“The strategic advantages and benefits brought to Eng Kong from our investment have prompted us to increase our stake,” said Paul Ng, co-chairman of Eng Kong.
“Post-completion, the enlarged group will handle in excess of 4m teu of container throughput each year,” Ng said, adding that the company is also exploring new business opportunities in Vietnam and Indonesia.
The latest deal follows Eng Kong's acquisition of a further 50% of Gold Prime Holdings Limited, the holding company of Keyun, after having first bought 30% of Gold Prime in 2008.
Eng Kong currently has depots in Tianjin, Ningbo, Shanghai, as well as operations in Qingdao, Dalian, Hong Kong, Yantian and Shekou.
Eng Kong's aim as the controlling shareholder of Keyun's depot business is to establish its logistics operations and wider network to increase its market share in China's logistics market.
The company added that from a broader perspective, the acquisition is a natural development which will strategically evolved Eng Kong from a Southeast Asian leader in the container depot services sector into a leading and dominant player in Asia.
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