HMM holds ‘PSA-Hyundai Pusan New Port (PHPNT) sales contract’ signing ceremony
On January 30, 2019, HMM announced that it held a signing ceremony for the ‘PSA-Hyundai Pusan New Port (PHPNT) Pier 4’ sales contract. Over 100 participants joined the signing ceremony hosted at the PHPNT office in Pusan, including Young-Choon Kim (Minister of Oceans & Fisheries of Korea), Kichan Nam (President Busan Port Authority), C. K. Yoo (HMM President & CEO), and Roger Tan Keh Chai (PSA Regional CEO Northeast Asia), HMM said Wednesday.
This sales contract includes that the private equity fund, Yuanta-HPNT, which was established by HMM and PSA’s investments of 80% and 20%, respectively, will acquire stakes of Waska Inc. which holds 50% stakes of PHPNT.
The total investment amount will be KRW 221.2 billion which consists of HMM and PSA’s investment of KRW 177 billion (including Korea Ocean Business Corporation’s investment of KRW 50 billion) and 44.2 billion, respectively. As result, HMM becomes co-owner of PSA-Hyundai Pusan New Port with PSA, each with 50% equal stakes.
With this contract, HMM also secures stable berths for 23,000 TEU mega containerships expected to be delivered in the second quarter of 2020. HMM can also optimize its profitability through reducing cargo handling costs at PHPNT. Furthermore, HMM plans to attract global liners engaged in the shipping alliance to call at Pusan port in order to increase transit cargo volume and terminal revenue.
HMM’s CEO C.K. Yoo, said, “Through the acquisition of PHPNT’s 50% stakes, HMM can strengthen its competitiveness and provide top priority to customer service at the same time. We will do our best to make PHPNT a worldwide hub port.”
Commemorative group photograph taken at the signing ceremony: (From left to right) Ho Seon Hwang (President of KOBC), Roger Tan Keh Chai (PSA Regional CEO Northeast Asia), Young-Choon Kim (Minister of Oceans & Fisheries of Korea), C.K. Yoo (President & CEO of HMM), and Myungsuk Suh (CEO of Yuanta Securities).
HMM is a global integrated logistics company providing the transport services and is one of the world’s top ocean carriers. Since launching our first service with three VLCCs (Very Large Crude Carriers) in 1976, HMM has substantially expanded into the world-class integrated logistics service provider by adding various types of vessels – container ships, bulk carriers, trampers, heavy lifts, and special product carriers – hence sharpening the competitive edge. As a result, HMM has gained a diverse business portfolio and structure that can yield stable revenue despite the market change in certain fields of the shipping industry.