PSA Singapore and Japanese shipping major Mitsui OSK Lines (MOL) have agreed to form a joint venture to run a dedicated roro terminal in the Lion City, tightening their grip on one of Asia’s busiest automotive transhipment hubs.

The terminal, subject to regulatory approval, is expected to begin operations in the first half of this year. It will support MOL’s growing car carrier business while giving PSA a deeper role in vehicle logistics at the port.

Singapore is Southeast Asia’s largest automotive transhipment hub, linking regional production centres with markets in Europe, the Middle East and the Americas. The new venture is aimed at improving service reliability and operational efficiency for MOL’s roro services, while securing long-term terminal capacity as volumes rise, the companies said.

Under the deal, MOL brings its global roro network and automotive customer base, while PSA contributes its terminal operating know-how and port infrastructure. The partners will jointly manage the terminal.

The tie-up goes beyond berth operations. PSA and MOL said they will work together on operational optimisation, digital tools and sustainability initiatives, aligning with PSA’s wider network strategy and MOL’s long-term plan.

Nelson Quek, PSA’s regional CEO for Southeast Asia, said the partnership would strengthen Singapore’s role in global automotive supply chains and deepen PSA’s integration with car carrier customers.

MOL senior managing executive officer Jotaro Tamura said the investment fits the group’s push to expand its automotive logistics business beyond pure shipping, while improving scale, efficiency and environmental performance.