Korea's HMM has teamed up with Singapore port operator PSA to take over PSA-Hyundai Pusan New Port (PHPNT) Pier 4 in Pusan.
The companies are spending KRW 221.2bn ($198m) to acquire the terminal from seller Waska.
The price consists of KRW 177bn from HMM, including Korea Ocean Business Corporation’s investment of KRW 50bn, and KRW 44.2bn from PSA.
The companies will hold 50% each after the deal through a sales agreement involving their 80%/20%-owned private equity fund Yuanta-HPNT.
"With this contract, HMM also secures stable berths for 23,000-teu mega-containerships expected to be delivered in the second quarter of 2020," it said.
"HMM can also optimise its profitability through reducing cargo handling costs at PHPNT. Furthermore, HMM plans to attract global liners engaged in the shipping alliance to call at Pusan port in order to increase transit cargo volume and terminal revenue."
HMM CEO CK Yoo added: “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.”
