[ HMM Privately Owned Container Flat Cars in Korea ]

Hyundai Merchant Marine Co., is planning to directly invest in the pr
oduction of its own rail flat cars in Korea by the end of 1996.
To date all rail flat cars in Korea are owned and operated by the Kore
an National Railroad Administration. By producing and operating their
own rail cars, HMM will be able to offer its customers a combined tra
nsport system which will enable them to carry cargo in a more efficien
t, timely and safe manner.
It is anticipated that the consequent improvement in service quality a
nd customer’s satisfaction should allow HMM to expand its share of th
e Korean market.
Another advantage of the plan is a reduction in rail costs. Currently
HMM enjoys a volume discount of between 9~22 percent for all container
s moved on National Railroad Administration flat cars. By using its ow
n private flat cars HMM’s discount rate will rise to approximately 31
percent for all containers, HMM’s official said.
This project is another significant step in HMM’s progress towards be
coming one of the best 5 shipping companies in the world.