Hyundai Merchant Marine (HMM) was chosen as preferred bidder to buy a port terminal in Algeciras, Spain.
HMM is expected to finalize its purchase of a 100 percent stake in Total Terminal International Algeciras in late December followed by due diligence on the assets starting on November 28 for a period of two to three weeks.
Total Terminal International Algeciras SA - Image courtesy of Jose Antonio Dominguez
Located in Algeciras, Spain, the TTI Algeciras is considered as the global strategic logistics hub as it serves as the intersecting point of the route connecting Europe with South America, and the other route linking Asia with North America.
The 357,750㎡ large terminal with the annual capacity of 1.86 million TEUs is one of the lucrative assets of the cash-strapped shipper.
It accommodates super large containerships with over 10,000 twenty-foot equivalent units.
Currently, Denmark’s Maersk Line, France’s CMA-CGM, China Cosco Shipping, Japan’s MOL and K Line use the terminal.
The company will be allowed to use the terminal until July 2040 upon the lease contract with the Algeciras port authority.
“(HMM) looks forwards to expanding terminal business and building a long-term growth drive with the new terminal.
It is planning to boost the competitiveness of the company by taking over additional Hanjin Shipping’s lucrative assets and constructing new vessels,” said HMM officials.
Owning three terminals in the US and Taiwan, the Korean shipper is working to expand the capacity of those terminals and to modernize the facilities.
It also holds 20 percent of the shares of container-only terminal RWG in Netherlands.
Source: HMM