By Mark Edward Nero
Hyundai Merchant Marine and Mediterranean Shipping Co. have finalized the purchase of Hanjin Shipping’s interests in Total Terminals International, which operates facilities at the seaports in Long Beach and Seattle.
Hanjin put the interests up for grabs following its filing for bankruptcy last summer. Hanjin, previously the world’s seventh largest container carrier, filed for receivership last August after losing the support of financial institutions that had been providing it credit.
Under the acquisition, MSC subsidiary Terminal Investment Ltd. assumes 80 percent, and Hyundai Merchant Marine receives the other 20 percent, of all of Hanjin’s equity and shareholder loans in both TTI and an associated terminal equipment leasing company, Hanjin TEC.
“Our focus throughout the acquisition consultation has been, and will continue to be, rebuilding the business and servicing the needs of our affiliated shipping line MSC, its 2M partner Maersk, and our new joint venture partner HMM,” TIL President Alistair Baillie said in a statement.
With its purchase of Hanjin’s 54 percent stake in TTI, MSC became the sole owner of the terminal operator.
Hyundai and MSC jointly submitted an offer for the share in TTI in late 2016, however, Hyundai later decided to pull out of the joint bid in favor of a minority stake in the operator.
Showing posts with label Hyundai Merchant Marine. Show all posts
Showing posts with label Hyundai Merchant Marine. Show all posts
Thursday, February 2, 2017
Friday, September 2, 2016
Hanjin Shipping Files for Bankruptcy Protection
By Mark Edward Nero
Hanjin Shipping, the world’s seventh largest container carrier, filed a receivership application with the Seoul, South Korea Central District Court on Aug. 31 seeking court receivership after losing the support of financial institutions that had been providing it credit.
The company also stopped accepting new shipments in the wake of the filing, including at the Port of Long Beach’s Total Terminals Intl., in which Hanjin owns a majority stake.
Multiple banks, including state-run Korea Development Bank, withdrew backing for Hanjin on Aug. 30, stating that a funding plan was inadequate to tackle the company’s roughly $5 billion in debt.
The Central District Court, which accepted the receivership allocation on Sept. 1, will now decide whether Hanjin Shipping should remain in business or be dissolved. The process usually takes up to two months.
Financial problems, which have ailed the South Korea-based shipper for some time, reached a peak over the past week. Workers in the Korean port of Busan refused to work on a ship in recent days because the company hasn’t paid dues, forcing the cancellation of a berthing.
This led to three of Hanjin’s vessels being idled off the Los Angeles-Long Beach port complex this week, while one was stranded near the Port of Prince Rupert in British Columbia.
Another vessel was seized in Singapore on Aug. 29, while about 10 more were impounded at Chinese ports, for failing to pay service providers, according to the Korea International Trade Association.
According to South Korea’s Financial Services Commission, Hyundai Merchant Marine, which is the country’s second largest shipping line, will look to acquire Hanjin’s healthy assets, including profit-creating vessels and overseas business networks.
Hanjin Shipping, the world’s seventh largest container carrier, filed a receivership application with the Seoul, South Korea Central District Court on Aug. 31 seeking court receivership after losing the support of financial institutions that had been providing it credit.
The company also stopped accepting new shipments in the wake of the filing, including at the Port of Long Beach’s Total Terminals Intl., in which Hanjin owns a majority stake.
Multiple banks, including state-run Korea Development Bank, withdrew backing for Hanjin on Aug. 30, stating that a funding plan was inadequate to tackle the company’s roughly $5 billion in debt.
The Central District Court, which accepted the receivership allocation on Sept. 1, will now decide whether Hanjin Shipping should remain in business or be dissolved. The process usually takes up to two months.
Financial problems, which have ailed the South Korea-based shipper for some time, reached a peak over the past week. Workers in the Korean port of Busan refused to work on a ship in recent days because the company hasn’t paid dues, forcing the cancellation of a berthing.
This led to three of Hanjin’s vessels being idled off the Los Angeles-Long Beach port complex this week, while one was stranded near the Port of Prince Rupert in British Columbia.
Another vessel was seized in Singapore on Aug. 29, while about 10 more were impounded at Chinese ports, for failing to pay service providers, according to the Korea International Trade Association.
According to South Korea’s Financial Services Commission, Hyundai Merchant Marine, which is the country’s second largest shipping line, will look to acquire Hanjin’s healthy assets, including profit-creating vessels and overseas business networks.
Friday, July 15, 2016
Hyundai Joining 2M Alliance
By Mark Edward Nero
Hyundai Merchant Marine (HMM) announced July 14 that it has signed an agreement with the 2M Vessel Sharing Agreement (2M VSA) for providing joint service in the trans-pacific area beginning in April 2017.
The announcement comes following agreements with bondholders to adjust debt and shipowners to adjust charter-hire. The agreement is contingent upon finalizing negotiations and approval procedures in each country.
The 2M is a leading container shipping alliance comprised of the world’s two largest container carriers, Maersk Line (ML) and Mediterranean Shipping Co. (MSC). HMM is South Korea’s second-largest ocean carrier.
The agreement signed between HMM and the 2M carriers is binding in regards to HMM’s entry to the 2M VSA. By accessing 2M VSA network, HMM has said it would be able to strengthen its service offering and improve cost competitiveness.
Likewise, the 2M carriers say they would benefit from a reinforced service competency in Asia and improved network cover in the trans-pacific area.
“Based on the company’s sound financial structure, HMM will put its utmost efforts into improving our service offering to clients and to continue increasing operational competency in the second half of this year to continue improving profitability of our company” Hyundai Merchant Marine said in a prepared statement.
Thursday, December 15, 2011
Hyundai Merchant Marine to Partner with LA Port on New Mega Terminal
California United Terminals has reached an agreement to help build and occupy Pier 500, a 200-acre terminal planned for the southeastern edge of the Port of Los Angeles. Hyundai Merchant Marine, which owns California United and imports and exports goods to and from South Korea, announced the deal Dec. 13 in conjunction with the City of Los Angeles after Hyundai officials met with LA Mayor Antonio Villaraigosa.
“Partnerships like this are what we need to support local businesses, create new jobs, and retain the Port of Los Angeles’ title as the nation's number one shipping container port,” Villaraigosa said. “I am proud of the fact that Hyundai Merchant Marine has confidence in our relationship and our port.”
Pier 500 would cost more than $1 billion to complete and consist of a peninsula atop material along the south side of Pier 400. It would include automated devices to handle containers, as well as an on-dock rail system for trains to be loaded.
Even with a contract in place, however, the Pier 500 project still has to undergo the lengthy permitting and environmental review processes. It’s expected to take up to 10 years before the project is built and operational.
Currently, California United subleases 98 acres from APM Terminals at Pier 400, which is on Terminal Island, the area that connects the LA and Long Beach harbors. Before that, Hyundai was a tenant at the Port of Long Beach, but left in the last year after failing to reach an agreement with another tenant, OOCL, regarding the sharing of the terminal that will result from the under-construction Middle Harbor project.
“Partnerships like this are what we need to support local businesses, create new jobs, and retain the Port of Los Angeles’ title as the nation's number one shipping container port,” Villaraigosa said. “I am proud of the fact that Hyundai Merchant Marine has confidence in our relationship and our port.”
Pier 500 would cost more than $1 billion to complete and consist of a peninsula atop material along the south side of Pier 400. It would include automated devices to handle containers, as well as an on-dock rail system for trains to be loaded.
Even with a contract in place, however, the Pier 500 project still has to undergo the lengthy permitting and environmental review processes. It’s expected to take up to 10 years before the project is built and operational.
Currently, California United subleases 98 acres from APM Terminals at Pier 400, which is on Terminal Island, the area that connects the LA and Long Beach harbors. Before that, Hyundai was a tenant at the Port of Long Beach, but left in the last year after failing to reach an agreement with another tenant, OOCL, regarding the sharing of the terminal that will result from the under-construction Middle Harbor project.
Tuesday, October 5, 2010
Hyundai Joins Carriers Phasing Out Port Chassis
The number of ocean carriers announcing plans to stop providing container chassis at United States ports continues to grow.
Hyundai Merchant Marine announced last week that it will begin phasing out chassis at six gateway locations as of Nov. 1 and will expand the phase-out to the rest of the nation next year.
Hyundai joins a slew of other carriers – including Atlantic Container Line, CMA CGM, Cosco, Evergreen Marine, NYK Line, and Orient Overseas Container Line – that have announced this year they will phase out container chassis at US ports and other inland locations.
The Nov. 1 round of Hyundai's phase-out plan will affect Baltimore, Md., Buffalo, N.Y., Harrisburg, Pa., Miami, Fla., Philadelphia, Pa., and Worcester, Mass.
Hyundai Merchant Marine announced last week that it will begin phasing out chassis at six gateway locations as of Nov. 1 and will expand the phase-out to the rest of the nation next year.
Hyundai joins a slew of other carriers – including Atlantic Container Line, CMA CGM, Cosco, Evergreen Marine, NYK Line, and Orient Overseas Container Line – that have announced this year they will phase out container chassis at US ports and other inland locations.
The Nov. 1 round of Hyundai's phase-out plan will affect Baltimore, Md., Buffalo, N.Y., Harrisburg, Pa., Miami, Fla., Philadelphia, Pa., and Worcester, Mass.
