Hyundai Merchant Marine Co. (HMM) will purchase a port terminal in Spain which was operated by Hanjin Shipping Co.
The nation’s largest shipping company said in a regulatory filing on May 11 that it will buy a 100 percent stake in the Total Terminal International Algeciras (TTIA) in Spain for 117.6 billion won (US$104.02 million). It said the money to be used to make the purchase is equal to 12 percent of the company's net worth as of late 2016 and 2.7 percent of its total assets. The formal contract will be signed on the 15th.
The TTIA terminal is located in the strategic logistics hub in where Europe, Africa and South America intersect. It has an annual handling capacity of 1.86 million TEU and can accommodate large container ships with capacities of over 10,000 TEU. The terminal is used by global leading container shipping companies such as Mersk Line, CMA-CGM and COSCO.
Hanjin Shipping originally had the operating rights for the terminal, but HMM was selected as the preferred bidder in November last year after Hanjin’s bankruptcy. Once the formal contract is signed, HMM will secure the operating rights for the terminal by July 2040.
The company said, “The contract is to acquire a 100 percent stake in the TTIA owned by special-purpose company Algeciras Terminal Investment in order to secure the market competitiveness and expand the business basis. Currently, we are planning to buy the terminal on our own but we can purchase it through a joint venture in the future.”