MISC is exiting its loss making container line business as it focuses on the energy transportation sector, Seatrade Asia online reports. “Given MISC’s increasing focus on maritime and transportation solutions for the energy sector, the opportunity cost of MISC remaining in the liner business with the expected larger demand of investment resources to stay relevant, has unfortunately reached an untenable position for the company,” MISC said on Thursday.
MISC its liner business had lost $789m over the past three financial years.
Malaysia’s largest shipowner restructured its liner business at the beginning of 2010 to focus on intra-Asia but the company said the rapid pace of change in the industry with investments in ever larger vessels coming at a time when it was “plagued with overcapacity” had put its restructuring at risk.
The company said it would be disposing of its liner related assets and withdrawing from various trade alliances. It expects the process to be complete by the 30 June 2012.
MISC its liner business had lost $789m over the past three financial years.
Malaysia’s largest shipowner restructured its liner business at the beginning of 2010 to focus on intra-Asia but the company said the rapid pace of change in the industry with investments in ever larger vessels coming at a time when it was “plagued with overcapacity” had put its restructuring at risk.
The company said it would be disposing of its liner related assets and withdrawing from various trade alliances. It expects the process to be complete by the 30 June 2012.