ONE Acquires Stakes in Three California Box Terminals
Japanese container shipping company Ocean Network Express (ONE) announced it has acquired controlling stakes in three California container terminals amid a push by many of the world's largest global shipping lines to expand their presence in the port infrastructure component of the logistics chain.
ONE, which is jointly owned by the Japanese shipping lines Nippon Yusen Kabushiki Kaisha (NYL), Mitsui O.S.K. Lines (MOL) and K Line, said it signed definitive agreements to acquire a 51% stake in each of TraPac and Yusen Terminals (YTI), both separately owned by ONE parent companies.
"These acquisitions are part of the integration of the container shipping businesses from the parent companies into ONE," the company said in a statement.
TraPac, currently held by MOL, is a container terminal operator and vessel stevedore that provides container terminal services in Los Angeles and Oakland. YTI, currently held NYK, is a container terminal operator and vessel stevedore that provides container terminal services in Los Angeles.
The move comes as shipping giants like Denmark’s A.P. Moller-Maersk, France's CMA CGM and Germany’s Hapag-Lloyd continue to acquire land-based ports and logistics assets to help protect against supply chain crunches.
"The recent disruptions to the supply chain due to COVID-19 have highlighted the importance container terminals play in keeping global trade flowing," ONE said. "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."
Financial terms of the deals were not disclosed.
Closing of the transactions is subject to the approval of the relevant authorities, ONE said.