South Korea based shipping line Hyundai Merchant Marine, and Swiss-based global container shipping company MSC, have purportedly teamed up to buy a stake in Hanjin Shipping’s US-based port terminal. This story was first reported by Yonhap News.
According to the sources, Hyundai Merchant and the world’s number 2 shipper, MSC submitted a bid for a 54% stake in the port terminal (Pier T) in Long Beach, California, USA. This procurement is estimated at 400 billion won (US$342 million). MSC is the second-largest shareholder in the terminal operation with a 46% stake. It is also believed that a local private equity fund is attempting to bid for the terminal operation, with additional interest coming from South Korea’s SM group.
This new offer follows the recent news that saw Hyundai Merchant Marine chosen as the preferred bidder to buy Hanjin’s port terminal in Algeciras, Spain. Hyundai is expected to finalise its 100% stake in the Spanish terminal this month (December 2016).
Hanjin Shipping, the nation's No. 1 shipper that is currently in a state of bankruptcy and has been seeking to sell its assets in an effort to survive an industry-wide slump and cash shortage. Hanjin Shipping and local shippers have been under fiscal tension due to falling freight rates stemming from an oversupply of ships and a prolonged slump in the global economy.