The funds came from a US$265-million pool of loans that the shipping company will draw on, as needed, as the first phase of the KCT redevelopment is executed.
CGM CMA reported a growth in KCT’s terminal equipment assets over six months, from US$9 million last June to US$103.4 million at its financial year ending December 2016.
CMA CGM and Terminal Link hold a 30-year concession for KCT, which they operate through a company called Kingston Freeport Terminal Limited.
The US$265 million of loans mature in June 2031.
“As at December 31, 2016, such financing has been partially drawn for an amount of US$56.4 million,” according to CMA CGM’s annual report.
The funds will finance the deepening of the navigation channel, reinforcing part of the existing quay and the procurement of new equipment to expand the terminal capacity from 2.8 million to 3.2 million TEUs, or twenty-foot equivalent container units.
Kingston Freeport plans to develop KCT as a strategic hub to take advantage of the widened Panama Canal, which can now transit super cargo ships.
Published in the Jamaica Gleaner
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