PSA expands presence at Canada's Halifax port

SINGAPORE-BASED port group PSA International is now the sole container terminal operator at the Port of Halifax in the Canadian province of Nova Scotia, having taken over the Fairview Cove terminal at the north end of the city.

PSA announced on Saturday (Apr 2) that it acquired Ceres Halifax, which runs Fairview Cove, from Japanese shipping company Nippon Yusen Kabushiki Kaisha.

With the completion of the deal, PSA now operates the 2 container terminals at the Halifax port, including its existing Atlantic Hub terminal at the south end of the city.

Atlantic Hub was the group's first coastal terminal investment in Canada. New investment in mega-vessel handling capability over the past 2 years have future-proofed its long-term competitiveness, allowing it to handle the largest vessels to call at Canada's ports to date, PSA said in a press statement.

Fairview Cove will complement Atlantic Hub's existing operations for vessels of up to 8,000 twenty-foot equivalent (TEU) capacity as part of its integrated offerings. Both terminals are now jointly branded under PSA Halifax.

PSA group chief executive officer (CEO) Tan Chong Meng said: "This will allow the port to expand its service offerings and transform it from a coastal to a global hub port - enhancing competition, presenting significant efficiencies and strengthening Halifax's position as a port of choice."

He added: "To this end, we look forward to greater collaboration with the Halifax Port Authority, CN Rail and other partners, as we seek to extend Halifax's hinterland to new markets."

The joint operations will allow the Fairview Cove terminal to build on its extensive railhead, roll-on roll-off capabilities and location to drive greater connectivity for shippers. At the terminal, additional westbound service options made available to importers from North Europe and California dovetail with weekly South Asia vessels, the group said.

PSA Halifax will continue to work closely with its stakeholders to jointly explore and develop sustainability-driven, value-add services beyond the port, to benefit supply-chain customers and the greater maritime ecosystem.

Jan Van Mossevelde, CEO of PSA Halifax, said the optimisation of berth capacity in the port "also supports the government's sustainability objective of reducing cross-town truck traffic".

Halifax Port Authority president and CEO Allan Gray noted: "Our operating model provides cost advantages to those looking for a reliable and efficient way to move cargo inland now and in the future."

He added that with a new long-term lease agreement in place with PSA Halifax, as well as more streamlined operations from the pilot station to the terminals, the authority is confident that it can work with partners to ensure the cost remains competitive.

Thomas Hayes, chair of the board of directors at Halifax Port Authority, said the new operating model will allow PSA Halifax to capture new efficiencies. This will help drive more cargo through the international gateway, creating opportunities for Nova Scotia manufacturers, importers and exporters, and more cargo-related jobs across the supply chain, Hayes said.

In December 2021, Canada's competition watchdog had flagged a potential loss of competition due to PSA's proposed acquisition of Ceres Halifax. At the time, the Competition Bureau Canada was investigating whether the transaction was likely to result in a substantial lessening or prevention of competition for marine carriers that make port calls at the Port of Halifax.

READ MORE:

• PSA International 2021 net profit up 18.2%
• PSA to acquire US supply chain company BDP International
• PSA International handles record container volumes of 91.5 million TEUs globally in 2021