Report: SM Could Ask HMM to Jointly Buy Hanjin’s US Terminal

Image Courtesy: APM Terminals; Illustration

SM Group, owner of South Korea’s shipping company Korea Line Corp., may propose a joint acquisition of Hanjin Shipping’s 54% stake in a container terminal at California’s Long Beach to another shipping company, Hyundai Merchant Marine (HMM), local media reports. 

Last week, Korea Line signed a KRW 37 billion (USD 31.4 million) agreement to buy the Asia-US route network from the bankrupt Hanjin Shipping and has been seeking to buy a stake in the firm’s terminal.

Hanjin’s stake in terminal operator Total Terminals International (TTI), which operates two facilities in Long Beach and Seattle, is estimated at more than KRW 400 billion (USD 342.5 million).

The joint acquisition is said to be a win-win solution for both companies, with Korea Line operating the line and HMM using it as leverage to join the 2M alliance.

Korea Line needs its own terminal to avoid troubles in shipping operations in the face of competition with rival carriers, according to an official at SM Group.

HMM would reportedly need financial support from its creditor, Korea Development Bank (KDB) to buy Hanjin’s stake.

Korea Line, which filed for court receivership five years ago, was acquired by SM Group in 2013. The company’s fleet is currently comprised of 25 ships carrying goods such as iron, ore, crude oil and cars. In addition, the company has 4 newbuildings on order, according to data provided by VesselsValue.

Hanjin filed for court protection in August 2016 after its creditors, led by KDB, decided not to provide additional financial support to the company.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jun 2017 >>
MTWTFSS
29 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

DSM17

Donsö Shipping Meet 2017 is an all inclusive exhibition. Meals, electricity, meeting schedule and banquette dinner is included…

read more >

TOC Europe

TOC (The Terminal Operations Conference) has long been considered best in class by container terminal operators and their suppliers…

read more >

Marine Philippines 2017

The 4th edition of PHILIPPINES MARINE 2017, SHIPBUILD PHILIPPINES 2017 and OFFSHORE PHILIPPINES 2017 is the only specialized Shipbuilding…

read more >

Bunkering Week 2017

IBC’s biennial Bunkering Week is back with its successful series of 3 co-located events: 8th Bunkering in Asia, 4th LNG Bunkering and EMTECH: Ship Emissions Technology Conference.

With a proven track record of bringing together top decision makers from various industry sectors, this remains the go to event for ship owners, fuel suppliers, traders and technology solution providers. Get in-depth and detailed market insights from experts who are taking the decisions, assess peer strategies and give shape to your own in this unrivalled gathering of shipping and marine fuel industry leaders.

Key Highlights for 2017:

* 3 Co-located Conferences

* 12+ Hours of Networking Time

* In-depth Review of Shipping Markets by Segment

* Ship Owner Positions on Emissions Compliance Scenarios

* Pricing Differentials and Availability across Different Fuels

* Technology and Analytics in Fuel Management and Emissions MRV

More info

read more >