Goldman Sachs to buy stake in port operator
Investment firm Goldman Sachs Group Inc has announced plans to purchase a stake in Seattle-based Carrix Inc with intentions to fund future global port expansion projects. Carrix subsidiary SSA Marine is the largest US-owned port operator.
In a joint statement, the firms said that Goldman Sachs had committed a “significant” but undisclosed investment in Carrix.
According to Carrix chief executive Jon Hemingway the controlling Smith/Hemingway family will continue to hold a majority stake while the current management will remain unchanged.
Hemingway praised the deal as a creation of a “formidable partnership” that will help further the growth of Carrix and SSA Marine.
Goldman Sachs created its Infrastructure Partners arm in 2006, committing $6.5 billion to various investments including port projects. Reports say that it has already committed investments in Associated British Ports.
According to the spokesman for the American Association of Port Authorities Aaron Ellis, private industry entities, especially investment groups, are increasing their interest in marine terminals and ports as good investments.
This can be attributed to the rapid growth of global shipping demand, he said.
Ports need to expand to accommodate modern larger ships and a much higher volume of container throughput, he added.
“It comes back down to the fact that international trade is growing rapidly,” said Ellis.
“We're seeing major distribution shifts to countries like China and India. Manufacturing facilities there are growing at rates that are unparalleled anywhere else in the world,” he added.
In a joint statement, the firms said that Goldman Sachs had committed a “significant” but undisclosed investment in Carrix.
According to Carrix chief executive Jon Hemingway the controlling Smith/Hemingway family will continue to hold a majority stake while the current management will remain unchanged.
Hemingway praised the deal as a creation of a “formidable partnership” that will help further the growth of Carrix and SSA Marine.
Goldman Sachs created its Infrastructure Partners arm in 2006, committing $6.5 billion to various investments including port projects. Reports say that it has already committed investments in Associated British Ports.
According to the spokesman for the American Association of Port Authorities Aaron Ellis, private industry entities, especially investment groups, are increasing their interest in marine terminals and ports as good investments.
This can be attributed to the rapid growth of global shipping demand, he said.
Ports need to expand to accommodate modern larger ships and a much higher volume of container throughput, he added.
“It comes back down to the fact that international trade is growing rapidly,” said Ellis.
“We're seeing major distribution shifts to countries like China and India. Manufacturing facilities there are growing at rates that are unparalleled anywhere else in the world,” he added.