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Cosco earmarks US$400m to fund ports expansion

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The group plans to widen its network overseas and in the mainland with emphasis on the Yangtze River Delta

Cosco Pacific will invest US$400 million to expand its port network in China and overseas this year, according to managing director Sun Jiakang.

The expansion plan would include the construction of a feeder terminal in the Yangtze River Delta and a 20 per cent stake the firm would take in six new berths in Dalian, northern China, he said.

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Mr Sun said the blue chip was also looking at acquisition targets overseas, including the United States and northwestern Europe.

'We established our base in China, but overseas operation is also important. The container vessel fleet of our parent company needs to berth at international hubs,' Mr Sun said. 'We have long-term partners overseas and we are looking to enhance the co-operation. Negotiations are going on but it's not yet the time to disclose the details.'

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Cosco's China expansion is in full gear. The firm had long planned for a feeder network in the Yangtze River Delta, with Shanghai as its hub.

Mr Sun said Cosco would close a deal on Wednesday to take 51 per cent of three 10-metre berths in Yangzhou, a city north of the Yangtze River. The local port authority would take the remaining shares.

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