Kawasaki Kisen Kaisha (K Line), Mitsui OSK Lines (MOL), and Nippon Yusen Kabushiki Kaisha (NYK) have set the launch date for a new joint venture that will operate under the tradename 'Ocean Network Express' on April 1, 2018.
The venture plans to merge the three companies’ container shipping and worldwide terminal operation businesses, excluding those in Japan, as previously announced in a notice of the agreement on October 31, 2016.
The FMC stated that the reason was “due to the tripartite agreement falling outside the jurisdiction of the Shipping Act of 1984”.
As a single merged company, it would be the world’s sixth biggest container operator and represent a 7% share of the global market.
Establishment of a holding company is currently planned in Japan, and an operating company is planned to be incorporated in Singapore.
In addition, regional headquarters of the operating company will be set up in Singapore, Hong Kong, United Kingdom (London), United States (Richmond, VA), and Brazil (Sao Paulo).
An announcement by K Line said: “The move will allow Ocean Network Express to better meet customers’ needs by providing high-quality, competitive services through the consolidation and enhancement of the three companies’ global network and service structures.
“The establishment of new joint venture will officially be announced once all anti-trust reviews are completed.”