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

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>

<< Jul 2018 >>
MTWTFSS
25 26 27 28 29 30 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 4 5

TRANSTEC 2018

TRANSTEC 2018 welcomes participants to explore Russian Ports and Shipping development opportunities…

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

SMM 2018

This is a must-attend event – a unique opportunity to meet key players, display business strengths, establish new contacts and exchange…

read more >

Defence Safety Conference Supported by The Defence Safety Authority, UK MoD

The Defence Safety Conference is the first of its kind exclusively dedicated to safety across the defence domain…

read more >