The Chronicle Herald
Tuesday, 7 May 2019
PSA International confirmed on Monday the Singapore company is acquiring the Halterm Container Terminal in south end Halifax, from Australia’s Macquarie Infrastructure Partners for an undisclosed amount. – Ryan Taplin
Officials with PSA International confirmed on Monday the Singapore company is acquiring the Halterm Container Terminal in south end Halifax, from Australia’s Macquarie Infrastructure Partners for an undisclosed amount.
According to a report by U.S.-based Journal of Commerce, the deal also includes PSA taking over multipurpose terminal Penn Terminals in Pennsylvania from the same Macquarie Infrastructure Partners fund.
A spokesman for the Halifax Port Authority on Monday declined to confirm or deny a deal had been reached, as did a Macquarie representative.
An official with knowledge of the deal, however, did confirm that PSA was the winning bidder for the terminal. Rumours of PSA’s Halterm deal were reported a couple of weeks ago, initally by business website The Macdonald Notebook, but only acknowledged on Monday.
SA reportedly beat out a joint bid for the terminal by CN Rail and shipping company CMA-CGM, another by Montreal-based Logistec, and others, according to the Journal of Commerce report.
PSA is reportedly seeking Canadian regulatory approval for the Halterm deal and Penn Terminals acquisition from U.S. authorities.
“Container growth at Halifax stalled in 2018, but the prospect for stronger growth remains, considering volume through the Nova Scotia gateway jumped 50 per cent over the last five years, largely thanks to attracting new Asia services,” the Journal of Commerce reported.
Halifax is currently spending millions of dollars on a two-step expansion project aimed at helping it to service the gigantic container ships expected to start calling on Halifax next year.
The temporary expansion of the south end terminal will significantly increase the berth <QL>length, thus allowing Halterm to simultaneously service two big ships, with a capacity of 10,000 20-foot equivalent units or more, <FZ,1,0,7>at once.
The second stage of the plan has not been approved yet but it would, in theory, provide a long-term solution to number of mega vessels carrying huge volumes of cargo.
It had long been rumoured that CN Rail and a shipping partner were the leading bidders to acquire the Halifax terminal but PSA moved in, in the nick of time, with the winning bid.
According to the company website, PSA was formerly known as the Port of Singapore Authority, a regulatory body involved in developing, operating and promoting the Port of Singapore’s terminals.
PSA’s regulatory function was taken away in 1996 and handed over to a Maritime and Port Authority of Singapore. PSA was incorporated in 1997 to manage and operate the former authority’s terminals and related businesses.
In December 2003, PSA International became the investment holding company for PSA’s businesses in Singapore and around the globe, according to the website.
Now, PSA International is wholly owned by Temasek Holdings, which has only one shareholder — the Singapore government.
As an investment company with holdings around the globe, Temasek management describes the corporate goal as delivering sustainable value over the long term — owning and managing assets based on commercial principles.
In turn, PSA’s operating businesses are organized into five business regions: Southeast Asia, Middle East South Asia, Northeast Asia, Europe and Mediterranean, Americas — each headed by a regional chief executive officer responsible for its business performance.
PSA boasts that it is a world leading ports and terminals group.