Hanjin looks to sell Busan terminal stake
Korean ocean carrier Hanjin Shipping is looking to sell a 49 percent stake in its terminal in the Busan Newport.
A spokeswoman for the carrier confirmed to American Shipper that it is looking to sell a stake in the terminal, emphasizing the goal of the deal is to attract investment into the company, which was beleaguered in 2009 by the poor container shipping market.
The deal would see Hanjin temporarily part with nearly half of the terminal it opened in February in Busan's new port complex. Hanjin is reportedly seeking about $175 million for the stake.
'It is written in the contract that we will be repurchasing the stake after four years,' Hanjin spokeswoman Sonya Cho said.
Hanjin operates 12 container terminals, four in South Korea and eight abroad, including three in the United States. It has another three under development, including one in Jacksonville, Fla.
Hanjin also released its first quarter results Monday and said its container business had an operating loss of $8 million, down significantly from the $141 million the line lost in the first quarter of 2009. Cargo volume increase 30.1 percent to 817,000 TEUs, while revenue increased 38.8 percent to $1.35 billion. The container business accounts for 75 percent of Hanjin’s carrier revenue, with bulk shipping making up the rest.
As a whole, the line turned a $2.2 million operating profit in the first quarter, due to $10 million in operating profit from the bulk business (a major improvement on the $35 million the bulk division lost in the first quarter of 2009).