Nippon Yusen Kaisha (NYK), Mitsui O.S.K. Lines (MOL) and Kawasaki Kisen Kaisha (K Line) have announced that their new joint venture will operate under the name Ocean Network Express.  NYK, MOL and K Line will hold 38%, 31% and 31% stakes respectively in the new ¥300bn ($2.7bn) joint venture.  The joint venture will integrate the three companies’ container shipping businesses — including worldwide terminal operation businesses, excluding those in Japan.

The establishment of the new joint venture will be officially announced once all anti-trust reviews are completed. The service commencement date for Ocean Network Express is April 1, 2018.  The new entity will control a fleet of 1.4m TEU, or about 7% of the world’s total capacity, ranking it sixth among the global liner shipping operators.  The current plans are to establish a holding company in Japan, with an operating company to be incorporated in Singapore.

In addition, regional headquarters of the operating company will be set up in Singapore, Hong Kong, the UK, US and Brazil.  “The move will allow Ocean Network Express to better meet customers’ needs by providing high-quality, competitive services through the consolidation and enhancement of the three companies’ global network and service structures,” NYK said in a statement.