Korea's largest ocean carrier Hyundai Merchant Marine (HMM) and Singapore-based terminal operator PSA International have secured complete ownership of a Port of Busan terminal.
Both HMM and PSA will each hold a 50% stake in the Korean terminal after purchasing the remaining stakeholder shares from a Korean venture capital investment firm IMM Investment in a deal on May 15, 2018.
Due to the new ownership, the terminal has changed its name from Hyundai Pusan New-Port Terminal to Korea Shipping Partnership Pusan Newport Terminal.
HMM fronted a majority of the final investment with PSA to take joint ownership, securing 40% of the remaining shares in order to lower its cargo handling costs.
PSA took 10% of IMM Investment’s stake.
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HMM’s ownership in the terminal decreased to 10% in 2016 after it sold shares due to mounting debts.
Operating the terminal will help HMM to become more competitive amongst the world’s largest container shipping companies, and achieve its goal to control 5% of the world fleet by 2021 — around 1 million TEU.
Over the course of 2017, Busan built its TEU volumes up to rival Hong Kong in the top 10 rankings.
HMM's increased stake in the terminal will support plans made by South Korea's government at the start of 2018 to grow the country's industrial and logistics infrastructure by developing eight of its ports including Busan.
Korea is also allocating funds towards its shipping industry by ordering 200 vessels, with HMM's fleet benefitting from the investment.