COSCO Puts Long Beach Terminal on the Market
COSCO has begun the process of selling its container terminal in the Port of Long Beach, in accordance with the agreement it reached with the US Department of Homeland Security, according to the Wall Street Journal.
The Chinese-state owned company acquired the terminal – one of the most advanced shipping facilities in the world - after it bought Hong Kong-based Orient Overseas International Line (OOIL) for US$3.6 billion in July 2018.
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The Wall Street Journal, which claims to have sources close to the matter, says COSCO is hoping to receive at least $1 billion.
The sale, according to sources, will be completed by June 2019.
US authorities insisted that COSCO must sell the terminal to a third party when it gave approval for the takeover of OOIL, the previous owner of the terminal.
The US was the last party to approve the takeover after the EU and China both gave it the green light earlier in 2018.