South Korean shipping company Hyundai Merchant Marine (HMM) said that it plans to buy a 20-percent stake in Total Terminals International LLC (TTI), the terminal operator at the largest container terminal at Californian Port of Long Beach.
The company said that its board of directors approved the USD 15.6 million deal, which also includes the purchase of a stake in the equipment-leasing firm HTEC.
HMM added that it will receive the same port tariff rates with Geneva-based Mediterranean Shipping Company (MSC) and it will help reduce terminal handling costs and secure stable profitability.
The announcement was made following reports that the US Bankruptcy Court approved the USD 78 million sale of Hanjin Shipping’s stake in TTI to Terminal Investment Limited (TIL), an affiliate of MSC.
With the purchase of Hanjin’s 54 percent stake in TTI, which operates container terminals at the Port of Seattle and the Port of Long Beach, MSC became the sole owner of the terminal operator.
In late 2016, HMM and MSC jointly submitted an offer for the share in TTI, however, HMM decided to pull out of the joint bid and go for a minority stake in the operator.