- Acquires a secondhand PCTC, expanding its long-term charter fleet to two vessels- Five-year-and-four-month contract lays foundation for PCTC business expansion
Korea Line Corporation, the shipping arm of SM Group (Chairman Woo Oh-hyun), announced on September 2 that it has signed a long-term time charter contract worth KRW 73 billion with Hyundai Glovis for a Pure Car and Truck Carrier (PCTC).
The contract value represents 5.7% of the company’s consolidated revenue of KRW 1.277 trillion for the previous year. The contract will run for five years and four months, beginning in November. Before the contract commences, Korea Line plans to acquire a secondhand PCTC for deployment under the agreement. This will increase the number of PCTCs chartered to Hyundai Glovis on a long-term basis from one to two.
Korea Line attributed the new contract to its proven ship-management capabilities and the strong relationship of trust it has built with Hyundai Glovis through their PCTC partnership, which has continued since 2015. Under the long-term time charter arrangement, Hyundai Glovis is responsible for the vessel’s commercial operation, while Korea Line manages the vessel and crew. Korea Line’s delivery of high-quality maintenance, repair and operations (MRO) services for more than a decade was recognized as a key strength.
Building on this contract, Korea Line plans to further strengthen its stable business model, centered on long-term agreements with blue-chip customers. The company also expects opportunities to expand its PCTC business, as demand for car carriers has risen sharply amid increasing automobile exports from Asia.
Korea Line also plans to generate new growth momentum by securing additional contracts with major customers, including Korea Gas Corporation, as competition for dedicated liquefied natural gas (LNG) carriers intensifies amid heightened risks to global energy supply chains, including ongoing conflicts in the Middle East.
Sang-ki Min, CEO of Korea Line Corporation, said, “This contract with Hyundai Glovis provides us with a stable new revenue stream while laying the foundation for further expansion of our PCTC business. We will respond swiftly to changing trends and uncertainty in the global shipping market, identify new business opportunities that deliver both stability and profitability, and continue making strategic investments to drive future growth and enhance shareholder value.”
