Park Ki-hoon, CEO of SM Sangseon, "New US East Coast Route to Open by 2024"

Holding IPO Press Conference
Route Expansion and Business Asset Expansion
General Investor Subscription November 4-5

Park Ki-hoon, CEO of SM Line's Shipping Division, is making a presentation at the IPO press conference on the morning of the 29th.

SM Shipping, which is scheduled to be listed on KOSDAQ next month, announced that it will expand its global market dominance through route expansion and the acquisition of operating assets after the listing.

On the morning of the 29th, Park Ki-hoon, CEO of SM Shipping's maritime division, said at an online IPO press conference, “After the listing, we will focus on acquiring new assets and expanding our service network to become a solid global container shipping company that remains resilient despite external environmental changes."

First, regarding its main route to the Americas, the company plans to open new routes to the U.S. East Coast by 2024. It intends to establish calling routes to major U.S. East Coast ports such as New York, Savannah, and Charleston, where cargo demand is continuously increasing, and deploy new vessels.

At the same time, it will expand terminal-rail intermodal transportation services connecting the U.S. interior to cover the entire North American region. To this end, it plans to strengthen collaboration with Union Pacific, the largest railroad company in the U.S., and Canadian National Railway, the largest railroad company in Canada.

For the Asia route, SM Shipping will enhance route competitiveness based on the ‘K-Alliance,’ which includes domestic liner companies such as HMM, Janggeum Shipping, Heung-A Container Line, and Pan Ocean. By 2024, it plans to expand the Asia route to a total of 13 routes and broaden its network in the Asian market.

The company will also expand its core operating assets. The funds secured through the IPO will be used simultaneously to acquire additional vessels and convert to eco-friendly ships to comply with environmental regulations. To expand and maintain the service network, it plans to order about 23,000 container boxes over the next three years. By operating its fleet centered on company-owned vessels, it aims to reduce external dependence and strengthen cost competitiveness. Depending on market conditions, it plans to optimize its cargo portfolio to respond to profitability expansion.

SM Shipping is a major affiliate of the SM Group and was established in 2016 by acquiring personnel and operating assets from Hanjin Shipping. The container transportation services of SM Shipping's maritime division consist of four routes to the U.S. West Coast and nine routes to Asia. As of this month, it owns a total of 18 container ships.

Through joint operations and slot exchanges with 2M (Maersk·MSC), the world's largest shipping alliance, it reduces operating costs and secures price competitiveness. Major large shippers include domestic companies such as Samsung Electronics and LG Electronics, as well as U.S. companies like GE, Walmart, Dollar Tree, and Harbor Freight.

SM Shipping plans to finalize the public offering price through demand forecasting over two days on the 1st and 2nd of next month, followed by a general investor subscription scheduled for the 4th and 5th of the same month. The listing underwriter is NH Investment & Securities, and the scheduled listing date is the 15th of the same month.

This content was produced with the assistance of AI translation services.