$ 3 b worth ONE put to sea

Wednesday, 4 April 2018 00:00 - - {{hitsCtrl.values.hits}}

Japanese trio Kawasaki Kisen Kaisha, Mitsui O.S.K. Lines, and Nippon Yusen Kabushiki Kaisha have completed the investment payment into their new joint venture shipping business Ocean Network Express (ONE).

The investment worth $ 3 billion was paid all in cash on 2 April, according to a joint press release on the matter.

“Assets intended as in-kind contributions will be transferred at market value in the future,” the release said.

The joint venture, established in July 2017 in Singapore, commenced service on 1 April 2018.

“The start of services marked a momentous day that will open a new chapter in the history of MOL, as well as Japan’s marine transport industry as a whole.

“Even under time pressure, our executives and employees in each division devoted every effort to lay the groundwork for the integration of the containership business. Above all, I’d like to extend my sincerest gratitude to them for their cooperation and hard work in this respect,” said MOL President and CEO Junichiro Ikeda.

K Line and MOL each hold 31% stake in the JV, while NYK participates with 38% share.

ONE has about 230 vessels in its fleet totaling 1.44 million TEUs, making it the world’s sixth-largest container shipping line.

The network includes a total of 85 services, calling at over 200 ports in 100 countries.

Last week the US ports of Oakland expressed its readiness to receive first calls from ONE, adding the merger would not cause any interruptions to its operations.