MSC set to be largest terminal operator following $22.8 billion deal

Hutchison Ports, which is currently owned 80% CK Hutchison and 20% PSA International, operates a portfolio of 43 maritime container terminals outside of China and Hong Kong stretching from Australia to the United Arab Emirates. The combined capacity of these terminals was over 73 million teu at the end of 2023, with total throughput of almost 47 million teu.

In contrast, MSC’s portfolio, comprising its majority (70%) stake in Terminal Investment Limited (TiL), 100% shareholding in Africa Global Logistics, a portfolio of primarily Italian terminals held via wholly-owned Marinvest and a smattering of other directly-held stakes – generated total throughput of over 70 mteu in 2023.

However, since not all terminals in the respective portfolios are wholly-owned, Drewry uses equity-adjusted throughput as a metric, which adjusts throughout for each terminal pro-rata to the ownership stake held.

The proposed deal will see MSC leapfrog other leading GTOs to secure the top spot in the global terminal operator rankings which Drewry produces each year.

Overall, Drewry’s assessment is that the Hutchison portfolio is complementary to the existing terminal assets under the control of MSC, with the operations in the high growth Southeast Asia and Mexican markets seen to be particularly advantageous.

At a reported value of $22.8 billion, this is by far the largest deal in the global container terminal sector, dwarfing other major takeovers that have taken place in recent years.

…said Drewry.

The deal appears to be a major win for MSC, which secures additional capacity in several key markets. Drewry however expects the regulatory processes to extend for at least a year, and foresees competition authorities taking a particular interest in the Northwest Europe, Spain and Panama markets.