Port operator COSCO Shipping Ports has acquired a 4.34 percent stake in China’s Beibu Gulf Port for CNY 470 million (USD 68.5 million).
As informed, COSCO Shipping Ports has subscribed for 70,943,455 shares of Beibu Gulf Port through China Shipping Terminal Development, a subsidiary of the company.
With this move, COSCO Shipping Ports aims to further strengthen the cooperation with Beibu Gulf Port and lay a foundation for the company to participate in the integration of Guangxi ports.
“The subscription of Beibu Gulf Port’s shares further deepened the cooperation between COSCO Shipping Ports and Beibu Gulf Port, prepared for our participation in the integration of Guangxi Ports; the operation and economies of scale of Beibu Gulf Port should thus be further reinforced,” Zhang Wei, Vice Chairman and Managing Director of COSCO Shipping Ports, commented.
“We will continue to seek cooperation opportunities actively to further strengthen our terminal portfolio in Southwest China, and at the same time continue to extend our reach globally to build a global terminal network with controlling stake that offers linkage effects on costs, services and synergies,” Wei added.
At present, COSCO Shipping Ports teams up with Beibu Gulf Port in operating Qinzhou International Container Terminal.
According to COSCO, Beibu Gulf, being the gateway of the New International Land-Sea Trade Corridor (ILSTC), is of strategic significance. Located near South China Economic Circle, Southwest China Economic Zone and ASEAN Economic Circle, Beibu Gulf Port is the main gateway port in Southwestern China and is one of the 20 major coastal hub ports in China.
In addition, trade routes of Beibu Gulf Port cover major ports in ASEAN countries and connect more than 200 ports in over 100 countries and regions.
Total throughput of Beibu Gulf Port achieved for the nine months of 2018 amounted to approximately 13.485 million tons, an increase of 13.68% year-on-year. The container throughput increased significantly by 30.17% year-on-year to approximately 2,186,300 TEUs.