On January 30, 2019, South Korean shipping company Hyundai Merchant Marine (HMM) held a signing ceremony for the PSA-Hyundai Pusan New Port (PHPNT) Pier 4 sales contract, committing to become co-owner of the facility.
Under the sales contract, Yuanta-HPNT, a private equity fund, will acquire stakes of Waska Inc. which holds 50% stakes of PHPNT.
The private equity fund was established by HMM and PSA’s investments of 80% and 20%, respectively. The total investment amount will be KRW 221.2 billion (USD 198 million) which consists of HMM and PSA’s investment of KRW 177 billion — including Korea Ocean Business Corporation’s investment of KRW 50 billion — and 44.2 billion, respectively.
As result, HMM becomes co-owner of PSA-Hyundai Pusan New Port with PSA, each with 50% equal stakes.
With this contract, HMM said it also secured stable berths for 23,000 TEU mega containerships expected to be delivered in the second quarter of 2020.
In addition, HMM intends to optimize its profitability by reducing cargo handling costs at PHPNT. Furthermore, HMM plans to attract global liners engaged in the shipping alliance to call at Busan port in order to increase transit cargo volume and terminal revenue.
“Through the acquisition of PHPNT’s 50% stakes, HMM can strengthen its competitiveness and provide top priority to customer service at the same time. We will do our best to make PHPNT a worldwide hub port,” C.K. Yoo, HMM’s CEO, commented.