HMM to sell stake in Spanish container terminalKorea's leading shipper HMM said Monday that it has signed a deal to sell a 50-percent-minus-one-share stake in a container terminal in Spain to French shipping giant CMA CGM for 58.9 billion won ($49.5 million).
HMM said it will set up a joint venture with CMA CGM for their joint operation of Total Terminal International Algeciras (TTIA) in the south of Spain.
Despite the deal, HMM said it still maintains its position as the largest shareholder of the container terminal through HT Algeciras, a special purpose company wholly controlled by HMM.
The deal, which is subject to regulatory approval in Spain, is expected to be completed in the fourth quarter of this year, according to HMM.
The terminal, located in the south of Spain at a strategic point in the Strait of Gibraltar, has an annual handling capacity of 1.6 million twenty-foot equivalent units (TEU). TEU is a measurement of a ship's cargo capacity.
Currently, the terminal is used by leading global container shipping companies such as German container shipping line Hapag-Lloyd, CMA CGM and Chinese Cosco.
In 2017, HMM acquired a 100 percent stake in TTIA from now-defunct Korean shipping giant Hanjin Shipping for 115 billion won.
HMM said it expects a great synergy effect based on strategic cooperation with CMA CGM in terms of enhancing profitability and operational capabilities by securing additional cargo.
"TTI Algeciras has a great geographical advantage to play an integral role as a transshipment hub located at the center of containerized cargo flow on main trade lanes," an HMM official said.
"We believe TTI Algeciras will take center stage in the Gibraltar area as it has a high potential for future growth and development. We are expecting more business opportunities in the years to come based on stable operations of the terminal."