COSCO SHIPPING Ports Limited (CSPX) has announced the acquisition of majority stakes in Xiamen Haicang Free Trade Port Zone Investment and Construction Management Co., Ltd. and Xiamen Ocean Gate Container Terminal Co., Ltd.
This move is in line with the company’s strategy to expand its terminal business and build an integrated ports and logistics service platform to provide one-stop logistics services to customers.
The acquisition of 56 per cent equity interest in Xiamen Haicang Free Trade Port Zone Investment and Construction Management Co., Ltd. was completed on 30 December 2022, making it a subsidiary company of COSCO SHIPPING Ports and its first supply chain platform.
The company owns warehouses, yards, factories, and other logistical assets in the Xiamen Haicang Port Comprehensive Bonded Area, with a total land area of around 530,000 square metres.
Its subsidiary and non-subsidiary companies are primarily involved in port logistics, cold chain logistics, container yards, and China-Europe train services.
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The acquisition of 30 per cent equity interest in Xiamen Ocean Gate Container Terminal Co., Ltd. was completed on 28 February 2023, making it a fully-owned subsidiary of COSCO SHIPPING Ports.
The terminal is primarily engaged in container terminal businesses in Haicang Port Area of Xiamen and is the main deepwater port in China’s south eastern coastal area. It is also one the first 5G smart ports in the country.
COSCO said it plans to leverage its domestic and international terminals and back-end resources on land to integrate both subsidiaries into its global business network, develop extended port logistics businesses, and build a leading domestic and international supply chain headquarters based in Xiamen.
By implementing a “ports + supply chain” model, the company aims to provide highly efficient, safe, and convenient supply chain services for customers both domestically and internationally.
Just last month, COSCO SHIPPING Holdings agreed to pay 5.5 billion yuan ($814 million) to buy a 5.8 per cent stake in logistics company COFCO Fortune.
As reported by Reuters, this move is part of COFCO Fortune’s capital increase plan, which will see COFCO and other units of the conglomerate retain a combined 69.8 per cent stake in COFCO Fortune – down from 89.7 per cent previously.