German box carrier Hamburg Sud has confirmed the purchase of the liner operations run by Italian company Costa Container Lines (CCL) - its 11th such acquisition in the past decade.
Hamburg Sud will buy CCL's services, which generated a turnover of US$647 million from carrying some 360,000 TEUs in 2006, mainly linking Mediterranean and South American markets.
The Hamburg-based north-south trade specialist will take over the CCL container fleet and will charter in CCL and GF Group-owned containerships.
GF is a holding company for various Orsero-family interests who bought CCL from the Costa family in 1990. The acquisition will boost Hamburg Sud's fleet by 10 CCL and GF-owned vessels and another 20 chartered ships mainly ranging from around 1,000 TEUs to 2,100 TEUs.
Five boxship newbuildings - three of 2,800 TEUs and two of 1,730 TEUs - are also under order for CCL from Poland's Stocznia Szczecinska with deliveries set for 2008.
The takeover will require some reorganisation of two major joint services on the Mediterranean-to-East Coast South America trade, as Hamburg Sud and CCL currently operate in rival vessel-sharing arrangements.
Hamburg Sud said it will assume control of CCL's organisation including its land-based staff in Italy, agency subsidiaries in Europe, Central and South America, as well as all customer contracts, ship charters, leasing, terminal and agency agreements.
The takeover is expected to take effect from 1 December.
GF Group will maintain its presence in the shipping sector through chartering out vessels owned by CCL and other group companies and the operation of conventional reefer ships complementing GF's core activities in the international fruit trade. It will also strengthen its activity as a port-service provider.
Hamburg Sud's acquisition of the CCL business is its 11th such deal in the past 10 years, as it has built up a global north-south trade network.
Acquisitions by the German group since 1998 include those of Alianca from Brazilian owners, US-South America trades run by Crowley American Transport, the Transroll Europe-South America service, Ellerman Line services between Europe and the Middle East operated by Andrew Weir, Taiwanese line Kien Hung's mainly intra-Asian activities and Far Eastern Shipping Co (Fesco)'s Australia and New Zealand-related services, as well as a number of Pacific-related lines.
Many of the brand names acquired have been dropped but Hamburg Sud said it would retain the Costa Container brands.
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