Lebanon gives CMA CGM contract to operate Beirut container terminal
CMA
CGM said in a statement that they planned to invest $33m to renovate the
terminal and digitalize operations. According to Reuters, the deal expands CMA
CMG's presence in the eastern Mediterranean.
The
CMA CGM is the shipping company, which is controlled by the French-Lebanese
Saade family. The company fully acquired the container terminal at Tripoli port
in northern Lebanon in 2021. The company has a presence at Latakia port in
Syria. The company is the world’s 3rd largest container shipping company.
CMA
CGM Chairman and CEO Rodolphe Saade said that the Beirut contract is beneficial
for Lebanon and the rest of the country as it seeks to transform the terminal
into a "state-of-the-art facility".
The
contract also includes planning to rebuild and expand the infrastructure,
damaged in a massive chemical explosion in 2020. When the August 2020 Beirut
explosion killed more than 200 people and damaged entire neighborhoods, CMA
CGM joined French President Emmanuel Macron in relief efforts in Beirut after the
blast. This announcement was made some 18 months after the tragic incident.
The tragic incident was caused by a large amount of ammonium nitrate storedunsafely for years. Reportedly, a fire triggered the detonation of 2,750 tonnes
of ammonium nitrate that had been stored unsafely in a warehouse since 2014.
However, no one has been held accountable for the tragic incident even after 18
months. Reportedly, political and security officials knew of the dangers posed
by the shipment but failed to take action on time.
The
blast also exacerbated Lebanon’s crippling economic crisis. Reportedly,
earlier, CMA CGM had outlined plans to Lebanese officials for a separate $400
million to $600 million proposal to reconstruct the port after the tragic
incident.
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