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COSCO pulls out of Philippine investment

COSCO pulls out of Philippine investment

Manila: China Ocean Shipping Co. (COSCO) has given up on its bid to undertake an integrated shipbuilding and international logistics project in Sangley Point in Cavite at an estimated cost of $5 billion.
"Yes, we gave up our original plan," COSCO Group president Capt. Wei Jiafu told reporters at the sidelines of the 10th World Chinese Entrepreneurship Convention held here on Friday.
Wei was a guest speaker at the convention, which was attended by over 3,000 Chinese entrepreneurs from over 22 countries.
"Two years ago we were invited by President Gloria Arroyo for a collaboration project, but for some reasons the project did not materialize," Wei said noting that "certain areas for port development was given to other developers."
With the Sangley Point project already in the backburner, Wei said they are exploring other business opportunities in the country.
Back in June 2007 Wei met with Philippine President Gloria Macapagal Arroyo to discuss plans to develop Sangley Point. At the time figures of between $3bn to $5bn were banded about as to how much the Chinese shipping giant would spend redeveloping the area, which is 8 miles (12.8 kilometers) southwest of Manila, the capital.
With the region suffused in excess transshipment capacity, analysts at the time were surprised at this proposed Cosco venture. Already transshipment centres such as Hong Kong, Busan, Kaohsiung and Laem Chabang are struggling to fill their berths, while southeast Asia's premier pair of transshipment centres, Singapore (where Cosco has dedicated berths) and the Port of Tanjung Pelepas, would have been a stiff match for anything planned in Luzon, the Philippines main island where Sangley Point is based. The area also suffers from dreadful traffic congestion.  [23/11/09]


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