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>

<< Aug 2017 >>
MTWTFSS
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 31 1 2 3

Shipping2030 Asia

This year Shipping2030 Asia will take place with Global Liner Shipping conference, offering attendees unique access to networking with the container shipping industry…

read more >

Indonesia Marine & Offshore Expo (IMOX) 2017

Indonesia Marine & Offshore Expo (IMOX) 2017, Batamis an international maritime and offshore industrial event that brings an international…

read more >

Salvage & Wreck Asia

Could your business be affected by shipwreck? Are you a salvage professional or a wreck removal expert? …

read more >

DSM17

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

read more >