HMM: Preferred Bidder of Long Beach Terminal
South Korean ocean carrier Hyundai Merchant Marine (HMM) is still in the running to buy a majority stake in an operator of a container terminal at California’s Port of Long Beach, currently held by its bankrupt compatriot Hanjin Shipping.
Last week, it was reported that HMM decided to pull out of a joint bid with the Mediterranean Shipping Company (MSC) to acquire a 54 percent stake in Total Terminals International (TTI), and go for a minority stake in the operator instead, MANA correspondent reported.
This week, a consortium led by HMM is ”highly likely to be chosen as the preferred bidder for Hanjin’s U.S. port terminal,” warning that the process could potentially be dragged out due to complex procedures, according to Yonhap News.
HMM has already been named the preferred bidder for a container terminal in Algeciras, Spain, which is also partly owned by Hanjin Shipping. The deal is expected to be finalized by year end.
Earlier this month, HMM agreed to join the 2M alliance between Maersk Line and MSC as a ”strategic partner”. The partnership is a combination of slot exchanges and slot purchases between the three parties, with Maersk Line and MSC also taking over a number of charters and operations of vessels currently chartered to HMM.