Dive Brief:
- In the latest divestiture for bankrupt Hanjin Shipping, former partner Mediterranean Shipping Company (MSC) has agreed to buy Hanjin's 54% stake in the Port of Long Beach, making MSC the sole owner of the port, The Wall Street Journal reported Tuesday.
- South Korea has approved the sale, along with the U.S. Bankruptcy court, both of which have overseen the line's financial floundering since August.
- Total Terminals International operates Pier T at the Port of Long Beach and Terminal 46 at the Port of Seattle.
Dive Insight:
While Hanjin's ultimate liquidation is not yet confirmed, the purchase of the TTI stake moves it closer to a full sale.
The sale of the port was more complex than originally expected, with potential purchasers dropping out in the following order: first Korea Line, to which Hanjin sold its Asia -U.S. route, business network and client information. Next up was Hyundai Merchant Marine, which dropped out of its joint purchasing plan with the MSC, citing debt concerns. Ultimately, MSC, which already owns 46% of the port, bought it alone.
Though the price remains undisclosed, the sale will help Hanjin clear its massive debt, as Pier T is one of the largest terminals within one of the busiest U.S. ports by tonnage handled.
