Sources inform ''Globes'' that South Korea’s Hanjin Shipping Co. Ltd. (KSX:00700) is negotiating to initiate activity in Israel. Hanjin Shipping is the world’s eighth largest shipping company, specializing in containers, as well as operating a fleet of liquefied natural gas, oil, and chemicals carriers.
Six months ago, Sammy Ofer, the controlling shareholder in Israel Corp. (TASE: ILCO) and its subsidiary Zim Integrated Shipping Services Ltd., increased his stake in Hanjin Shipping to 12.8% from 8%, which raised speculation that he was attempting a takeover of the company. It is not yet clear if Hanjin Shipping’s decision to launch activity in Israel is related to Ofer's increase in his holdings.
"Globes" has also learned that Hanjin Shipping is already looking for an agent to represent it in Israel on a full-time basis. Senior sources in the shipping sector said that among the companies that could serve as local agents for Hanjin are Flying Cargo, Transclal Trade Ltd., and A. Rosenfeld Shipping Ltd.
Last year several of the Far East's leading shipping companies, among them China Shipping and Cosco Group from China and South Korea's Yang Ming Marine Transport Corp., resumed business at Israel's ports, against the backdrop of an increase in trade with the Far East. The entry of yet another shipping company is likely to reduce cargo tariffs to the Far East, as a result of the increase in competition.
Published by Globes [online], Israel business news - www.globes.co.il - on April 4, 2007
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