AS P&O Nedlloyd works towards a probable January 1 finalisation of the group merger, the physical merger within South Africa is likely to be concluded after that date.
In South Africa several complex issues are currently under discussion, John Turner, chairman in SA of Ellerman & Bucknall, agents for P&O, told FTW.
One of these is the question of Mitsui OSK Line, for which E&B are the agents. MOL competes with Nedlloyd on the Far East route.
We are in the early stages of deciding how best to handle the situation, and all parties are anxious to ensure that MOL is well taken care of.
We hope to continue our relationship with them in one form or another, but we will need some restructuring to do that. No announcement on that score is available as yet.
The second issue relates to the SA - Europe Container Service (SAECS) where Nedlloyd's business is managed by Safmarine. It would be strange for that situation to be allowed to continue forever, and a solution will have to be worked out, Turner said.
While details of senior management posts in the merged group were announced in the UK recently (FTW November 1, 1996), until solutions to the complications on the SA route are found, there can be no clarity on the physical changes which will take place.
