A unit of China’s state shipping giant Cosco Shipping Holdings said it would sell its American container port to address security concerns of the U.S. government.
Hong Kong-based shipping line Orient Overseas International Ltd. (OOIL) said Tuesday that it agreed to sell the Long Beach Container Terminal business in Southern California to a consortium led by Macquarie Infrastructure Partners for $1.78 billion.
The sale is part of Cosco’s agreement with the U.S. government to clear its $6.3 billion takeover of OOIL in 2017.
The Long Beach terminal is the second-largest port in the U.S. after nearby Los Angeles. The port imported 6.8 million TEU (twenty-foot equivalent units) in 2016, and about 66% of its freight volume is with China.
OOIL said it expects to book an estimated gain before tax of about $1.09 billion from the sale.