HMM has signed a sales and purchase agreement with CMA CGM for the sale of its 50% stake minus one share in Total Terminal International Algeciras (TTI Algeciras).
Although it has decided to sell its own 50% stake minus one share in TTI Algeciras, HMM still maintains its position as the largest shareholder through its special purpose company HT Algeciras.
HT Algeciras is wholly controlled by HMM and holds the remaining 50% stake plus one share.
It is expected that this strategic cooperation with CMA CGM will create a greats synergy effect in terms of enhancing profitability and operational capabilities through securing additional cargoes.
In a statement, HMM noted: “TTI Algeciras has a great geographical advantage to play an integral role as a transhipment hub located at the centre of containerised cargo flow on main trade lanes.
“We believe TTI Algeciras will take centre stage in the Gibraltar area as it has a high potential for future growth and development. We are expecting more business opportunities in the years to come based on stable operations of the terminal.”
The transaction, subject to regulatory approval, is expected to be completed in the fourth quarter of 2020 for joint operations to be started.
The financial details including the price of the deal were not disclosed.
Located in the south of Spain, TTI Algeciras is the first semi-automatic terminal in southern Europe and the Meditterranean area.
It initiated operation in May 2010, with HMM having acquired its 100% stake in the terminal in 2017 from Hanjin Shipping, and has a total area of 357,740 sq m.
The 1.6m teu capacity terminal can accommodate the latest container vessels with eight ship-to-shore (STS) cranes, 32 automatic stacking cranes (ASCs) and 21 shuttle carriers.