HMM to Buy Stake in Long Beach Terminal
Hyundai Merchant Marine (HMM) has agreed to buy a 20 percent stake in Hanjin Shipping’s container terminal operator in the U.S.
The company will buy the stake in Total Terminals International (TTI) for $15.6 million. TTI runs facilities in Long Beach and Seattle and is 54 percent owned by Hanjin Shipping. The deal also includes a stake in equipment-leasing firm HTEC.
The Long Beach Container Terminal (Pier-T) has the capacity to process more than three million TEUs on and off vessels annually.
HMM will become the second largest stakeholder in TTI after MSC.
HMM said in a statement: “TTI’s handling volumes will dramatically increase, as we strengthen Asia-US services through strategic cooperation with 2M beginning of April.”
HMM will receive the same port tariff rates as MSC, and MSC will stand surety for TTI’s loans and lease which means HMM is not responsible for TTI’s debts.
Hanjin Shipping filed for court receivership in August last year.
Earlier this year, HMM announced that would initially employ around 220 of Hanjin’s workforce including onshore, offshore, overseas staffs and ship managers.