Mediterranean Shipping Co (MSC) and Hyundai Merchant Marine (HMM) have teamed up to acquire Hanjin Shipping’s interest in Long Beach terminal.
The two liner companies have formed a joint venture (JV) to combine their volumes in Total Terminals International (TTI) and have submitted an offer for Hanjin’s 50% stake.
MSC already owns the second half of TTI through its subsidiary Terminal Investment Limited (TiL) and is now looking to take full control of the terminal with HMM’s assistance.
Alistair Baillie, president of TiL, said: “This investment will allow both companies to quickly consolidate their container volumes in the terminal and ensure its short term solvency and long-term viability.”
The two companies did not disclose how much they are paying to get control of Hanjin’s stake.
Kim Choong Hyun, chief financial officer at HMM, said: “HMM will be operating its owner services on the trans-pacific container trades through which we will be able to contribute our volumes.
“Together with MSC and TiL we are confident that we will be able to provide efficient shipping and terminal services to our customers.”
Rumours about MSC’s interest in Hanjin’s Long Beach terminal stake were rife in the market over the past few weeks.
The South Korean company is looking to sell assets as part of its rehabilitation process which followed its bankruptcy filing in late August.
As TradeWinds reported last week, MSC’s strategy in acquiring TTI has cast uncertainty and a lawyer representing Hanjin said “it violates the orders of US bankruptcy judge John Sherwood”.
