Federal Marine Terminals, which has operated the Eastport port terminal since 1981, is being acquired by a Canadian stevedoring company, but port operations are not expected to change with the new ownership.
Logistec Stevedoring Inc., a subsidiary of Logistec Corporation, a leading North American marine and environmental services provider based in Montreal, is acquiring the Canadian and U.S. marine terminal business of Fednav, including Federal Marine Terminals Inc. and the logistics division, Fednav Direct, for $105 million.
Fednav, also based in Montreal, is Canada’s largest bulk shipping company. The transaction, which is expected to close on March 31, will allow Logistec to strengthen its presence in Canada and the United States.
“Logistec is a very, very reputable company,” said Chris Gardner, executive director of the Eastport Port Authority. While the primary business of FedNav, the owner of Federal Marine Terminals (FMT), is operating cargo ships, “Logistec’s primary purpose is to operate terminals,” he points out, adding, “I’m optimistic. It may be a new opportunity to provide other leads for Eastport for shipping.”
The Estes Head port will now be operated by Logistec Terminals, and the FMT general manager in Eastport, Tom Critchley, says the company will be retaining all of FMT’s employees in Eastport and is not planning on making any major changes. “I’ve been told they’re saying it’s business as usual.”
FMT has operated terminal facilities at ports in Canada and the United States for over five decades. It provides stevedoring, handling and warehousing services for bulk, containerized, project cargo and general cargo.
The addition of 11 terminals represents a major expansion of Logistec’s network, bringing its total to 90 terminals in 60 ports across North America. The combined network will provide strategic gateways for existing and future customers, allowing Logistec to gain an important foothold in the Great Lakes region and access prime locations in the U.S. Gulf and East Coast regions.
Madeleine Paquin, president and CEO of Logistec, says, “Logistec and FMT have had a long‑standing business relationship for decades, and joining forces is a natural fit, as we share the same values. The combined capabilities and expertise of both organizations will create solid synergies to deliver operational excellence to marine shippers across North America.”
“As part of Logistec’s ambitious strategic plan to expand its marine services both geographically and operationally, this acquisition will allow us to gain a footprint in new markets in Canada and the USA,” added Rodney Corrigan, president of Logistec Stevedoring Inc. “Our customers will benefit from a large and efficient network, as well as strong expertise from the FMT team, and together we will continue to offer quality service to contribute to a safe, reliable supply chain.”
In a letter to Fednav’s partners, Paul Pathy, Fednav’s CEO and president, wrote that the “global evolution of the shipping business, combined with an increasingly competitive environment, triggered the need to rethink how our terminal and logistics businesses could evolve. Please be assured this transaction has no impact on our operations, and it is business as usual.”
He added, “Logistec, a company with cargo handling as its core business, will ensure FMT’s ongoing success and growth.”
Gardner stated, “I can’t say enough good things about the relationship with FedNav. The Pathy family honored their long-term relationship with Eastport, and that speaks volumes about their character.”
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