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Maritime Market News

Korea's Heung-A and Sinokor to consolidate container shipping businesses

Ngày đăng: 29/03/2018 | Lượt xem: 1066

SOUTH Korea’s Heung-A Shipping and Sinokor Merchant Marine have decided to combine their container shipping businesses to boost their competitiveness on the global stage, in a move similar to the one enacted by Japan’s NYK, MOL and K Line.
 

The two firms plan to sign a letter of intent on April 3 to set up a new joint entity. They expect to complete the consolidation by the end of next year, said South Korea’s Ministry of Oceans and Fisheries.

Details of the new entity, such as name and governance structure, have not yet been decided. 

Heung-A, with a capacity of 47,000 teu, operates a total of 69 services within Asia while Sinokor, with a capacity of 55,000 teu, operates 60 services within Asia.

Heung-A posted Won13.1bn ($12.1m) of operating loss while Sinokor recorded Won61.3bn of operating profit last year.

The plan to merge their container shipping operations marks the two companies’ latest effort to maximise their resources and minimise costs through partnership.

They are already members of Korea Shipping Partnership, a 14-member South Korean national shipping consortium, which has been reorganising routes shared by the members.

After the consolidation of their containership businesses, Heung-A and Sinokor will remain within KSP and continue to co-operate with other members.

 Source: Lloyd’s List        
 

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