PSA is buying a 15.33% stake in China United International Rail Containers Co (CUIRC) a joint venture that has a mandate from the government to operate 18 railway terminals within the country.
PSA is taking the stake through acquiring Hong Kong-based Luck Glory International Limited.
CUIRC currently has 10 terminals in operation – in Kunming, Chongqing, Chengdu, Zhengzhou, Wuhan, Xi'an, Dalian, Qingdao, Ningbo and Tianjin.
PSA referenced the fact that China’s inland rail network currently only carries 2 -3% of its seaport container volumes compared to 15 – 40% in Europe and the US.
“The CUIRC project is a game changer for PSA and fits into our overall strategy for China. With our current presence in major China gateway ports, PSA is well-positioned to develop synergies with CUIRC to grow integrated sea-rail intermodal operations across the world’s second largest economy,” Tan Mong Cheng ceo of PSA said.
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