A.P. Moller Capital is expanding its global port infrastructure presence through two major acquisitions, involving Singapore-based Portek International and European terminal operator Euroports. The deals would significantly strengthen the investment group’s position in key maritime and logistics markets, adding exposure to container handling, bulk commodities and multipurpose cargo operations.

The investment manager, which works with Danish shipping group A.P. Moller, agreed on October 15 to buy 100% of Portek International from Japanese trading company Mitsui & Co. It will achieve this through its Emerging Markets Infrastructure Fund II.

The announcement follows another deal, struck on September 28, under which A.P. Moller Capital plans to acquire a controlling stake in Euroports through a separately managed investment vehicle.

Neither transaction has disclosed any financial details. Both acquisitions are subject to customary conditions, including regulatory approvals.

Two acquisitions boost exposure to strategic trade routes

The proposed investments are in line with A.P. Moller Capital’s strategy to increase its presence in critical trade infrastructure and logistics networks.

Euroports would strengthen its European bulk and breakbulk handling, while Portek would give it access to a geographically diversified network of terminals in Africa, Asia and Europe.

Such operations are of special interest to the international supply chains carrying industrial materials, agricultural commodities, vehicles and containerised goods.

The acquisitions also come after the investment group’s participation in Berge, the Spanish port and logistics operator, and continue its strategy of assembling a portfolio through stakes in established infrastructure companies.

Portek adds 7 terminals across 3 continents

Portek International has interests in seven terminals in Algeria, Gabon, Indonesia, Latvia, Malta and Vietnam. Its activities consist of container handling, vehicle logistics and multipurpose cargo operations, port engineering and maintenance services.

The purchase would boost A.P. Moller Capital’s footprint in a number of important maritime markets and increase its exposure to various types of port operations.

“Portek is a good strategic fit for the investment manager,” said Semih Gokmen, partner at A.P. Moller Capital. He said the company's diversified international operations, established position in key trade flows and experienced local management teams were factors.

The group invests with the objective of developing existing operating businesses, supporting their long term performance and growth.

Euroports adds over 50 terminals to the portfolio

The majority acquisition of Euroports is another important step in the group’s European expansion.

Euroports manages a network of more than 50 deep-sea and inland terminals in 10 European countries and China. The company moves more than 70 million metric tons of cargo each year, supporting bulk and breakbulk supply chains for the agriculture, manufacturing and other industrial sectors.

Its network includes major port locations including Antwerp-Bruges in Belgium, Rostock in Germany, Venice in Italy and Port-la-Nouvelle in France.

Belgian investment institutions SFPIM and PMV will continue as shareholders in the transaction.

The new ownership group has plans to support Euroports management in expanding the company’s activities, geographical presence and customer base. The current governance structure and strategic direction will remain in place.

“The investment comes at a time when resilient supply chains and secure trade flows are becoming increasingly important to economic stability and growth,” said Kim Fejfer, CEO of A.P. Moller Capital. He also highlighted Euroports’ role in supporting European industry, food systems and manufacturing.

Broader Maersk port interests in the United States

In addition to these acquisitions, the port activities of the wider A.P. Moller group also cover its U.S. operations through the APM Terminals network of Maersk.

The company currently operates four U.S. container terminals located in Los Angeles, California; Elizabeth, New Jersey; Mobile, Alabama; and Miami, Florida.

APM Terminals has announced an initial investment commitment of $500 million in the development of Louisiana Gateway Port, extending the group’s infrastructure interests in the American market.

A larger footprint in global trading infrastructure

The Portek and Euroports deals would give A.P. Moller Capital significantly more exposure to international maritime and inland logistics infrastructure.

Under its management, the investments would yield a diversified portfolio of terminals and cargo-handling facilities across multiple continents supporting a wide range of industrial and commercial supply chains.

For A.P. Moller Capital, the strategy is more than simply adding more port assets to its portfolio. It also seeks to improve its position in the infrastructure underpinning international trade, from container movements to the transport of agricultural and industrial commodities.