PSA Corporation and South Korea’s HMM Co have formed a joint venture in Singapore to enhance operational excellence and efficiency in container operations.

The joint venture company, HMM-PSA Singapore Terminal, is scheduled to commence operations before the end of 2020, subject to regulatory approvals.

Through their respective subsidiaries, PSA will hold a 58% stake in the joint venture, while HMM will own the remaining 42%.

PSA Singapore, via a statement, says that the strategic partnership will offer long-term hubbing certainty to HMM’s fast expanding global vessel fleet in PSA Singapore.

Both companies will also collaborate in operational technology developments and innovations.

“We are honoured to join forces with HMM, one of the world’s top ocean carriers and a globally integrated logistics company, to maximise operational synergies and address the rapidly changing landscape of the shipping industry,” says Ong Kim Pong, regional CEO of Southeast Asia at PSA International.

“PSA and HMM have had a steadfast and long-standing working relationship and we are excited to take this partnership to the next level, achieving a strategic win-win for both parties,” Ong adds.

“We believe this joint venture terminal in Singapore plays a significant role as a springboard for both parties to move forward to a new phase. In addition, HMM looks forward to creating greater synergy for our 24,000 TEU vessels by securing berth on arrival and providing more reliable services for our customers through the joint venture,” says Jae-hoon Bae, HMM’s president & CEO.