MSC TO TAKE OVER WILSON SONS IN $768M DEAL
Swiss-based liner giant Mediterranean Shipping Co (MSC) has struck a deal via its subsidiary Shipping Agencies Services (SAS) to acquire a majority stake in Brazilian port and maritime logistics operator Wilson Sons. London-listed Ocean Wilsons Holdings said in a filing Monday it is selling its 56.47% interest in Wilson Sons to Gianluigi Aponte’s MSC for R4.352bn ($768m). Rumours of Wilson Sons’ sale to MSC have circulated for over a year as the world’s largest boxline seeks to expand its footprint in Brazil following its acquisition of regional container shipping operator Log-In Logistica in late 2021. Wilson Sons operates the Tecon Rio Grande container terminal in Rio Grande, Rio Grande do Sul, and the Tecon Salvador container terminal in Salvador, Bahia. The company, whose assets were worth about $1.126bn as of June, also operates one of the largest tugboat fleets in Latin America.
FLORIDA PORT GETS $9.5M IN MILTON STORM FUNDING
Florida’s SeaPort Manatee will receive $9.5 million in state emergency funding to aid recovery from Hurricane Milton. The funding comes as fuel, food and other goods begin to move through the maritime hub near Tampa Bay. The port serving southwest and central Florida suffered an estimated $200 million in damage when Milton made landfall Oct. 9. Florida Gov. Ron DeSantis announced the funding Monday at the port. The emergency funding is slated to include $5.5 million for emergency berth repairs and dredging in state waters, $3.5 million for immediate security needs and access control, and $500,000 to support planning activities for fortifying port infrastructure. The port will also receive staff support from multiple state agencies, DeSantis said, as well as Florida National Guard assistance with perimeter security. President Joe Biden on a visit to survey the storm damage Sunday was to announce $612 million for six Department of Energy projects to improve the resiliency of the state’s electric grid in areas affected by the storm.
ROARING VOLUME DRIVES RECORD FOR PORT OF LOS ANGELES
Record volume of 954,706 TEUs in September, up 27% y/y, helped drive all-time high volume of 2,854,904 million TEUs in the third quarter, according to data released today by the Port of Los Angeles. Imports totaled 497,803 TEUs in September, ahead 26% as shippers got an earlier-than-usual start bringing in end-of-year holiday merchandise. A front-loaded peak season came as retailers sought to avoid a host of issues threatening to snarl the global supply chain, from congestion in Asia ports to attacks on shipping in the Red Sea to a brief strike by union longshore workers at East and Gulf Coast ports. Port Executive Director Gene Seroka in a video call with reporters said that since the pandemic holiday retail sales have gotten a boost as consumers seek a sense of normalcy. The port has benefitted from the five-year West Coast union contract negotiated in 2023 between the Pacific Maritime Association and the International Longshoremen’s and Warehouse Association.
BRAZIL MOVES AHEAD WITH PRIVATIZED CONTAINER TERMINAL AT PORT OF SANTOS
Brazil is moving ahead with the long-delayed development of a new container terminal at the Port of Santos. Early this week, the Ministry of Ports and Airports (MPor) directed the state-owned logistics company Infra SA to draw up a concession model for the STS10 terminal. The Brazilian government has been trying to implement the project since 2019, during the administration of Jair Bolsonaro. With a growing container business at the Port of Santos, the new terminal would add much-needed capacity. However, after the current government of President Lula da Silva took office in 2023, it scrapped any plans to privatize the administrator of the Port of Santos. The new directive by MPor now wants this earlier model revised, with the government readying for its auction in 2025. However, the development of STS10 has not been without controversy. Part of the area where the STS10 terminal will be located, in the Saboo region, is occupied by a multipurpose terminal operated by Ecoporto. The concession contract expires by the end of the year, and if the contract is renewed, some shipping companies argue that the space designated for container operations will shrink. The STS10 auction signals a change in the Brazilian government’s stance on port privatization. Last month, CMA CGM bought a 48 percent stake in Santos Brasil, a leading terminal operator in Brazil. It controls Port of Santos’ largest container terminal, Tecon Santos.
