COSCO Pacific moves to Nansha

COSCO Pacific moves to Nansha

   COSCO Pacific Ltd. said Wednesday it is selling a 17.5-percent stake in Shekou Container Terminals Ltd. in the port of Shenzhen, South China, for HK$610 million ($78 million) and will channel new investment to the neighboring port of Nansha.

   The buyer of COSCO Pacific’s share in Shekou is China Merchant Holdings (International) Co. Ltd., China’s fast-growing port and container manufacturing company.

   COSCO Pacific, part of the China Ocean Shipping Co. group, said the disposal was part of a change in its strategy for the Pearl River Delta ports. Under this revised strategy, COSCO Pacific and Guangzhou Port Group Co., Ltd. are planning to set up a joint venture company to operate a container terminal in the port of Nansha, a new port, downriver from Guangzhou on the western side of the Pearl River Delta. COSCO Pacific said it will have a controlling stake in Nansha Port Phase II.

   “Negotiation with Guangzhou Port Group Co. Ltd. is at the final stage and the contract is expected to be signed shortly,” the Chinese terminal operator said.

   Nansha Phase II Terminal would have six deepwater berths, with a quay length of 2,100 meters (6,900 feet), and a water depth alongside of 14.5 meters (48 feet). Its annual handling capacity will be up to 4.2 million TEUs and the terminal is expected to be operational in 2006.

   The little-know port of Nansha started its container operations last year.

   “As the only deepwater port in Guangzhou City, Nansha is capable of serving the fifth and the sixth generation container vessels,” COSCO Pacific asserted.

   The company said it decided to sell its stake in Shekou Terminal because this facility’s remaining duration of operation is 14 years.