Ocean Network Express establishes operating, holding companies

Moving one step closer to completion, Japanese carriers MOL, NYK and “K” Line have now established an integrated container shipping business via operation and holding companies in Singapore and Tokyo, respectively.    Japanese container lines Mitsui O.S.K. Lines (MOL), Kawasaki Kisen Kaisha (“K” Line) and Nippon Yusen Kabushiki Kaisha (NYK) are one step closer to merging their container businesses, having announced the establishment of an integrated container shipping business and holding company.
    The “Ocean Network Express” (ONE) has been established as an operating company in Singapore and a holding company in Tokyo as of Friday. Additional details on the establishment will be provided next week, MOL said in a statement.
   The venture has “received all necessary approvals for compliance with local competition laws,” added “K” Line, despite the merger being rejected by regulatory authorities in South Africa.
   According to “K” Line, “there is no impact on the three companies’ integration plans for the new container shipping business” and operations are still slated for commencement in April 2018.
   London-based shipping research and consulting firm Drewry said last month that the Ocean Network Express would be the sixth largest container carrier in the world once it commences operations.
   According to ocean carrier schedule and capacity database BlueWater Reporting’s Carrier Ranking Report, based on operating fleet capacity, as noted in the above-linked article, NYK is the ninth largest carrier in the world with 588,711 TEUs, while MOL comes in at 11th with 536,820 TEUs and “K” Line takes 14th place with 354,616 TEUs.