COSCO Shipping Ports (CSP) has agreed to sell its stakes in three Chinese terminals to Shanghai International Port Group (SIPG) for a combined RMB1.0bn (US$150m).
The operator is selling its interests in Nanjing Longtan Terminal, Yangzhou Yuanyang Terminal and Zhangjiagang Terminal while also announcing that it intends to sell interests in Taicang International Container Terminal and Jiangsu Petrochemical Terminal.
The company noted that it intends to build a global terminal network with controlling stakes and it believes the sales could improve the overall quality of its Yangtze Delta terminal portfolio.
According to CSP, “the transactions are in line with the company’s strategic plan to divest assets in order to achieve capital recycling, which will add momentum for the future development”.
Through various subsidiaries, it has a 16% stake in Nanjing Longtan terminal, a 56% stake in Yangzhou Yuanyang Terminal and a 51% stake in Zhangjiagang Terminal. Meanwhile, it has a 39% stake in Taicang International container Terminal and a 30% stake in Jiangsu Petrochemical Terminal.
The company stated that it aims to improve asset quality, optimise domestic terminal portfolio and improve operating efficiency of the Company.
“Disposal of interest in various port assets, the throughput and profit contribution from which is relatively small, will further streamline our terminal portfolio and enhance our profitability,” it added.
In 2018, Nanjing Longtan Terminal handled 2.9m teu, Yangzhou Yuanyang Terminal handled 500,000 teu and Zhangjiagang Terminal handled 760,000 teu, while Taicang International Container terminal handled 560,000 teu.