The top port analyst at London-based consultancy Drewry said Monday a deal announced last week in which the liner carrier Mediterranean Shipping Co. will sell a 35-percent stake in its terminals business
to the New York-based private equity group Global Infrastructure Partners (GIP) makes sense for both sides.
The deal, worth $1.9 billion, gives GIP a sizable share in MSC’s Terminal Investment Ltd. (TIL) business.
“I think the deal makes good sense for both parties,” Neil Davidson, Drewry's senior advisor, ports, told American Shipper
. “For TIL it allows them to generate cash from the value of the portfolio whilst still retaining majority control, whilst for GIP it provides a step change in their level of activity in the port sector, and allies them with a fast growing terminal operator and highly successful shipping line."
Alistair Baillie, currently executive chairman of International Port Holdings, a wholly-owned ports investment affiliate of GIP, will be joining TIL as president, a move also commended by Davidson.
He added it’s “too early to say what effect the deal will have on TIL's operations, but Alistair Baillie is a highly experienced operator in the global terminal business from his days developing P&O Ports, and so his role as president of TIL will be a real asset.” - Eric Johnson