For $1 billion, Hapag-Lloyd acquires SAAM’s terminal and logistics operations
Hapag-Lloyd, a major German shipping company, has committed $1 billion to buying the port and logistics operations of Chilean company SM SAAM as part of its expansion into the burgeoning Americas market. The port business, logistics services, and real estate assets of SAAM Ports and SAAM Logistics will now be completely under Hapag-control. Lloyd’s The deal excludes the tugboat services and airport logistics businesses of SM SAAM.
The deal will increase Hapag-foothold Lloyd’s in Latin America by giving it a share in 10 terminals across six nations. Hapag-newest Lloyd’s division will function independently.
“Latin America is one of our strongest regions, and investing in terminal infrastructure is a crucial part of our strategic agenda. The terminal operations and allied logistics services of SM SAAM will enable us to grow our business while creating a strong and appealing terminal portfolio,” according to Hapag-Lloyd CEO Rolf Habben Jansen.
A terminal operator, logistics provider, and towage service provider with operations throughout several American nations is SM SAAM. The company’s terminal business consists of 10 terminals in six countries throughout North, Central, and South America, with a combined container throughput of about 3.5 million TEU in 2021 and 4,000 workers. In addition to the terminal company, complementary logistics services are provided at five locations around Chile by over 300 people.
SM SAAM, which anticipates a $400 million net profit from the transaction, claimed that the acquisition is a reward for its six decades of industry experience. The money will enable it to take advantage of chances for the majority of its profitable tugboat, port, and air freight logistics operations, which still exist.
SAAM General Manager Macario Valdés remarked, “This deal will allow us to continue marketing the tugboat industry, in which SAAM is already the third player internationally thanks to the strategy we have implemented since 2019.” The fifth-largest ocean carrier in the world, Hapag-Lloyd, has steadily increased its presence in the terminal industry in recent years.
The company has bought an interest in Wilhelmshaven’s JadeWeserPort and is investing in the development of Terminal 2 at the Egyptian port of Damietta. It is also in the process of acquiring a minority stake in the Italian Spinelli Group. Additionally, Hapag-Lloyd owns an interest in the Hamburg Altenwerder terminal and the Tangier, Morocco, port’s Terminal TC3.
The business, like all major container operators, had a strong first half of the year, doubling sales year over year to $16.5 billion. Significantly higher freight charges and a stronger US dollar were blamed for the enormous rise.
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