WHL-PIL Strategic Alliance in Formation
20 Feb 2008

The formation of alliance in the shipping industry, such as The Grand Alliance, New World Alliance, and CKYH, has been a strategy and trend for carriers to rationalize and work together for long-term development and mutual benefit.

Recently, Wan Hai Lines Limited (WHL) and Pacific International Lines (PIL) have also established their own alliance. The cooperation of the two companies started in 2004 with the joint deployment of the FarEast Europe service. In 2007, the two carriers advanced further with the launching of the Transpacific joint service in March, followed by their Black Sea common service in December.

Their growing cooperation in both the East-West trade lanes in 2007 is another testament of the close and well-established partnership relationship between them. As both carriers share the same vision and persistence in providing customers with premium liner service product, it is inevitable for both companies to consider further collaboration by pooling their unique resources and strengths to improve their competitive advantage in the dynamic shipping industry.

With long term partnership in mind, WHL and PIL had recently concluded a Memorandum of Understanding (MOU) to set forth the intention of both Parties to enter into a 10-year Strategic Alliance Agreement. The essence of this alliance includes current areas of cooperation and future service development plans. In conjunction with this, both carriers had also expressed their intention to explore joint efforts in shipbuilding, repair yard and terminal cooperation.

WHL and PIL have both obtained extraordinary shipping experiences over 40 years of establishment, and have received tremendous support from clients due to their well recognized management skills. In recent years, their services have expanded worldwide by connecting their comprehensive Asia network with Europe and America. With the signing of the MOU for Strategic Alliance between them, both Partners believe their partnership will continue to grow to benefit their shareholders, employees and their shippers.