31. Oktober 201611:40Schifffahrt

K-Line, MOL and NYK have agreed integration of container shipping businesses

Kawasaki Kisen Kaisha, Ltd., Mitsui O.S.K. Lines Ltd., and Nippon Yusen Kabushiki Kaisha have agreed, after the resolution by the board of directors of each company held today, and subject to regulatory approval from the authorities, to establish a new joint-venture company to integrate the container shipping businesses (including worldwide terminal operating businesses excluding Japan) of all three companies and to sign a business integration contract and a shareholders agreement.

Background

Although growing modestly, the container shipping industry has struggled in recent years due to a decline in the container growth rate and the rapid influx of newly built vessels. These two factors have contributed to an imbalance of supply and demand which has destabilized the industry and has created an environment that is adverse to container line profitability. In order to combat these factors, industry participants have sought to gain scale merit through mergers and acquisitions and consequently the structure of the industry is changing through consolidation. Under these circumstances, three companies have now decided to integrate their respective container shipping on an equal footing to ensure future stable, efficient and competitive business operations.

The new joint-venture company is expected to create a synergy effect by utilizing the best practices of the three companies. And by taking advantage of scale merit of its vessel fleet totaling 1.4 million TEUs, realize integration effect of approximately 110 billion Japanese Yen annually and seek swiftly financial performance stabilization. By strengthening the global organization and enhancing the liner network, the new joint-venture company aims to provide higher quality and more competitive services in order to exceed our clients’ expectations.

Overview of the new joint-venture company

Shareholders/ Contribution Ratio
Kawasaki Kisen Kaisha, Ltd. 31%, Mitsui O.S.K. Lines, Ltd. 31%, Nippon Yusen Kabushiki Kaisha 38%

Amount of Contribution
Approx. 300 Billion JPY (Including fleets, share of terminals as investment in kind)

Business Domain
Container Shipping Business (Including terminal operating business excluding Japan)

Fleet Size
Approx. 1.4 Million TEU*, 6th in the market with approx. 7% of global share (Figures are as of October, 2016 excluding order book, Source: Alphaliner)

Schedule

Agreement date:
October 31st, 2016

Establishment of the new joint-venture company:
July 1st, 2017 (planned)

Business commencement:
April 1st, 2018 (planned)
 

Picture gallery (1 Image)

K-Line, MOL and NYK have agreed integration of container shipping businesses Zur Bildergalerie
    Press contact
  • Kawasaki Kisen Kaisha, Ltd.
    Kiyoshi Tokonami
    General Manager, Investor & Public Relations Group
    Tel.: +81-3- 3595-5189

    Mitsui O.S.K. Lines, Ltd.
    Kayo Ichikawa
    General Manager, Public Relations Office
    Tel.: +81-3- 3587-7015

    Nippon Yusen Kabushiki Kaisha
    Ushio Koiso
    General Manager, Corporate Communication and CSR Group
    Tel.: +81-3-3284-5058)