South Korea’s Hyundai Merchant Marine (HMM) has signed a sales contract to acquire a 50% stake in PSA Hyundai Pusan New-Port Terminal (PHPNT) Pier 4 in Busan.
Yuanta-HPNT, which was established by HMM and PSA’s investments of 80% and 20%, will acquire the 50% share currently controlled by Waska in PHPNT.
HMM and PSA will invest a total of KRW221.2bn ($198m) in PHPNT.
HMM will provide KRW177bn ($158m) of the total investment, which includes Korea Ocean Business’s KRW50bn ($45m), while PSA will provide KRW44.2bn ($40m).
The investment will make HMM a co-owner of PHPNT with PSA International, each holding a 50% stake in the terminal.
Hyundai Merchant Marine CEO C K Yoo said: “Through the acquisition of PHPNT’s 50% stakes, HMM can strengthen its competitiveness and provide top priority to customer service at the same time.
“We will do our best to make PHPNT a worldwide hub port.”
The newly signed contract has enabled HMM to secure stable berths for its 23,000 twenty-foot equivalent units (TEU) of mega containerships that are scheduled to be delivered in the second quarter of 2020.
The company is also expected to optimise its profitability by cutting down cargo handling costs at PHPNT.
HMM aims to attract global shipping companies involved in the shipping alliance to call at Pusan Port, while it expects to increase transit cargo volume and terminal revenue.