ONE to acquire 3 container terminals on U.S. West Coast
"Newly acquired container terminals will safeguard ONE’s access to terminal capacity in key and strategic gateways."
Photo by Fredrick Filix on Unsplash
Ocean Network Express (ONE) has signed definitive agreements to acquire 51 percent stakes in TraPac (TraPac) and Yusen Terminals (YTI), currently held by Mitsui O.S.K. Lines and Nippon Yusen Kabushiki Kaisha, respectively.
"TraPac is a container terminal operator and vessel stevedore that provides container terminal services in Los Angeles and Oakland. YTI is a container terminal operator and vessel stevedore that provides container terminal services in Los Angeles," says an official release from ONE.
These acquisitions are part of the integration of the container shipping businesses from the parent companies into ONE, the release added. "The recent disruptions to the supply chain due to Covid-19 have highlighted the importance container terminals play in keeping global trade flowing. The newly acquired container terminals will safeguard ONE's access to terminal capacity in key and strategic gateways, support its growth ambitions and enhance its service offerings to customers."
The closing of these transactions is subject to the approval of the relevant authorities, the release added.
ONE reported a 24 percent increase in Q2FY2022 revenue at $9.4 billion even as lifting dropped 9 percent to 2.9 million TEUs. Profit increased 31 percent to $5.5 billion.
For the first half of 2022, revenue increased 38 percent to $18.4 billion and profit increased 63 percent to $11 billion.
While revenue for the full year (2022) is likely to be flat at $30 billion, profit is seen declining 9 percent to $15 billion (down $1.5 billion) on declining demand and the deteriorating freight market.