Korean Court approves TTI sale to MSC affiliate

Hanjin Shipping’s plans to sell its stake in Total Terminals International to Terminal Investment Ltd. was approved Tuesday by a Seoul District Court and is now pending approval from U.S. authorities.    Hanjin Shipping has signed a deal to sell its stake in Total Terminals International (TTI) to Terminal Investment Ltd. (TIL), a company owned in substantial part by Mediterranean Shipping Co (MSC).
   The deal was approved Tuesday by a Seoul District Court, according to reports by Korea’s Yonhap News Agency, the Wall Street Journal, and others.
   TIL already owns a 46 percent stake in TTI, while Hanjin controls the remaining 54 percent stake in the marine terminal and stevedore operator, which has long-term leases and operating concessions at Pier T in Long Beach and Terminal 46 in Seattle.
   TIL’s purchase of Hanjin’s stake is pending approval from U.S. authorities, including the Port of Long Beach and the U.S. Bankruptcy Court in Newark, N.J.
   The Long Beach Board of Harbor Commissioners will consider the deal tonight.
   In a press release issued before the meeting, the port said, “If approved, the pact could bring in business to replace the cargo volume lost at Long Beach’s Pier T when South Korea’s Hanjin Shipping declared bankruptcy in August.”
   Joe Cook, global marketing director for MSC, said Hanjin, TIL and Korean liner carrier Hyundai Merchant Marine “are progressing approvals for completion of a purchase and sale agreement related to the Hanjin interests in TTI. The parties expect that all approvals will be achieved by early January 2017. As previously reported, our bid can be considered to be joint with HMM and they will acquire an interest in the terminal too.”
   In addition, the Long Beach Board of Harbor Commissioners tonight will consider amending an agreement with TTI that will commit the terminal operator to raising six existing cranes rather than 10 cranes at the terminal and to install two cranes capable of handling 20,000-TEU ships by Jan. 1, 2020.
   A document prepared for tonight’s commission meeting says that TIL will make a $10 million new investment in TTI.