MOL breaks into China’s towage market
Hong Kong-based South China Towing, a company 25-percent owned by Mitsui O.S.K. Lines, has formed a joint venture tugboat company with the port authority of Fangcheng, a Chinese mainland port. Mitsui O.S.K. said it is the first harbor towing company in China to include non-Chinese participation.
The company, Beibu Gulf Towing Co., began operations with three tugs on Jan. 1.
Fangcheng port, situated at the head of the gulf of Tongking, southwest China, is the largest port in Guangxi province. South China Towing is the second largest tug operator in Hong Kong. Besides its ownership participation by Mitsui O.S.K., it is also part-owned by Tokyo Kisen Co. Ltd., one of the largest tug operators in Japan.
The new company is “committing its management expertise and resources in partnership with Fangcheng port authority to provide towing services in Fangcheng port and neighboring ports in the Beibu gulf,” Mitsui O.S.K. said.
Fangcheng port is poised to play a significant role in the development of China’s southwestern region, providing a major gateway for the provinces of Guizhou, Sichuan, Yunnan , Guangdong, and Hainan, Mitsui O.S.K. said.
