infrastructure investment

Background and Transaction Overview
Canada’s major pension funds — the Canada Pension Plan Investment Board (CPPIB) and the Ontario Municipal Employees Retirement System (OMERS) — are preparing to divest their combined controlling stakes in Associated British Ports (ABP), the largest ports operator in the United Kingdom.

1. Strategic Capacity Expansion
   • U.S. East Coast and Gulf Coast ports are aggressively investing to expand their infrastructure.
   • These expansions are aimed at solidifying their importance in global shipping networks and increasing throughput.
2. Trade Policy Headwinds
   • Recent U.S. trade measures are complicating the growth plans: new tariffs on Chinese goods, fees on China-linked vessels, and proposed duties on STS cranes.
   • These policies are raising operational costs and increasing risk for port operators.