China players take 60% stake in Asia Container Terminals
Cosco Pacific and CSTD buy into Hutchison Hong Kong port holding company
COSCO Pacific and China Shipping Terminal Development have bought a 60% stake in one of Hong Kong’s main container terminals for a total consideration of HK$2.5bn ($322m).
Cosco Pacific will take 40% and CSTD 20% in Asia Container Terminals, the holding company of Asia Container Terminals, which owns and operates Container Terminal 8 West, from Hutchison Port Holdings Management.
Cosco Pacific vice-chairman and managing director Wang Xingru said: “Further to our existing successful joint venture with HPH Trust at Cosco-HIT’s Terminal 8 East in Hong Kong, I believe that Terminal 8 East and West will form a competitive platform to provide comprehensive and efficient terminal services to our customers.
“Our investment in ACT will enhance our terminal profitability and further strengthen our presence in Hong Kong which is one of the major gateways to South China.”
CSTD managing director Fang Meng said: “We are pleased to team up with HPH Trust and Cosco Pacific in the ACT investment.
“This is CSTD’s first container terminal investment in Hong Kong and it extends our geographic presence along China’s coastal ports.
“The single contiguous 1,380 m berth at Container Terminal 8 will enable us to establish Hong Kong port as a key container shipping hub for the deployment of ultra large containerships, including the 19,000 teu vessels which are scheduled for delivery in November.”
HPH Trust chief executive Gerry Yim said the investment boded well for the terminal, which handled more than 1m teu in 2013.