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Hanjin Transportation may buy Hanjin Shipping’s Long Beach terminal

Hanjin Shipping may sell its container terminal at the Port of Long Beach in California to parcel delivery firm Hanjin Transportation to improve liquidity while it restructures, the Korea Times reports.

The terminal is one of the largest on the US west coast with annual throughput capacity of over 3m teu.

In the self-restructuring plan it submitted to its creditors in April, Hanjin said it planned to secure KRW 100bn ($90.7m) through the sale of the Long Beach terminal.

The South Korean line has so far raised around KRW 267.7bn ($242.m) through the sale of assets, trademarks and operating rights and offices around the world. The proceeds will likely be used to improve its liquidity before its debt relief deadline on September 4.

“I don’t think Hanjin Group has the financial room to reach the total of KRW 700bn to help the shipper [sic],” said a creditor group official told the Korea Herald. “It is very likely that the shipper [sic] will enter receivership.”

Among other divestments, Hanjin Shipping has sold its 21% stake in the Tan Cang Cai Mep International Terminal in Vietnam for KRW 23 bn ($20.8m) to Hanjin Transportation.

It has also sold a bulk carrier to H-Line Shipping for KRW 14bn ($12.7m) as well as its stake in H-Line Shipping itself for KRW 33bn ($29.9m).

 

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Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
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