The result would be an arrangement at Total Terminals International’s locations in Long Beach, California, and Seattle that is similar to the period when Hanjin was a majority owner and MSC was a minority partner. Hanjin had owned 54% until U.S. Bankruptcy Judge John Sherwood approved a deal on Jan. 18 to sell its stake to MSC for $78 million and forgive $54.6 million in debt.
“[We] will receive the same port tariff rates with MSC, and it will help reduce terminal handling costs and secure stable profitability,” Hyundai Merchant Marine wrote in a statement. “TTI’s handling volumes will dramatically increase, as we strengthen Asia-U.S. services through strategic cooperation with 2M beginning of April.”
Hyundai Merchant Marine wanted to issue a joint bid with MSC to Hanjin but withdrew over issues about its creditworthiness and said it would acquire a stake from MSC at a later time.
Volume at the Long Beach terminal fell about 50% to 650,000 industry-standard 20-foot equivalent units after Hanjin’s bankruptcy protection filing in late August 2016, according to court testimony. Hanjin Shipping told the court that TTI lost $37 million in earnings before interest, tax, depreciation and amortization in 2016, and Sherwood acknowledged on Jan. 18 that the terminal operator also could go bankrupt.
