Singapore operator expected to secure 50pc stake in third phase of mainland terminal's 4b yuan expansion project
Dalian Port (PDA), the eighth-largest port operator on the mainland, will probably sell as much as 50 per cent of the third phase of its expansion project to Singapore's PSA International, according to industry sources.
Although the third-phase expansion was still subject to government approval, sources said PSA was 'highly likely' to secure the stake because of the close relationship between the two companies.
A spokesman from Dalian Port declined to comment.
'PSA is involved in every single container terminal project in Dalian,' an analyst said.
The port operator gained its first foothold on the mainland in 1996 when it formed a joint venture, Dalian Container Terminal, with Dalian Port's parent, Dalian Port Authority.
The joint venture, in which PSA holds a 49 per cent stake, was granted the right of first refusal on the development of container terminals in the city, according to Dalian Port's listing prospectus. That means Dalian Port is obliged to make an offer to Dalian Container Terminal for any potential port projects in the city.