What AP Moller-Maersk Group is planning after recent activity to sell over $4bn of its assets? Where will the company invest the money? How this will affect the container shipping industry?
The most profitable part of the group is Maersk Oil, the other companies APM Terminals and Maersk Line generate also a big income and AP Moller-Maersk Group could invest there. The group could put money to keep its dominant position on the liner industry. The container terminal business of the company is APM Terminals and it is generating a good profit. This company is having a big number of projects that are currently active. The aim of the company is the growth emerging markets with main interest on developing greenfield, deep-water facilities serving gateway traffic on a multi-user basis.
Most of the money will be probably headed to the Maersk Line. The AP Moller-Maersk Group's liner shipping division will have probably the biggest share of invested capital. The group's strategy for the future is to keep its title for world number one, to reduce the costs and to have the most balanced ship's size fleet.
All of the Maersk Line fleet is above 11,000 TEU, owned vessels are between 15,000-18,000 TEU. Compared to another big company MSC, Maersk has more larger vessels and has strong positions, but it is obvious that the Maersk does not have vessels in the range of 13,000 TEU,s New Panamax and will probably invest in this size ships. Panama Canal will be widened in the end of 2015 and the company could use this upgrade.
The AP Moller-Maersk Group has high profit from oil and gas exploration and production in related businesses. APM Terminals has big chance to receive part of the money for re-investment. Maersk Line also is expected to receive a big share in order to stay competitive, to have a balanced fleet and to keep its leading position on the market.