Korea Line Corporation, the shipping arm of SM Group, has signed a 73 billion-won long-term time charter contract for a pure car and truck carrier (PCTC) with Hyundai Glovis.
SM Korea Line disclosed the deal the previous days, saying the contract will run for five years and four months, beginning in November.
In accordance with SM Korea Line, the contract value represents 5.7% of the company’s consolidated revenue of 1.277 trillion won for the previous year.
Before the contract commences, Korea Line plans to acquire a secondhand PCTC for deployment under the agreement. This will increase the number of PCTCs chartered to Hyundai Glovis on a long-term basis from one to two.
Under the long-term time charter arrangement, Hyundai Glovis is responsible for the vessel’s commercial operation, while Korea Line manages the vessel and crew.
“This contract with Hyundai Glovis provides us with a stable new revenue stream while laying the foundation for further expansion of our PCTC business,” said Sang-ki Min, chief executive officer of Korea Line Corporation. “We will respond swiftly to changing trends and uncertainty in the global shipping market, identify new business opportunities that deliver both stability and profitability, and continue making strategic investments to drive future growth and enhance shareholder value.”
