Cosco Shipping Ports expands in the Med with Vado Port buy

China ports giant Cosco Shipping Ports continues on its overseas expansion track with the purchase of a 40% stake in APM Terminals' Vado Holdings, which operates the Vado Reefer Terminal at Vado Port in Italy, for EUR53m ($58.3m).

The transaction was done through its CSPL SPV unit, which is buying the stake from APM Terminals, the company said in a stock market announcement.

Vado Holding is the holding company of Vado RT, which operates the Vado Reefer Terminal at the Vado Port, one of the largest reefer terminals in the Mediterranean region with an annual capacity of up to 300,000 teu in addition to 600,000 pallets.

Vado Holding is also expected to complete its purchase of Vado CT, the company which will operate Vado Container Terminal, a new deep-water terminal located at the Vado Port, in 2018.

The new terminal is currently under construction and is scheduled to commence operation in 2018 with an initial annual capacity of 600,000 teu, which will be expanded to 900,000 teu. The facility will have a maximum draft of 16 m and quay length of 700 m.

Vado CT is designed to be a semi-automated container terminal, and the first among North Italian ports with the capacity to accommodate ultra-large container ships without any physical restrictions.

The terminal is also part of the master plan of the Savona Port Authority to create new and improved supply chain capabilities for markets in Northern Italy, Switzerland and Southern Germany.

"The company’s investment in the Vado Terminals is in line with the company’s strategy of developing overseas shipping hubs and strengthening its global network of container terminals," Cosco Shipping Ports said.

Meanwhile in a related announcment, major northern China port operator Qingdao Port International, also has taken a stake in Vado Port, paying EUR1.7m for a 9.9% indirect stake. This will enable it to take part in the operation and management of the two terminals, the company said in a stock market announcement.

Giving its rationale for the investment, Qingdao Port said: "Relying on the superior resources of the company and APMT, the execution of the Shares Sale and Purchase Agreement and the Shareholders Agreement will further facilitate the promotion of cooperation of both parties in the Vado Ligure Port terminal project in Italy, achieve powerful combination, boost the implementation of the internationalization strategy of the company and exploit the development space of the company."

 

The Vado Terminals are situated at Vado Port in Liguria, a major port area in Northern Italy and the Mediterranean region.

Posted 18 October 2016

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Vincent Wee

Asia Editor, Seatrade Maritime News

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