COSCO Wins Shanghai Port Stake
COSCO Shipping has bought a stake in Shanghai International Port Group (SIPG), which operates the world’s busiest port, as well as a stake in Valencia container terminal in Spain.
Its 15% share in SIPG, valued at US£0.5 billion, gives it a stake in the exclusive operator of all the public terminals in the Port of Shanghai. Shanghai Port was the container port with the world’s highest throughput in 2015, according to Lloyd’s List. COSCO’s latest move gives it the chance to expand its business on East-West routes.
Partnering with port companies will sharpen the competitiveness of its shipping and terminal businesses and advance China’s “One Belt, One Road” policy, it said. It will use the purchase to improve its terminal operation ability, cooperate with SIPG, boost competitiveness abroad, and build safer and more efficient logistics routes. Separately, COSCO Shipping acquired a controlling 51% stake in Spanish institutionally-controlled company, Noatum Port Holdings for £225 million.
COSCO has the option to buy the remaining 49% later. Noatum Port Holdings’ main assets include two container terminal companies, Noatum Container Terminal Valencia (NCTV) and Noatum Container Terminal Bilbao (NCTB), as well as two railway station companies: Conterail Madrid and NRTZ Zaragoza. NRTZ Zaragoza is one of the largest railway logistics centres in the Iberian Peninsula, and a multimodal intermodal railway hub in the Spanish public railway network.
The transaction excludes another Noatum company, Noatum Maritime, the core activity of which includes automotive and multi-purpose port operations and terminals, including the vehicle and bulk terminals of Santander, Sagunto, Malaga and Barcelona.
COSCO is also actively expanding elsewhere in Europe.
A cooperation memorandum on increasing Chinese volumes has been signed in Greece by Chinese officials and COSCO on behalf of its company Piraeus Port Authority (OLP).
- ^ Technical Paper: The Chinese Port System: Competition and Cooperation (www.porttechnology.org)
- ^ Carriers (www.porttechnology.org)
- ^ Container Handling (www.porttechnology.org)
- ^ Container Weighing (www.porttechnology.org)
- ^ Containers (www.porttechnology.org)
- ^ Port Governance (www.porttechnology.org)
- ^ Port Planning (www.porttechnology.org)
- ^ Ports (www.porttechnology.org)
- ^ Shipping (www.porttechnology.org)