South Korea’s shipping major Hyundai Merchant Marine and terminal operator PSA International have entered into an agreement to increase their stake in a Busan terminal.
Under the deal, signed on May 15, the parties acquired 40 percent and 10 percent stakes, respectively, from private equity investment firm IMM Investment.
On May 15, the share was officially transferred to the companies, and the Hyundai Pusan New-Port Terminal was renamed to Korea Shipping Partnership Pusan Newport Terminal.
Following the transaction, HMM and PSA each hold a 50 percent stake in the terminal.
HMM opted for the move in an effort to lower cargo handling costs, therefore increasing its competitiveness.
The shipping company, which earlier owned the entire terminal, disposed of a major stake in the facility over the period from 2014 to 2016. At the end of the period, HMM held only 10% of the terminal.
Separately, the shipping major unveiled its financial report for the first quarter of 2018, in which it said that its operating losses expanded to KRW 170.1 billion in the period, compared to a loss of KRW 131.2 billion reported a year earlier.
World Maritime News Staff