation retrofit project at its Burchardkai terminal is continuing to require huge sums of investment.

CMA CGM’s departure from the project could pave the way for another carrier to participate.

Alphaliner wrote: “After sealing the HHLA-MSC deal, which included a provision under which the carrier will co-fund substantial upgrades at the operator’s container terminals, the city state of Hamburg is still eager to develop the Westerweiterung, which already has full planning permission.

“CMA CGM’s withdrawal, if confirmed, could open a window for the fast-expanding MSC, locally based Hapag-Lloyd, or another carrier to become a partner in Hamburg’s next port expansion project.”