The container shipping joint venture ONE is investing in South Korea’s first fully automated container terminal. The carrier thus also becomes a partner of a group that is interested in taking over ONE’s competitor HMM.
Ocean Network Express (ONE) is the world’s sixth-largest container liner shipping company. As a joint venture between the Japanese shipping groups K Line, NYK and MOL, the Singapore-based company also has its eye on access to terminals. ONE is already active in the port business in the USA, Indonesia and Europe’s largest seaport, Rotterdam.
Now it is taking a step towards South Korea – specifically Busan. The company has concluded a “long-term partnership agreement with the Dongwon Group, acquiring an indirect but significant stake in its subsidiary Dongwon Global Terminal Busan (DGT)”, it announced.
Hiroki Tsujii, Global Chief Officer of ONE’s Product and Network Division, said: “This strategic partnership supports our long-term growth objectives. With direct access to capacity in this important port region, our customers will benefit from more reliable and stable connections within Asia and the entire global network.”
DGT is South Korea’s first fully automated container terminal in Busan and uses automated guided vehicles (AGV). After completion of the final development phase, DGT is expected to have a capacity of more than 4.5 million TEU, including five large berths (1,750 m) and one feeder berth (385 m).
The Dongwon Group is already involved in the project. It is the largest fishing company in the country and wants to secure shipping capacity in this way. Dongwon is not only focusing on the terminal business. The group is also considered one of the most promising candidates for the takeover of South Korea’s flagship shipping company HMM. The state, which once rescued the carrier formerly known as Hyundai Merchant Marine, has been looking for a buyer for a re-privatization for some time. Hapag-Lloyd had also shown interest, but has since withdrawn from the bidding process.
In view of Busan’s importance as a major transshipment point and regional gateway, the new partnership should enable ONE to optimize the flow of goods and make transshipment processes more efficient. The shipping company’s share in the terminal company and the price paid for it were not made public by the partners.
