Earlier this week, the Pan-United board of directors announced the successful acquisition of 90 percent equity interest in the Changshu Changjiang International Port Co. Ltd (CCIP).
On the 18th February, Pan united, operating through its subsidiary company, Changshu Xinghua Port Co. Ltd (CXP), entered into an agreement with the Changshu Binjiang Urban Construction Investment & Management Co. Ltd (CBUC) to acquire 90 percent of the equity interest held by the company in CCIP.
CXP were successful applicants to a public tender bid for the equity interest bid, offering S$91.3 million in order to clinch the deal.
The deal was finalised on the 24th March.
By gaining the CCIP, CXP hopes to increase operational prowess along the Yangtze River. The company already operates a multi-purpose cargo port within the nearby industrial zone, just adjacent to CCIP.
It is hoped that the smaller-sized break bulk cargo port will complement operations at CXP, therefore allowing for further expansion. CCIP is expected to increase Pan-United’s overall handling ability by a staggering 60 percent, nearly 16 million tonnes per annum.
CXP seem focused on optimising port performance, by redirecting all smaller vessels to CCIP in regards to its size, thereby freeing up space for larger vessels to enter its pre-existing facility.
CXP is among one of the top 10 river ports in China, and a key hub for the export and import of pulp, logs and finished steel for the Chinese market.