SOUTH KOREAN transportation company Hanjin Shipping says it set up a joint venture company in Colombo, Sri Lanka at the start of this month with Navigation Maritime Colombo (PVT) Ltd.
Hanjin has worked with its joint venture partner since 1995, a company statement explained, adding it has invested about US$250,000 to take a 40 per cent stake in the joint venture company, which is the most foreign companies are allowed to invest under Sri Lankan law.
Currently, Hanjin Shipping provides two Europe services, one Middle East service, and one dedicated Sea of Arabia feeder service calling at Colombo, which along with Mumbai, Navasheva and Karachi is one of the major calling and transshipment ports in the Bay of Bengal region.
Hanjin believes that by establishing a locally-based company in Colombo it will stay ahead of the competition in the Bay of Bengal region that encompasses India, Pakistan, Bangladesh and Sri Lanka and become "more profitable with enhanced sales and logistics operation", the statement said.
This development also falls in line with plans to "continue to expand its direct sales network in Europe and Asia where improved business competency and customer service will be needed to handle the growing volume in the future", the company added.