GIP sells stake in Argentine container terminal firm

The global infrastructure fund has agreed to sell its 50% stake in ITL to a terminal operator that GIP also has a stake in.

New York-based fund manager Global Infrastructure Partners (GIP) has sold its 50 percent stake in an Argentine container terminal and logistics firm to a terminal operator which it also has a stake in.

Under the agreement, Terminal Investment Limited (TIL) will acquire a 50 percent interest in International Trade Logistics (ITL), which includes Exolgan, the largest container terminal in Buenos Aires, plus its associated logistics and warehousing activities.

TIL is a terminal operator controlled by shipping line MSC Mediterranean Shipping Company (MSC).

The companies did not disclose the price paid for the transaction.

“We see the acquisition of ITL from GIP as a logical extension of our partnership with them in our global terminal business. Furthermore, the investment in Exolgan aligns with our strategy at MSC to acquire equity in key terminals so as to ensure the efficiency and capacity required for our global shipping network,” said Diego Aponte, vice president of MSC and chairman of TIL.

GIP and a group of co-investors acquired 35 percent of TIL from MSC in May last year, which the infrastructure fund said is “an example of GIP’s core strategy of developing best-in-class joint ventures with industry leaders”.

TIL was founded in 2000 to secure berths and terminal capacity for the ships and its parent company, MSC. It is now the world’s sixth-largest container terminal operator with 30 terminals operating or under construction in major origin, destination and trans-shipment trade hubs and gateways worldwide, according to GIP’s website.

“We are very happy to have extended our relationship with the MSC Group through this sale of our interest in ITL to TIL. We are confident that Exolgan… will fit well within the TIL terminal portfolio and will, in the future, provide excellent service to MSC and its other customers,” GIP managing partner Adebayo Ogunlesi said.

In 2008, GIP partnered with PSA International to acquire the 50 percent interest in ITL. PSA International, formerly known as Port of Singapore Authority, is the world’s largest operator of container terminals.