China Merchants eyes Lithuanian port
Lithuanian foothold would create sea link for neighbouring Belarus where China is investing
State-owned conglomerate China Merchants Group is looking to invest in a port in Lithuania as it attempts to extract more growth from overseas footholds.
The Port of Klaipeda, the major seaport in the eastern European country, could serve as a gateway connecting the Baltic Sea to neighbouring landlocked Belarus, where China is investing US$5 billion to build a massive industrial park from scratch, China Merchants chairman Li Jianhong told the South China Morning Post yesterday.
"We are in discussion with local port authorities on detailed investment plans. We've recently bought a 20 per cent stake in the China-Belarus Industrial Park and have also committed to build a 1 sq km commerce and logistics park in the industrial area," Li said after the annual shareholder meeting of the group's port subsidiary China Merchants Holdings (International) (CMHI).
The China-Belarus Industrial Park is 25km from Belarusian capital Minsk and 500km from the Baltic Sea. Chinese firms include Huawei and ZTE have decided to set up plants in the 80 sq km area that will also encompass residential buildings and shopping malls.
Li, a member of President Xi Jinping's delegation during a state visit to Belarus three weeks ago, declined to specify an investment amount, but said the Lithuania move would be in line with CMHI's strategy of expanding footholds around the world.
"The industrial park is longing for better access to export goods and we can help with our expertise in port and logistics operations," Li said.