Glovis, the Korean logistics provider and Hyundai-Kia affiliate, is reported to be planning vehicle exports for its partner of 20% next year and up to 50% by 2015. It will begin shipments next month with the movement of 4,000 Hyundai and Kia vehicles for overseas markets.
The company is investing in three vessels for delivery on July 1 – two second-hand ships with a capacity of 4,000 vehicles and one vessel of second hand ship with a capacity of 6,000 cars. It has further plans to buy two more second hand by the end of the year by which time it also plans to place new build orders.
Eukor Car Carriers, in which Hyundai-Kia has a 20% stake, has handled overseas shipments for the brands since 2002 when it bought Hyundai Merchant Marine’s car carrier division.
Eukor would not comment on the Glovis reports but spokesman Espen Hofland confirmed the company’s plans to hold its majority with Hyundai and Kia.
“In April last year, we extended our contract with Hyundai-Kia until 2016, in which period we will still have the majority of the volumes. There is no change in that respect and that is what we focus on,” he told Automotive Logistics.
South Korea is shortly expected to remove a regulation prohibiting a company’s use of an affiliate for its own shipping.
Elsewhere, Eukor has sold its 50% stake in the Wallhamn car terminal in Sweden to Grimaldi Lines, giving the Italian shipping firm 100% ownership.
Eukor and Wallhamn have simultaneously entered into a long-term terminal agreement.
The Port of Wallhamn is used primarily for import/export of new cars and industrial vehicles as well as ro-ro and project cargo. In 2008 throughput was 125,000 cars, 8,500 ro-ro units, 6,000 containers.
Services provided at the port of Wallhamn do include a pre-delivery-inspection services for vehicles as well as body shop works for commercial vehicles where tailor-made service cars are manufactured according to customer requirements.
“We have decided to exit our partly ownership in Wallhamn as port to port shipping is Eukor core business,” said Hofland.