The subsidiary of a major port operator plans to acquire a stake of Guangxi Beibu Gulf Terminal in China.
COSCO Shipping Ports Limited subsidiary China Shipping Terminal Development (CSTD) has proposed to acquire a 26% equity interest in Guangxi Beibu Gulf Terminal. It plans to inject its entire 40% equity interest in Guangxi Qinzhou Terminal into Guangxi Beibu Gulf Terminal, plus a cash consideration of around $71.9m.
“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 the Company’s leading position in the Greater China Region, which is in line with the Company’s strategy of enhancing control over terminal assets,” said COSCO Shipping Ports.
It added “Guangxi Beibu Gulf Terminal will benefit from the promotion and implementation of the “Western New Land and Marine Routes” strategy of the PRC, and is expected to share the benefits of economic growth and industrial development in Southwest China and Southeast Asia.”
Qinzhou Port operations
Guangxi Beibu Gulf Terminal manages and operates berths 3 to 6 of the container terminal at the Dalanping South Operation Area of Qinzhou Port.
Guangxi Qinzhou Terminal manages and operates berths 1 and 2 of the container terminal at the Dalanping South Operation Area of Qinzhou Port.
Guangxi Qinzhou International Container Terminal is owned by Beibu Gulf Port Qinzhou and CSTD, 60% and 40% respectively.