GIP now 35% owner in terminal business

Global Infrastructure Partners has bought interest in Terminal Investment Ltd. The fund manager paid $1.93bn.

Fund manager Global Infrastructure Partners (GIP) has bought 35 percent of Terminal Investment Limited (TIL) from Mediterranean Shipping Company (MSC) for $1.93 billion, according to a press release.

GIP will also pay money based on future performance, the press relate noted. The transaction is set to close in the middle of the year.

Founded in 2000, TIL is a container terminal operator active in North and South America, Europe, Africa, the Middle East and Asia, serving as the terminal division of Geneva-based MSC, the second largest shipping line in the world.

TIL called the transaction a “strategic partnership between MSC and GIP” that will spur acquisition and growth.

Alistair Baillie will join Terminal Investment as president, the release said. Baillie is executive chairman of International Port Holdings, a wholly owned seaport investment affiliate of GIP. Prior to joining GIP, he worked for Oriental Steam Navigation Company.

“This [transaction] is in line with our [joint venture] strategy,” said Adebayo ‘Bayo’ Ogunlesi, chairman and managing partner of GIP.

Ogunlesi touted the “joint partnership” business model in a live interview at the Infrastructure Investor Berlin Summit 2013 in March, citing how GIP partnered to develop Ruby Pipeline as well as Chesapeake Midstream Partners, now Access Midstream Partners.

In 2010, GIP bought 26.6 percent of Port of Brisbane, the third largest diversified port in Australia, encompassing Queensland and New South Wales.The fund manager is also full owner of Great Yarmouth Port, in the UK.

Located in London and New York, Global Infrastructure Partners has $15 billion under management.