The German government has ratified its decision to grant approval for the acquisition of a 24.9 per cent minority stake in Container Terminal Tollerort (CTT) by COSCO Shipping Ports Limited (CSPL).
Hamburger Hafen und Logistik AG (HHLA) expressed its satisfaction with the recent decision, stating: “All issues within the scope of the investment screening process were clarified jointly in intensive, constructive talks.”
The approval for CSP to take a 24.9 per cent stake in HHLA’s terminal was initially granted by German Chancellor Olaf Scholz in October 2022, despite strong opposition from within the governing coalition.
Just last month, however, the German government declared it was reviewing its previous decision.
The Tollerort terminal, which has been designated as critical infrastructure this year, had triggered concerns regarding the potential risks associated with Chinese investments in the German economy.
READ: China fires back at US interference in COSCO – HHLA CTT deal
The approval paves the way for the expansion of CTT, positioning it as a preferred handling destination for COSCO, HHLA reported.
This development is expected to concentrate the flow of goods between Asia and Europe, which is significant considering China’s status as Germany’s and the Port of Hamburg’s primary trading partner.
Approximately 30 per cent of the goods handled at the Port of Hamburg are either from China or destined for the country.
READ: Geopolitics impacts Port of Hamburg as container volume drops
By securing a minority shareholding in CTT, CSPL not only safeguards existing employment opportunities but also contributes to the enhanced national and international standing of Hamburg as a pivotal logistics hub.
HHLA and CSPL will reportedly finalise the transaction soon.
In March of this year, labour action at the Port of Hamburg shut down vessel movements for 48 hours in a row over wages.
