Oversupply of tonnage affects ONE's financial results

Ocean Network Express (ONE), a new entity from three Japanese liner companies ‘K’​ Line, MOL and NYK, becomes majority owner of two terminals on the US West Coast and acquires a 20 percent stake in a terminal in the Port of Rotterdam.

The container giant has obtained all necessary regulatory approvals and completed its acquisition of a 51% stake in each of TraPac and Yusen Terminals, and a 20% stake in Rotterdam World Gateway (RWG).

TraPac and YTI are container terminal operators and vessel stevedores that provide container terminal services in Los Angeles and Oakland, California.

They have a combined capacity of 4.3 million teu annually, and have been serving liners at the Port of Los Angeles since 1987 and 1991.

Rotterdam World Gateway operates an automated container terminal in the Port of Rotterdam with an annual capacity of 2.6 million teu, and as the container giant claims this stake in “RWG gives ONE long-term capacity and strengthens ONE’s position as a key hub in the region.”

Hiroki Tsujii, managing director of ONE’s product and network division, said: “Container terminals are a critical link in the supply chain with the unique ability to cushion the impact of operating disruptions. ONE will leverage these terminals to help customers manage supply chain disruptions and improve service quality. In addition, these assets will enable ONE to deliver faster and more reliable service to our customers.”

These acquisitions are part ONE’s midterm strategy to continuously invest in its operations.

Furthermore, with the completion of these three acquisitions, the company establishes a strong presence in three key strategic locations in the US West Coast (Trapac, YTI), North Europe (RWG), and South East Asia (Magenta Singapore Terminal).