SINGAPORE - South Korea's flagship shipper HMM has become the sixth container line to enter into a joint venture for container terminal operations in Singapore with port operator PSA.
Their tie-up - HMM-PSA Singapore Terminal (HPST) - will be 58 per cent owned by PSA, with HMM taking the remaining 42 per cent stake. HPST is scheduled to start operations before the end of this year, subject to regulatory approvals.
The strategic partnership will offer long-term hubbing certainty to HMM's fast-expanding global vessel fleet in Singapore, the partners said in a joint media release on Thursday (Sept 3).
HMM, previously known as Hyundai Merchant Marine, is taking delivery of a series of 24,000 TEU vessels this year, said to be the world's largest container ships. TEU stands for twenty-foot equivalent unit, used to measure a ship's cargo-carrying capacity. The dimensions of one TEU are equal to that of a standard shipping container that is 20 feet (6m) long, eight feet wide and eight feet tall.
Mr Jae-hoon Bae, president and chief executive of HMM, said: "Both HMM and PSA have extended their reach to every corner of the globe and have maintained a strong partnership based on mutual respect. We believe this joint venture terminal in Singapore plays a significant role as a springboard for both parties to move forward to a new phase.
"In addition, HMM looks forward to creating greater synergy for our 24,000 TEU vessels by securing berth on arrival and providing more reliable services for our customers through the joint venture."
Besides volume and terminal capacity assurance, PSA and HMM will also collaborate in operational technology developments and innovations.
Mr Ong Kim Pong, PSA International's regional CEO for South-east Asia, said, "We are honoured to join forces with HMM, one of the world's top ocean carriers and a globally integrated logistics company, to maximise operational synergies and address the rapidly changing landscape of the shipping industry."
PSA, a subsidiary of PSA International, already has joint venture terminals with shipping lines CMA CGM, Cosco, Mediterranean Shipping Company, Ocean Network Express and Pacific International Lines.
