- A proposed partnership between CMA CGM and Eurogate to develop Hamburg’s Westerweiterung terminal appears to have fallen through.
- Hamburg City officials encouraged Eurogate to find a shipping line partner for the €1 billion project.
- CMA CGM’s withdrawal may allow MSC, Hapag-Lloyd, or another carrier to join the expansion.
A potential collaboration between CMA CGM and Eurogate for Hamburg’s Westerweiterung terminal project has reportedly collapsed. The €1 billion expansion aimed to boost port capacity, with Hamburg officials pushing Eurogate to seek a partner. CMA CGM’s exit could create an opportunity for MSC or other carriers to step in, reports Loadstar.
Deal Breakdown: CMA CGM and Eurogate
CMA CGM and German port operator Eurogate were in talks to co-develop the Westerweiterung terminal at Hamburg’s Burchardkai facility, a 24-ha expansion with two new berths and a two million teu annual capacity.
However, according to liner analyst Alphaliner, the parties failed to reach an agreement.
Hamburg’s Push for a Partner
Hamburg City officials urged Eurogate to find a shipping line partner due to concerns over the privately-owned operator’s financial capability to handle the €1 billion project independently.
This recommendation was similar to the city’s successful collaboration between MSC and HHLA, with the latter previously being majority-owned by Hamburg.
Renewed Port Expansion Efforts
Planning permission for the Westerweiterung project was granted in 2016, but significant funding is required to reclaim land, build berths, and enhance the port’s container handling capabilities.
Following the recent HHLA-MSC deal, Hamburg appears eager to rejuvenate its port operations. MSC’s agreement with HHLA includes co-funding terminal upgrades, suggesting that MSC or other carriers like Hapag-Lloyd may step into the Westerweiterung project following CMA CGM’s withdrawal.
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Source: Loadstar
