Ocean Network Express is continuing its expansion into port infrastructure with an agreement to acquire a 30% stake in Hutchison Laemchabang Terminal Ltd, one of the key operators at Thailand’s largest port.
The deal will give the Singapore-headquartered liner company an interest in the largest terminal operator at Laem Chabang, which runs terminals A3, C1 and C2, as well as Terminal D. For ONE, the move is about securing capacity at an important gateway in Southeast Asia.
Hiroki Tsujii, global chief officer of ONE’s Product & Network Division, described the investment as a significant step in the company’s strategy to secure capacity at major ports worldwide. He said a deeper relationship with Hutchison Ports should also support more reliable and efficient solutions for customers moving cargo through the Thai hub.
The transaction comes against the backdrop of wider uncertainty around Hutchison’s international terminals business. Parent group CK Hutchison has been seeking to sell terminal assets outside China, but a $22.8 billion transaction announced more than a year ago involving MSC and BlackRock has become entangled in geopolitical tensions. Beijing is understood to be pressing for the inclusion of a Chinese partner, widely believed to be Cosco Shipping.
At the same time, a separate attempt to sell Hutchison’s two terminals in Panama ran into trouble after the Panamanian government ruled the concessions for Balboa and Cristobal unconstitutional and took control of the facilities. CK Hutchison has called the move illegal and is seeking more than $2 billion in damages through international arbitration.
For ONE, the Laem Chabang investment is part of a wider diversification beyond its core container shipping business. The carrier, which is jointly owned by NYK, MOL and K Line, recently announced a deal to raise its holding in Atlas Corp to 49%. Atlas Corp owns Seaspan, the world’s largest container ship tonnage provider.
Completion of the Laem Chabang deal remains subject to regulatory approval.
