Norwegian car carrier operator Wallenius Wilhelmsen has announced that its subsidiary EUKOR Carriers has renewed a landmark contract with South Korea’s Hyundai Motor and Kia Motors for the expansion of car transportation.
The contract, with a total value of $4.2 billion, was extended from three to five years and EUKOR’s share of Korean exports increased from 40% to 50%.
Lasse Kristoffersen, President and CEO of Wallenius Wilhelmsen, said, “This contract confirms our strong position in Korea and reinforces our long-term relationship with Hyundai Motor Group.”
The agreement, which also includes increased export volumes from China, strengthens EUKOR’s presence in the automotive logistics sector in Asia. EUKOR operates around 67 specialized Pure Car and Truck Carriers (PCTCs) and is a key partner for the export of automobiles from the Korean plants of Hyundai Motor and Kia Motors.
Xavier Leroi, CEO of EUKOR and head of the shipping division of Wallenius Wilhelmsen, emphasized the importance of the contract, calling it “a historic order for EUKOR and Wallenius Wilhelmsen”.
Wallenius Wilhelmsen currently operates around 125 PCTCs on 15 trade routes connecting six continents and is a global leader in ro-ro shipping and vehicle logistics.
Wallenius Wilhelmsen favors building ships in Chinese shipyards and has ordered 14 PCTCs from China Merchants Jinling Shipyard (Nanjing), including eight of the world’s largest 11,700 CEU PCTCs and six 9,300 CEU PCTCs.