Kawasaki Kisen Kaisha, Mitsui O.S.K. Lines, and Nippon Yusen Kabushiki Kaisha have announced that their new joint venture will operate under the name Ocean Network Express.
The establishment of the new JV, which will integrate the three companies’ container shipping businesses – including worldwide terminal operation businesses, excluding those in Japan – was first announced in October 2016.
NYK said on Wednesday that the establishment of a holding company is currently planned in Japan, and an operating company is planned to be incorporated in Singapore.
In addition, regional headquarters of the operating company will be set up in Singapore, Hong Kong, UK, US, and Brazil.
“The move will allow Ocean Network Express to better meet customers’ needs by providing high-quality, competitive services through the consolidation and enhancement of the three companies’ global network and service structures,” NYK said in a statement.
The establishment of the new joint venture will be officially announced once all anti-trust reviews are completed, said NYK. The service commencement date for Ocean Network Express is April 1, 2018. A new website informs stakeholders about the joint venture.
NYK, MOL and K Line will hold 38%, 31% and 31% stakes respectively in the new ¥300bn ($2.7bn) joint venture.
The new entity will control a fleet of 1.4m teu, or about 7% of the world’s total capacity, ranking it sixth among the global liner shipping operators. Individually, each only has a market share of around 2% to 3%, too small to survive as global carriers in today’s container markets.
Source: Lloyd’s List
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