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MOL to buy P&O Nedlloyd’s Europe/South Africa operations

MOL to buy P&O Nedlloyd’s Europe/South Africa operations

   Mitsui O.S.K. Lines Ltd. will make its entry into the Europe/South Africa trade after the Japanese carrier reached agreement with A.P. Moller-Maersk to acquire P&O Nedlloyd’s operations in the route. No financial details were disclosed.

   The European Commission made it a condition of A.P. Moller-Maersk’s recent takeover of P&O Nedlloyd that the new operation sell off P&O Nedlloyd’s Europe/South Africa liner interests, as well as withdrawing from certain European conferences and consortia.

   Under terms of the transaction, MOL will acquire P&O Nedlloyd’s rights to operate three ships under a cooperative agreement with Maersk Sealand, Safmarine Container Lines, and Deutsche Afrika Linie, collectively known as the South Africa Europe Container Service (SAECS) members. Pending necessary regulatory approval, the transaction will take effect Feb. 1.

   “The participation in this trade is in line with MOL’s strategy to expand further its global liner operations. This acquisition will strengthen MOL’s presence and enhance its competitive position in the African continent,” MOL said in a statement.

   The weekly SAECS Core service uses six ships of about 5,000 TEUs and calls at Rotterdam, Tilbury, Bremerhaven, Las Palmas, Cape Town, Port Elizabeth, Durban, Cape town, Las Palmas and back to Rotterdam.

   The fortnightly SAECS Intermediate loop uses four vessels of about 1,700 TEUs calling Bristol, Antwerp, Bremerhaven, Lisbon, East London, Durban, Port Elizabeth, East London, Port Elizabeth, Cape Town, Lisbon and Bristol.