Qingdao operators to form joint venture
Two terminal operating entities that control the nine container terminals in the Port of Qingdao are merging their operations at the Chinese ports, according to a report Sunday in World Cargo News.
China Merchants Holdings International will form a joint venture with Qingdao Qianwan New Container Terminal (QQNCT) called Qingdao Qianwan United Container Terminal, which oversees operations at all nine terminals. Previously China Merchants, one of China's biggest terminal operators, controlled five berths while the QQNCT operated the other four.
Qingdao, located in the Bohai Bay region in northeastern China, saw growth in volume in 2009 despite the global volume downturn, with throughput rising 2.4 percent to 10.2 million TEUs.
China Merchants Chairman Fu Yuning said the joint venture would alleviate competition between the two operators and allow Qingdao to grow into a container hub on the order of Shenzhen or Shanghai. It also gives China Merchants a major foothold in northeastern China, where Qingdao, Dalian and Tianjin are expected to grow faster than port complexes in more cargo-saturated parts of China.
Shareholders in QQNCT's parent company include COSCO Pacific, APM Terminals, and DP World. Both QQNCT and China Merchants will provide nearly $150 million in capital into the new joint venture.