COSCO buys into Shanghai and Spain

File:Container ship COSCO England arriving in the port of Hamburg.jpgCOSCO Shipping, one of China’s largest shipping companies, has announced the acquisition of a stake in the Port of Shanghai, as it seeks to further diversify its conglomeration of business operations.

China COSCO Shipping Corp. Ltd. agreed to take 15% ownership of Shanghai International Port Group Co. Ltd. from Shanghai Tong Sheng Investment Group Co. Ltd for an amount of $0.5 billion.

Shanghai International Port operates the public terminals in the Port of Shanghai, one of the busiest container ports in the world. It handles around 25.7% of international trading volume in China. In 2016, the annual container throughput of Port of Shanghai was recorded at 37 million TEU, up from 36.5 million in 2015.

Container liner services calling at the Port of Shanghai cover all the major ports around the world. More than 2,000 container ships depart from the port every month, en route to North America, Europe, the Mediterranean, Persian Gulf, Red Sea, Black Sea, Africa, Australia, Southeast Asia, Northeast Asia, and other regions.

Separately the company also announced that on 12th June 2017, a wholly-owned subsidiary of the company entered into a sale and purchase agreement with TPIH for the purchase of 51% of the shares of Noatum Port Holdings, S.L.U. (NPH).

Total considerations amounted to €203.49 million. Major assets of NPH include NCTV, NCTB, being two container terminals, Conterail Madrid and NRTZ Zaragoza, two facilitative rail terminals.

The company stated the purchase is in line with its strategies of “developing a global terminals portfolio” and “strengthening control and management of the ports and terminals business”.  

NCTV is the biggest container terminal with stable volume and business in the Port of Valencia. The Port of Valencia is one of the top three container ports in the Mediterranean. The port acts as the main gateway for the Iberian Peninsula and the natural port of Madrid, the capital of Spain. COSCO stated due to its location the port is well situated to act as a West Mediterranean transshipment hub.

NCTB is the sole container terminal in the Port of Bilbao. It is one of the largest and most modernised container terminals of the Atlantic region of Southern Europe. It serves as the ideal gateway for the transportation of containers throughout the Iberian Peninsula and Southwest of France.

Conterail Madrid and NRTZ Zaragoza can help create more efficient logistics chain for operators and shippers, and channel their products through the ports of Valencia and Bilbao. Among the two, NRTZ Zaragoza is located in one of the biggest rail logistic centres of the Iberian Peninsula, and is one of the most important intermodal rail hubs of the Spanish general public rail network.

Image Source:
Hummelhummel (Wikimedia)

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