How Hutchison deal could make shipper MSC world's dominant port operator
The world's biggest container shipping line, MSC, is also likely to become the largest port operator across the globe if it succeeds in taking control of 41 facilities from Hong Kong's CK Hutchison Holdings, further reducing the number of firms running terminals, industry experts have said.
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Geneva-based MSC, which is the first container carrier to operate 900 ships, will strengthen its marine dominance by the takeover across 23 countries of 43 ports, including two at the Panama Canal, through its Terminal Investment Limited (TiL) arm in partnership with US investment giant BlackRock.
The deal, announced earlier this year, will see the BlackRock-led consortium take an 80 per cent stake in CK Hutchison's port assets outside its home base. This massive portfolio includes major hubs in Europe, Asia and the Americas.
MSC's earnings, however, were expected to be lower this year as US President Donald Trump's tariffs and ship fee proposals would slash the volume of American shipping lanes by a quarter, analysts said.
'If the deal goes ahead, this will effectively make MSC the world's largest terminal operating company,' Lars Jensen, founder and chief executive of container shipping consultancy Vespucci Maritime, said on Thursday.
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'From a strategic perspective, this will give them a much better opportunity to optimise synergies between their terminal operations and their liner shipping operations, in the process also enhancing the competitive positioning of their liner shipping business globally.'
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