Move is part of the Japanese shipping firm’s regional strategy to expand its automotive business
[SINGAPORE] Japanese shipping firm Mitsui OSK Lines (MOL) has formed a joint venture with port operator PSA Singapore to establish a roll-on roll-off (RoRo) terminal in Singapore.
“(The) strategic partnership will enhance terminal reliability and operational efficiency for MOL’s RoRo service, while securing long-term terminal capacity to support its growing automobile transport demand,” the companies said in a joint statement on Thursday (Jan 29).
The JV is an “important part” of MOL’s regional strategy to expand beyond the businesses of shipping and marine transportation services, and to grow its automotive business, said Jotaro Tamura, MOL senior managing executive officer.
“As South-east Asia’s largest automotive transhipment hub, Singapore is a key gateway connecting Asia to major global markets, offering multiple regional connections and value-added services for vehicles transiting from source to market,” MOL and PSA said.
Nelson Quek, regional CEO of South-east Asia at PSA International, said that the partnership with MOL also strengthens PSA’s role as a key hub and node in global supply chains.
It will do so by further integrating PSA’s automobile terminal into its global network, to facilitate connectivity across the automotive logistics value chain, he added.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
The JV will also strengthen the long-term partnership between the two companies, as they jointly manage the terminal’s operations, MOL and PSA said.
Through the partnership, MOL will leverage its extensive global service network and PSA will contribute its longstanding expertise as a terminal operator.
The JV terminal is currently subject to regulatory approval and is expected to commence operations in the first half of 2026.
Beyond terminal operations, MOL and PSA will further collaborate across the three key areas of operational optimisation, digital innovation and sustainability leadership.
“These efforts are aligned with PSA’s vision of connecting its nodes into a synchronised network that can adapt to evolving trade patterns, as well as MOL’s management plan ‘Blue Action 2035’, which aims to strengthen its global market position and drive sustainable business growth,” the companies said.
PSA operates the world’s largest container transhipment hub in Singapore.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
