The new multipurpose terminal in Qingdao’s Dongjiakou Port, which will primarily handle grain and other general cargo, represents the global marine terminal operator’s first foray into a non-container handling facility in China.
APM Terminals, part of the Danish shipping conglomerate A.P. Møller-Maersk Group, has secured a 20 percent share in a new multipurpose marine cargo terminal at Dongjiakou Port in Qingdao, China, the company said in a statement.
The newly developed Dongjiakou multipurpose facility, which will primarily handle grain and other general cargo, represents the global port terminal operator’s first foray into a non-container handling facility in China. The Port of Qingdao handled around 7 million metric tons of grain cargoes in 2014, and continues to see strong growth in 2015, according to APMT.
Qingdao Port Dongjiakou Multi-Purpose Terminal is located on the Yellow sea in the Shandong province on China’s Bohai Rim. APMT will operate the facility in conjunction with Qingdao Port International.
The Port of Qingdao ranks seventh in the world in terms of annual volumes, moving a total of 468 million metric tons of cargo in 2014. Qingdao’s new Dongjiakou Port, which has a projected annual throughput of more than 300 million metric tons, is “set to become a national hub of Chinese bulk and energy cargos,” said APMT.
China imported 63.4 million metric tons of soybeans and 14 million metric tons of corn, wheat and rice in 2013, according to APMT. Soybean imports, primarily from the U.S. and Brazil, represent more than 80 percent of Chinese annual domestic demand.
APM Terminals has interests in nine terminals across six ports in China, including five container terminals in the Qianwan section of Qingdao Port, and an additional facility currently in development at the Port of Ningbo.
The company also operates grain handling facilities in Callao, Peru, and Poti, Georgia.
“China, as the world’s largest population, and second–largest economy, is a crucial center of global trade and logistics, and we are very pleased to advance our multi-port strategy of growth beyond containers in this exciting and fast-growing market,” APM Terminals CEO Kim Fejfer said of the new acquisition.
“We are fully prepared to grow with the grain market in China, and around the world,” he said, pointing to a Thomson Reuters report released in March 2015 that indicates approximately one third of all nations are now importing at least a quarter of their grain consumption. “Global dependence on food imports leaves countries vulnerable.”
“Worldwide seaborne grain shipments have increased to over 400 million tons annually according to the World Grain Council, requiring a specialized infrastructure and expertise to keep up with this demand, while helping to improve the quality of life for millions of people around the world,” added APMT’s VP of Business Development Francois Delenclos, who negotiated the deal. “This is a high-growth market where APM Terminals can invest and deploy its operational expertise in key locations.”
APMT secures 20% stake in Qingdao multipurpose terminal
