Potential knock-on effect of NOL-Hapag merger
• Hamburg investor group, NOL bid for Hapag-Lloyd
• NOL, Hamburg consortium vie for Hapag-Lloyd
• NOL, Hamburg consortium only bidders left for Hapag-Lloyd
An interesting subplot of a potential takeover of Hapag-Lloyd by NOL, if the Singapore company’s bid for the German carrier is successful, is how it would affect volume through individual ports.
In a presentation Friday, John Petrino, general manager of trade management for the Georgia Ports Authority, showed that Maersk brings the largest amount of volume through the Port of Savannah’s container terminal.
But Petrino, speaking at the South Asia Ports, Logistics and Shipping 2008 conference in Mumbai, also showed Hapag-Lloyd, with 259,000 TEUs, and APL (the liner carrier of NOL), with 121,867 TEUs, were both significant providers of business to the East Coast port. In fact, if you combined their volumes through Savannah, a joint APL-Hapag entity would surpass Maersk through the Georgia gateway. Of course, that doesn’t factor in duplicative services that might be phased out if the merger does take place, but the combined might of such a carrier would certainly shake up service patterns as well as volume standings.
On the other side of the coin, GPA might sweat such a merger, figuring the two carriers operating separately might bring more volume to the port than a single entity would.
With both NOL, and a Hamburg consortium intent to keep Hapag-Lloyd in German hands, both having submitted formal bids over the last few days, the wondering may not have to wait much longer.