Japan’s Trio Gets Nod for Container Shipping JV

Image Courtesy: NYK Line

The Competition Commission of Singapore (CCS) has granted its approval for the containership joint venture proposed by Japan’s big three container shipping companies in October 2016.

Kawasaki Kisen Kaisha (K Line), Mitsui O.S.K. Lines (MOL), and Nippon Yusen Kabushiki Kaisha (NYK Line) jointly applied for a decision by CCS on whether the creation of the JV would infringe the prohibition in the Competition Act against anti-competitive mergers.

Under the JV, the parties plan to merge their container liner shipping business, and their container terminal services businesses outside Japan. The only overlapping service of the parties that would affect Singapore is the provision of container liner shipping services, according to CCS.

The parties also provide logistics services, bulk shipping, car transport, and liquid transport, through their subsidiaries. However, such services will continue to be conducted by the companies separately and independently from each other and the JV.

CCS concluded that the creation of the joint venture, if carried into effect, “will not infringe the prohibition in the Act against anti-competitive mergers.”

“The JV is unlikely to increase the possibility of anti-competitive coordination given the large number of liners and low market concentration that would continue to exist post-JV,” CCS informed, adding that the clearance decision on the proposed joint venture was issued on March 14, 2017.

The parties earlier said that the new joint-venture company would operate a fleet totaling 1.4 million TEUs, placing the new company as sixth in the market with approximately 7% of global share.

K Line and MOL, which will each hold 31 percent, and their compatriot NYK Line, which will hold the remaining 38 percent, plan to establish the new joint-venture company on July 1, 2017, while business commencement is expected to start as of April 1, 2018.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >