Hanjin Shipping in talks to sell Long Beach Terminal stake

A Hanjin Shipping Co ship is seen stranded outside the Port of Long Beach, California.
A Hanjin Shipping Co ship is seen stranded outside the Port of Long Beach, California. PHOTO: REUTERS

SEOUL (REUTERS) - Hanjin Shipping is in talks to sell its stake in the Long Beach Terminal in California to Geneva-based Mediterranean Shipping Company (MSC), a spokesman for the Seoul court overseeing the shipper's receivership said on Friday (Oct 21).

Hanjin Shipping owns a 54 per cent stake in Total Terminals International, which operates Long Beach Terminal in the US MSC owns the remaining 46 per cent.

It has appointed an advisor, an overseas firm specialising in shipping industry talks, to help with the negotiations, the court spokesman said.

Hanjin, the first major shipping line to be dragged down by global industry overcapacity and low freight rates, put up other assets such as its US-Asia route manpower and logistics systems, five container ships and 10 overseas businesses, for sale earlier this month.

Hyundai Merchant Marine Co Ltd said it is considering submitting a preliminary bid for Hanjin assets used in its US-Asia routes, but prospects for additional interest are unclear.

Hanjin, which filed for court receivership on Aug. 31 after its creditors cut off financial support for the firm, had total debt of 6.03 trillion won ($5.4 billion) as of end-June.