A joint venture will be established next year to integrate operations. JAPAN’S three major shipping companies– Nippon Yusen Kabushiki Kaisha, Mitsui OSK Lines and Kawasaki Kisen Kaisha—have agreed on Monday to merge their container shipping business via establishing a joint venture. The integration will also include the trio’s overseas terminal operations, according to a press release by MOL. NYK, MOL and K Line will respectively hold 38%, 31% and 31% stakes in the ¥300bn ($2.9bn) joint venture, which will control a fleet of 1.4m teu, or about 7% of the world total capacity. The combined fleet will rank sixth among the global liner shipping operators.
The JV is scheduled to be established on July 1, 2017, while the integrated operation is scheduled to start on April 1, 2018. MOL said the decision was made against a backdrop where the liner shipping market has been seriously plagued by a severe vessel glut, while more carriers are striving to tackle the situation through mergers and acquisitions. “Three companies have now decided to integrate their respective container shipping on an equal footing to ensure future stable, efficient and competitive business operations.” MOL said. “And by taking advantage of the scale merits of its vessel fleet totaling 1.4m teus, realise integration effect of approximately ¥110bn annually and seek swiftly financial performance stabilisation.”
“The new joint venture company aims to provide higher quality and more competitive services in order to exceed our clients’ expectations,” it added.
Source: Lloyd’s List
