Hanjin Shipping signs long-term contract with KOSPO

Hanjin Shipping recently announced that it signed a 15-year Consecutive Voyage Contract (CVC) with Korea Southern Power (KOSPO).

According to Hanjin Shipping, two cape-size vessels will be deployed in the transportation of 2.2 million tons of soft coal annually for 15 years where one will start operating in 2012 and the other in 2015.

Total transport volume is estimated to be around 33 million tons creating total revenue of approximately KRW 360 billion. These ships will be transporting soft coal to Korea from various origins including Indonesia, Australia and Canada.

Hanjin Shipping commented, “It is very encouraging that we secured this contract in the midst of current market situation. We are confident that our continuous success in obtaining long term contracts with the world’s major customers will provide firm ground for the growth of our bulk business.”

Meanwhile, Hanjin Shipping is continuing its endeavors to develop new businesses with various partners and make a stronger presence as a major bulk player. Besides signing CVC with Glovis and Hyundai Steel in 2008 and with POSCO in 2009, the company is operating 16 dedicated vessels for POSCO, 12 for KEPCO and 2 for Hyundai Steel.