HMM has agreed to sell a 50% stake minus one share in Total Terminal International Algeciras (TTI Algeciras) to French rival CMA CGM.
The South Korean shipowner said it expected the deal to enhance the terminal’s profitability and operational capabilities by securing additional cargoes.
The remaining 50% stake plus one share is held by HT Algeciras, which is a special purpose company wholly controlled by HMM.
The transaction, subject to regulatory approval, is expected to be completed by the fourth quarter. Financial terms of the deal were not disclosed.
“TTI Algeciras has a great geographical advantage to play an integral role as a trans-shipment hub located at the centre of containerised cargo flow on main trade lanes,” an HMM official said.
“We believe TTI Algeciras will take centre stage in the Gibraltar area as it has a high potential for future growth and development.
TTI Algeciras, which is based in southern Spain, was formerly operated by Hanjin Shipping but HMM acquired the terminal outright in 2017.
HMM said the facility is the first semi-automatic terminal in southern Europe and the Mediterranean area. It has a maximum handling capacity of 1.6m teu.
In May, HMM posted a loss of KRW 65.6bn ($55m) for the first quarter, down from a loss of KRW 178.5bn for the same period last year.
HMM is estimated to have accumulated total losses of about $3bn for its owners since 2015, according to Alphaliner.
The shipowner is in the middle of a massive expansion of capacity as it takes delivery of a series of the world's largest containerships.
The move comes amid a downturn in demand that has resulted in about one-third of the carrier's container fleet being idled.
HMM has recently seen a huge injection of cash from companies backed by the South Korean state, which bought convertible bonds issued by HMM.
It received KRW 720bn from state-controlled Korea Development Bank and Korea Ocean Business Corp, which raised their stake to 73.6% from 69.2%.
