MSC in talks to purchase Hanjin stake in TTI Long Beach terminal

Geneva-based Mediterranean Shipping Co. has confirmed it is looking to buy the now insolvent South Korean shipping company’s 54 percent stake in the Southern California container terminal.

   Geneva-based ocean carrier Mediterranean Shipping Co. (MSC) is looking to buy Hanjin Shipping’s majority stake in Total Terminals International LLC (TTI), which operates the Pier T terminal at the Port of Long Beach in Southern California, a company spokesperson has confirmed in an e-mail to American Shipper.
   MSC, the second largest container carrier worldwide, currently owns a 46 percent stake in TTI Long Beach, with the other 54 percent owned by Hanjin.
   A recent report from Reuters news service cited a spokesman for the Korean bankruptcy court overseeing Hanjin’s receivership, who said the now insolvent shipping company has appointed an advisor to assist with the negotiations.
   The court ordered Hanjin to put up a notice of sale for its Asia-U.S. assets and sales network earlier this month, following its initial decision to file for bankruptcy protection on Aug. 31. Several carriers have been linked with a potential purchase of the company’s transpacific network, including fellow South Korean carrier Hyundai Merchant Marine (HMM), but no final agreements have been made as of yet.
   TTI’s Long Beach terminal has a maximum annual container handling capacity of 3 million TEUs and features an on-dock rail facility providing “one-stop intermodal service,” according to information on its website. The mile-long wharf at Pier T is equipped with the largest gantry cranes at any U.S. port, capable of handling vessels with a carrying capacity of over 10,000 TEUs.
   The Port of Long Beach earlier this month reported a 16.6 percent drop in cargo volumes in September compared with the same 2015 period, attributing the decline primarily to reduced calls by Hanjin-operated ships, along with the absence of the carrier’s containers on vessels operated by fellow CKYHE Alliance members COSCO, “K” Line, Yang Ming and Evergreen Line.
   According to ocean carrier schedule and capacity database BlueWater Reporting, a total of 21 direct region-to-region liner services call at the Port of Long Beach on a regular basis, including 14 from Asia. Four of these 21 loops include Hanjin or other members of the CKYHE Alliance – either as vessel operators or slot providers – and another three of the services include MSC.