[Asia Economy Reporter Dongwoo Lee] SM Line is actively working on its listing within the year to become a global shipping company.
According to the shipping industry on the 20th, SM Line is expected to accelerate its initial public offering (IPO) after the Chuseok holiday. In July, SM Line submitted a preliminary listing review application to the Korea Exchange and is currently proceeding with the IPO process.
The securities industry anticipates the company's corporate value to be around 3 trillion KRW. SM Line's operating profit in the shipping sector for the second quarter of this year reached 172.9 billion KRW, marking the highest since SM Group's acquisition in 2016, thereby improving profitability.
The company plans to expand its scope after listing by extending routes, increasing container capacity, purchasing used vessels, considering new ship orders, and establishing a digital logistics system.
In particular, to strengthen its main route, the trans-Pacific route, the company aims to expand its Asian regional network by participating in the K-Alliance. To this end, in May, SM Line named a Panamax used container ship recently acquired for fleet reinforcement as the SM Portland and departed from Busan New Port to Vancouver, Canada.
The SM Portland is expected to be deployed to strengthen the trans-Pacific West Coast route centered on the Port of Portland in the U.S. Northwest. Previously, in 2019, the company added Portland to its northern trans-Pacific West Coast service ports alongside Vancouver and Seattle to enhance logistics services in the U.S. Northwest. Early last year, it successfully made its first call at the Port of Portland, aiming to improve profitability by creating new business demand.
SM Line plans to expand its fleet capacity through new ship orders and used ship purchases to extend routes from the trans-Pacific West Coast to the East Coast of the Americas. According to the French shipping research firm Alphaliner, SM Line's fleet capacity totals 70,594 TEU, ranking 23rd among global shipping companies.
Building a digital logistics system is also a key task. SM Line is sharing technology and data with various stakeholders in the shipping and logistics industries and is working to enhance its digital technology competitiveness.
Earlier, SM Group Chairman Oh Woohyun stated, "It is encouraging that SM Line is emerging as the flagship affiliate of the group's shipping division," adding, "We will continue to support South Korean export companies and strive to firmly establish our position in the global shipping market."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
