Port operator COSCO plans to buy container terminal in China
Port operator COSCO Shipping Ports Limited has announced plans to purchase a container terminal in China at the Guangxi Beibu Gulf Terminal.
China Shipping Terminal Development (CSTD), a COSCO Shipping Ports subsidiary, has proposed entering into a capital increase contract.
Under the arrangement, by inserting its entire 40 percent equity interest in Guangxi Qinzhou Terminal into the above-mentioned container terminal and a cash consideration of RMB 486.8 million (around $71.9 million), CSTD will consent to subscribe to the 26 percent equity interest in Guangxi Beibu Gulf Terminal.
The agreement for the capital increase is subject to the appropriate approvals.
Guangxi Qinzhou Terminal holds 60 per cent and 40 per cent respectively of Beibu Gulf Port Qinzhou and CSTD. The organization manages and operates container terminal numbered 1 and 2 berths at Qinzhou Port's Dalanping South Operation Area in Guangxi, the PRC, and offers associated services.
“The proposed investment in Guangxi Beibu Gulf Terminal will be a meaningful step in realising the company’s strategy of creating greater value and also strengthening … position in the Greater China Region, which is in line with the company’s strategy of enhancing control over terminal assets,” COSCO Shipping Ports announced in a statement.
Guangxi Beibu Gulf Terminal manages and operates container terminal berths numbered 3 to 6 at Qinzhou Port's Dalanping South Operation Area and provides associated services.
Maritime Business World