Chief of mainland's top shipping group hails benefits of deal
Senior management from the mainland's biggest shipping group yesterday said APM Terminals would take a stake in the second phase of the Nansha port project, confirming a deal first reported by the South China Morning Post.
China Ocean Shipping (Group) chairman Wei Jiafu said with the participation of APM's sister firm Maersk Sealand, the world's biggest shipping line, the port could secure more cargo and services.
'It is very crucial and the benefit is obvious,' Mr Wei said after an industry conference in Shanghai. But he did not reveal the stake size or when the agreement would be signed.
In September, Cosco Holdings subsidiary Cosco Pacific signed a provisional agreement to sell 20 per cent of its stake in the four billion yuan Nansha second phase to APM. Cosco Pacific is the 56 per cent owner of phase two.
The deal will give APM, a wholly owned subsidiary of the giant AP Moller Group, an effective 11.2 per cent interest in the six-berth second phase, a stake that could be worth as much as $430 million, based on the facility's 4.01 billion yuan development cost.
Mr Wei also said the group would be part of Shanghai's mega-port project, Yangshan Phase II. 'Without the support from Cosco Group, Yangshan Port could not achieve the role as the national hub of shipping,' he said. Mr Wei did not provide details of the investment.