By Andrew Macdonald
The first official comments about a deal being reached by Macquarie Infrastructure to sell its Halterm Container Terminal in Halifax Southend comes from Canadian National Railway.
Two weeks ago The Notebook relied on my sources to detail a deal to sell the 72-acre terminal had been reached, and through various sources I reported weeks ago that Singapore transportation giant, PSA International is buying the terminal.
This week, during a 63-minute conference call with its shareholders’, CN confirmed a deal is in place – making it the first Port of Halifax user to confirm such a deal is in place.
Neither the Halifax Port Authority, nor PSA, are talking about the deal.
CN’s CEO Jean-Jacques Ruest confirmed the deal during his conference call with investors.
“On the Port of Halifax, so the Port of Halifax (looks) like it will be changing into a new owner, a company we can’t share exactly who that is, but it’s a company that we know very well”, said Ruest.
“Assuming it’s those folks that eventually take over the terminal, they are an excellent world-class operator and more to come on that, but we are actually optimistic on how we over the next few years and hopefully if the transaction (does) proceed, how we can work with these people to make much better use of our East Coast port to serve the central part of the continent”, he added.
CN had an alternative bid to buy Halterm, and my sources have told me CN wanted a 30% equity stake in a partnership with French shipping behemoth, CMA-CGM.
While he stopped short of naming PSA International as the successful suitor for the terminal, built in 1969 by then political lord, Allan J. MacEachen, Ruest said: “It doesn’t necessarily mean that we have to be a financial partner. I mean there’s different scenarios, but what’s important here is, they have now selected who they want to sell the terminal to”.
“We know these people. We’re actually going to be having a discussion with them and at this point, I would leave it at that as to what our financial role will be”, he added.
“But one thing for sure is, we see opportunity to grow the rail business out of Halifax into the hinterland, which is really the point of what we call feeding the beast”.
Halterm Container Terminal in Southend Halifax. (Andrew Macdonald photo).
For its part, port operator PSA, which has 33,000 global employees and 50 container terminals and inland terminals, is remaining mum about the deal.
I reached out to PSA’s Singapore headquarters, and was met with dead silence, two weeks ago.
As for Hector Jacques, chair of the Port of Halifax, he is directing my media questions to Halterm’s current owner, Australian based Macquarie Infrastructure.
Macquarie has remained silent on the deal, since issuing a “no comment” to me two weeks ago, when I asked if PSA International is buying the terminal, adjacent Point Pleasant Park.
Macquarie paid circa $170 million in 2006 to buy the terminal with its 72 acres.
Other port observers tell The Notebook that PSA “is a strong operator.” PSA concentrates its shipping routes on Mediterranean port of calls, a key region for imports in the Port of Halifax.
Halifax Port, colour picture by Wiebe Schroeder.
The reason Macquarie is likely not commenting on the signed deal is because it is likely now part of due diligence studies that PSA International is undertaking.
PSA’s website says the transportation firm “is a leading global port group…around the world. With flagship operations in Singapore and Antwerp, PSA’s portfolio comprises a network of over 50 coastal, rail and inland terminals in 17 countries”.
PSA describes itself as ‘The World’s Port of Call’.
“PSA’s operating entities are organised 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,” its website states.
The winning bid from PSA also means another Halterm bidder, Montreal-headquartered Logistics, was unsuccessful.
