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Canadian Teachers to Buy US Ports

The Ontario Teachers Pension Plan completed a $2.4 billion purchase of four marine ports from Orient Overseas (International) Ltd. These ports are located in: Vancouver and Delta in British Colombia, Staten Island, New York and New Jersey. The annual sales of the four ports combined are $500 million. Orient is a Hong Kong based company that owns one of the world`s biggest fleets decided to put the four ports up for sale after deciding to shift its business strategy towards shipping.

Jim Leech, senior vice-president at the Teachers and head of Teachers` private equity unit, Teachers Private Capital said: ?This acquisition represents solid, robust assets, has little vulnerability to market or economic vagaries, and features a very attractive growth profile that we will support,? He added that the ports were. ?well priced from an investment value perspective and offers the long-term cash flow we look for as a pension plan.?

The Teachers purchase these four ports is the latest in a series of infrastructure deals for Canada`s biggest pension funds. Teachers` has been busy in the marine terminal sector. The Ontario Municipal Employees Retirement System (OMERS) is a part of a group bidding for Britain`s largest port operator, Associated British Ports Holdings PLC. Usually Teacher`s makes its investments together with other pension funds but this time the made the purchase on its own. Teachers` $84.4 billion fund currently runs pension plans for 163,000 Canadian teachers, as well as, supporting 101,000 retired teachers.