Fenix Marine Services is providing container handling services to shipping lines including stevedoring, intermodal and truck services, storage and maintenance.
About Fenix Marine Services
Fenix Marine Services has an annual capacity of TEU 2.8mn, making it one of the largest terminals in the Twin Ports of Los Angeles and Long Beach, which together form the largest port in North America. Fenix Marine Services was originally owned by Neptune Orient Lines (“NOL”) / American President Lines (“APL”) and was historically operated as a cost center. In 2016, CMA acquired NOL / APL and owned Fenix Marine Services until its sale to EQT end of 2017.
Market trends and drivers
Fenix Marine Services is well positioned to benefit from global and U.S. West Coast industry factors, including market consolidation and global trade flow. It is one of the top four terminals in the Port of Los Angeles and Long Beach and one of the top ports in the world. Fenix Marine Services also benefits from a long-term contract with CMA, the third largest shipping line in the world. The port has a well-positioned location on the outer harbor and the infrastructure (e.g. deep berths and on-dock rail) to support the industry shift towards increasingly large ships.
FMS has successfully executed on nearly all of the value creation initiatives initially set out as part of the acquisition. The value creation plan has involved revenue enhancement through a long-term contract with CMA and operational efficiencies from moving away from a cost-center approach and mentality. Having been operated as a cost center historically, there was significant opportunity to improve operating efficiency at the terminal through process improvements and capital investment in container handling equipment and IT systems.