Hanjin to sell 49pc of its terminal operations company

KOREA's Hanjin Shipping plans to sell 49 per cent of its Busan-based terminal operator to raise working capital after suffering a first-quarter loss of KRW135 billion (US$107.9 million).

Hanjin, Korea's biggest container shipping line, also announced that it expects to raise KRW200 billion by selling the stake in Hanjin New Port Co, which runs its Busan terminal.

Hanjin will retain 51 per cent and expects to raise the money through the sale of 10.9 million new shares next month, it said.

"The company needs to take every step possible to cut costs," Um Kyung A, an analyst at Shinyoung Securities, told Bloomberg. "Losses during the recession were heavy."

During the first quarter, Hanjin moved 817,639 TEU, 30 per cent more year on year, the company said in the statement. Operating profit totalled KWR2.5 billion as gains from bulk-shipping offset the US$8 million operating loss from containers drawn on revenues of $1.54 billion.

(Source: Sea Trade Asia on line)