22.2 C
Tuesday, September 22, 2020
Home Most Visited HMM agrees Singapore terminal JV

HMM agrees Singapore terminal JV

South Korean liner operator HMM has acquired another container terminal as it continues to build a network of terminals to reduce its cargo handling costs and improve its earnings.

HMM announced on 3 September that it had entered into a joint venture with Singapore-based terminal operator PSA Corporation, the HMM-PSA Singapore Terminal (HPST), to operate a terminal in Singapore.

PSA will hold a 58% stake in HPST, while HMM will own the remaining 42%. The terminal will commence operations by the year-end.

Since HMM staved off bankruptcy in mid-2016, following a self-rescue effort that saw Korean banks take control of the carrier, the liner operator has set its sights on having more terminals worldwide.

HMM had fully owned the Busan terminal, but in 2016, sold around 70% of its holdings to PSA and Waska, a special purpose company controlled by South Korean private equity investor IMM Investment Corp. In January 2019, HMM regained control of HPNT by teaming with PSA to purchase the 50% stake held by Waska.

Following Hanjin Shipping’s collapse in February 2017, HMM acquired the former company’s terminal in Algeciras. On 13 August 2020, HMM also renewed the lease on its three terminals in Kaohsiung port in Taiwan, for five years.

HMM said that HPST will offer long-term hubbing certainty to its fast expanding global vessel fleet in PSA Singapore, as the company takes delivery of a dozen 24,000TEU ships and eight 16,000TEU ships in the near term.

“We believe this joint venture terminal in Singapore plays a significant role as a springboard for both parties to move forward to a new phase,” said HMM CEO Bae Jae-hoon, adding that HMM aims to create “greater synergy for our 24,000TEU vessels by securing berths and providing more reliable services for our customers.”

Martina Li
Asia Correspondent

- Advertisment - LR Sustainability Decarbonisation Digital Adverts

Latest Posts

LNG-powered container ship enhances CMA CGM’s fleet

The largest LNG-powered container ship in the world, CMA CGM Jacques Saade has joined CMA CGM Group's fleet. The new flagship of the Marseille-based shipping...

Konecranes secures automation service contract in Indonesia

Konecranes has announced a key contract in the delivery of automated port equipment services with the Kuala Tanjung Multipurpose Terminal (KTMT) in Indonesia. The two...

Antwerp digitalises its container release processes

Port of Antwerp has introduced a new digital, secure and integrated solution for the release of containers, named "Certified Pick up" (CPu), which will...

Government-backed JV to restructure Antong Holdings

Quanzhou Municipal Government has formed a joint venture, with Chinese state-owned entities, China Merchants Port Holdings (CMPH) and AVIC Trust, to restructure the financially...

Scandinavian port operator enters joins TradeLens

Copenhagen Malmö Port (CMP), a joint port operator for the Danish and Swedish ports, has initiated a collaboration with TradeLens, a digital platform developed...