ONE and Evergreen Enhance Port Operations with Strategic Investments in Asia
Carriers are making investments to enhance port operations and ensure capacity. Ocean Network Express (ONE) and Evergreen recently announced steps to strengthen their presence in Asia.
ONE invested in Indonesia's President”>Jakarta, Indonesia’s New Priok Container Terminal (NPCT1), acquiring a minority stake. Jakarta is a key port in Southeast Asia and serves all major carriers. NPCT1 is ONE’s third-largest port by volume in the region. Built in 2016, it can handle 1.5 million TEU annually and accommodate large containerships due to its deep drafts of 16 meters (52.5 feet) and modern equipment.
Hiroki Tsujii, Global Chief Officer of ONE’s Product & Network Division, stated, “This acquisition strengthens ONE’s presence in the regional supply chain and ensures access to terminal capacity in this important region.” He noted NPCT1 is efficient and environmentally friendly.
This latest investment continues ONE’s strategy. Last year, ONE acquired stakes in terminals on the U.S. West Coast and in Europe.
How dose Hiroki Tsujii view the competitive dynamics in Southeast Asia’s shipping market and the role of collaborations in enhancing operational efficiency?
Interview with Hiroki Tsujii, Global Chief Officer, Ocean Network Express (ONE)
NewsDirectory3: Thank you for joining us today, Hiroki. Ocean Network Express has made significant investments recently, notably in the New Priok Container Terminal in Jakarta. Can you elaborate on the motivation behind this acquisition?
Hiroki Tsujii: Thank you for having me. Our investment in the New Priok Container Terminal (NPCT1) is a strategic move to enhance our operational capacity in a crucial market. Jakarta is a key port in Southeast Asia, serving all major carriers, which makes it integral to our regional supply chain.By acquiring a minority stake in NPCT1, we not only ensure access to terminal capacity but also strengthen our service offerings in the area.
NewsDirectory3: NPCT1 is already a modern facility capable of handling 1.5 million TEU annually. How does this facility align with ONE’s sustainability goals?
Hiroki Tsujii: NPCT1 was built in 2016 with efficient and environmentally friendly technologies. This aligns perfectly with our commitment to sustainability. We recognize the importance of operating in facilities that minimize environmental impact while maximizing efficiency. As we expand our operations, maintaining environmentally responsible practices is critical.
NewsDirectory3: Beyond this recent acquisition,ONE has made prior significant investments in North America and Europe. Is this part of a broader strategy?
Hiroki Tsujii: Absolutely. Our investments across different regions reflect a comprehensive strategy to bolster our operational infrastructure globally. By acquiring stakes in strategic terminals on the U.S. west Coast and in Europe, we are ensuring that we can meet customer demands and future growth while enhancing our global network efficiency.
NewsDirectory3: Along with ONE, Evergreen has also been active in the region, forming a joint venture with PSA Singapore. How do you view competitive dynamics in southeast Asia’s port operations?
Hiroki Tsujii: The competitive landscape in Southeast Asia is evolving.partners like PSA Singapore play a crucial role in improving operational efficiency across the board. Collaborations and joint ventures, such as Evergreen’s with PSA, indicate a trend toward leveraging strengths to improve service offerings. This healthy competition and collaboration can ultimately drive better service for customers and ensure that ports can handle increasing shipping demands.
NewsDirectory3: What’s the outlook for ONE in terms of future investments in ports and terminals?
Hiroki Tsujii: We remain committed to identifying opportunities where we can enhance our network and service capabilities. Our focus will be on strategic investments that allow us to better serve our customers and sustain long-term growth. As the shipping industry continues to evolve, we will adapt and invest accordingly, ensuring that we stay ahead in terms of operational capacity and technological advancement.
NewsDirectory3: Thank you for your insights, Hiroki. We look forward to seeing how ONE continues to grow and adapt in the competitive shipping landscape.
Hiroki Tsujii: Thank you! It’s an exciting time for us and the industry as a whole,and I appreciate the chance to share our perspective.
Evergreen has established a joint venture with PSA Singapore. This partnership aims to improve operational efficiency in container operations. The companies plan to commence the joint venture by the end of the year. Evergreen says this collaboration will provide long-term capacity assurance and support the growth of its fleet.
This joint venture marks Evergreen’s first terminal partnership with PSA. The companies look to expand their collaboration into more regions.