HMM picked as preferred bidder for Hanjin Shipping’s Spain terminal

Hyundai Merchant Marine was named as the preferred bidder for near-bankrupt Hanjin Shipping’s Spanish terminal, the company announced Friday.

The company said it would complete the official contract to take over Total Terminal International Algeciras late next month after two or three weeks of due diligence. The exact value of the deal has not been disclosed.

Located in Algeciras, Spain, the TTI Algeciras is considered as a 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 358,000-square-meter terminal, which has an annual capacity of 1.8 million twenty-foot equivalent units, is one of the most lucrative assets of the cash-strapped shipper. It can accommodate super large containerships capable of carrying over 10,000 TEUs.

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, when the lease from the Algeciras port authority expires.

“(HMM) looks forward to expanding its 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 more lucrative Hanjin Shipping 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 and modernize the facilities.

It also holds 20 percent of the shares of container-only terminal RWG in Netherlands.

Struggling with massive financial difficulties caused by falling freight rates and a sluggish global economy, Hanjin Shipping -- once the world’s seventh-largest shipping company -- filed for court receivership in late August.

By Lee Hyun-jeong (rene@heraldcorp.com)