Cosco Shipping may buy Hanjin Shipping’s port assets

China Cosco Shipping Corporation (Cosco Shipping) may consider acquiring Hanjin Shipping’s port assets, but it has no desire to buy any distressed ships from the Korean line, reports said.

News ID: 69208

Date: 01 October 2016 - 09:31

According to MANA, Xu Lirong, chairman of Cosco Shipping, ruled out the purchase of Hanjin Shipping’s container vessels, even when the opportunity has arisen as creditors have moved to impound the ships.

Xu told reporters at Cosco Shipping’s rebranding ceremony held on Wednesday that the group may, however, look at the possibility of taking over Hanjin Shipping’s port assets.

Hanjin Shipping operates 12 dedicated terminals and two logistics center globally, with annual handling capacity of 10m teu. Xu did not specify which of Hanjin Shipping’s port assets would be a acquisition target for Cosco Shipping.

Zhang Yongfeng, director at the shipping research and development department of Shanghai International Shipping Institute (SISI), observed that Cosco Shipping is itself struggling to utilise fleet capacity amid the severe tonnage supply glut.

“The acquisition of distressed ships at possibly attractive prices is indeed a rare opportunity for Cosco Shipping, but the group has to carefully weigh the consequences of taking on more tonnage,” he told.