SM Line Corporation targets over USD830 million in revenue by 2018

With just three months to go before launching operations, SM Line Corporation has set lofty objectives.

The company, which is taking over Hanjin Shipping’s Asia-US and intra-Asia networks, is aiming for revenue of KRW1 trillion (USD835 million) by the end of 2018.

Within the next five years, SM Line Corporation wants to raise the revenue to KRW3 trillion, its CEO Kim Chil-bong said at a press conference on Tuesday.

“By 2018, we will be operating 21 ships on 12 routes. In the next five years, we will have 41 ships on 25 routes,” said Kim.

SM Line Corporation recently acquired a 4,300 teu ship and another of 1,000 teu. In the first half of 2017, the company expects to have 12 vessels, including some of 6,500 teu. It is reportedly in talks to buy Stadt Coburg.

“We should ensure the survival of the business to contribute to economic development by providing optimal container shipping services as the foundations of free and dynamic international trade,” Kim added.

“If we are to survive the unstable operating environment, both internally and externally, we’ll shed the clothes of the all-too-familiar large corporations and do business according to our conscience. We have to look at what is ahead and work our way through.”

Samra Midas (SM) Group, the parent of Korea Line Corporation (KLC), won an open tender to buy the Asia-US and intra-Asia networks of Hanjin Shipping, which went into receivership on 1 September 2016 after accumulating more than USD5 billion in debt and losing its banks’ support.

Primarily a construction business, SM Group ventured into shipping in late 2013 through acquiring KLC, South Korea’s second-largest dry bulk carrier operator, which it took out of receivership. Kim is also the CEO of KLC.

The group’s board voted overwhelmingly against the acquisition of Hanjin Shipping’s Asia-US and intra-Asia networks at an extraordinary general meeting on 3 January. Directors feared KLC’s lack of expertise in container shipping could affect the overall bottom line.

SM Line Corporation will therefore commence operations as an entity constituted separately from SM Group. The company is now occupying Hanjin Shipping’s office in the financial district of Yeouido in Seoul.

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