Closer to becoming global total logistics company

Hanjin Shipping is making a further step to become a global total logistics company. The company is enlarging its size by aggressively investing in fleet and promoting shipping/logistics related businesses, which are expected to become the next drive forces of the company.

 

Expanding bulk line business through aggressive investment

As the first step to execute the expansion plan of its bulk line business, Hanjin Shipping has ordered today 2 VLCC (Very Large Crude Carriers) for its own.

Based on the companyбпs policy to increase the portion of the bulk line business, which is now approximately 20% of total sales, Hanjin Shipping is putting large efforts into improving its business competency and expanding its fleet. As part of the plan, Hanjin Shipping successfully established a tanker corporation in Singapore in 2007 and recently merged with one of its subsidiaries, Keoyang Shipping. 

Moreover, along with 20 some middle/long term chartered bulk vessels to be delivered this year, Hanjin Shipping is planning on expanding its bulk fleet from current 100 some ships including 30 some cape-sized to approximately 250 vessels in 5 years.

 

Improving competency of container line business

Last February Hanjin Shippingбпs container line division concluded the contract for chartering a total of 9 13,000TEU class ships for more than 12 years. Adopting these mega-sized vessels was the companyбпs strategic decision to reduce operating cost and improve service quality and also the response to the global demand for mega-sized vessels.

Furthermore, Hanjin Shipping plans on almost doubling its container fleet from current 350,000TEU (11th in global scale according to AXS-Alphalinerбпs Order Book in March, 2008) up to approximately 670,000TEU (7th in global scale).

 

Developing shipping/logistics related businesses

Besides strengthening its core businesses, Hanjin Shipping is also developing shipping/logistics related businesses, which are expected to become the companyбпs next drive forces.

Hanjin Shipping is planning on expanding 3PL business by extending its global network and completing its internal system. This will allow the company to have stronger business competency and start making profit.

Also, in order to boost its existing dedicated terminal business, the company is adding a few more terminals to its current 11 ones. The new locations include Rotterdam, Netherlands that is scheduled to open during the 2nd half of this year and also Algeciras, Spain. Hanjin Shipping will continue to secure more dedicated terminals in major logistics hubs around the globe.

In addition, Hanjin Shipping will be opening its first ship repair yard in China during the 2nd half of this year. This new ship repair yard will allow the company to have its vessels repaired without delay, which will improve vessel schedule and reduce cost. Furthermore, the company expects it to become a new source of income once it starts repairing other carriersбп vessels as well. 

Meanwhile, based on its long term goal, боVision 2017бп, announced on the companyбпs 30th anniversary last year, Hanjin Shipping will set forth to becoming a global total logistics company earning total sales of KRW 25 trillion, operating profit of KRW 2 trillion and corporate.

Source: Transportweekly