KOREA's Hyundai Merchant Marine has opened a new US$16 million off dock container yard (ODCY) in Qingdao, China in a joint venture with Shandong Province Communication and Transport Group (SPCT), each with a 50 per cent stake.
On September 3rd, HMM opened a new ODCY (Off Dock Container Yard) in Qingdao, China. The new ODCY is HMM’s first ODCY in China. Previously in 2012, HMM advanced into the Chinese logistics market establishing a distribution joint venture, Shandong Jiaoyun Hyundai Logistics (SJHL), with state-run Shandong Province Communication and Transport Group(SPCT). The ODCY is the first fruit of the joint venture. At the opening ceremony, approximately 100 people attended including HMM President and CEO C.K. Yoo, Mr. Lee Nam-Yong, Head of HMM’s Planning and Administration Unit, and Mr. Kim Gil-Soo, Head of HMM’s Global Logistics Division. Also in attendance were Mr. Wu Zong Chang and Mr. Wang Qian, respectively Chairman and President of SPCT, as well as Mr. Gao Hongtao, Director of Shandong Provincial Department of Communications. President and CEO Yoo remarked during his speech, “The SJHL ODCY will be the leading logistics center in the Province. HMM will actively cooperate with the Shandong Province Communication and Transport Group to develop diverse business opportunities and drive growth.” The SJHL ODCY is built on a 59,274 square-meter site and is capable of handling 350,000 TEUs per year. With the new ODCY consisting of a container yard, container repair facility, and logistics warehouse, HMM will provide customers with loading, unloading, storage, and delivery services through a one-stop service system. A total of USD 15.9 million was invested to build the SJHL ODCY, with HMM and SPCT contributing fifty percent respectively. The SJHL ODCY is expected to achieve profits of USD 6.73 million annually.
